February 22, 2007

Donald Trump's buddy Kiyosaki knows what's coming, says get to gold and cash now

I can't stand the guy, I think he all about publicity and selling books, but damn, he's spot-on here. Just like he is about the entitlements disaster awaiting America, and some other great points. Don't throw the baby out with the bathwater they say. And if Mr. Real Estate, Mr. Donald Trump Buddy, says get to gold and cash, well, there's something there...

I wonder if he told The Donald?

Throwing Good Money After Bad - All booms eventually go bust.

We all remember the stock market crash of 2000, and most of us remember the real estate crash after the implementation of the 1986 Tax Reform Act. Today, many people are anticipating another real estate crash.

Unfortunately, despite our understanding of booms and inevitable busts, it's always near the top of a boom that "dumb money" buys in. Currently, this has set the scene for a potential market bust of which few people are aware.

About a year ago, I wrote a Yahoo! Finance column warning readers that the real estate boom was over. How did I forecast the end of the boom? I got my hot tip from the cashier at my local Safeway supermarket.

While she was tallying the cost of my apples, broccoli, and steaks, she handed me her new real estate agent's card and invited me to call her for my next real estate investment. Moments later, I was home writing that column. As my rich dad used to say, "When dumb money chases smart money, the party's over." Needless to say, many real estate agents and investors wrote me nasty notes.

For the next two years, I'm cautioning people to watch their ratios between good debt and bad debt, and keep liquid reserves such as cash, gold, or silver.

Good debt is debt that makes you rich. An example of good debt is the debt on the apartment houses I own. That debt is good only as long as there are tenants to pay my mortgages. If tenants stop paying their rent, my good debt turns into bad debt.

Most people don't have good debt -- all they have is bad debt. Bad debt is debt that makes you poorer. I count the mortgage on my home as bad debt, because I'm the one paying on it. Other forms of bad debt are car payments, credit card balances, or other consumer loans.

The good news is that during deflationary times, smart money reenters the market, so crashes are great for smart people with smart money. Instead of listening to the optimistic economists, then, you should eliminate bad debt and improve your debt-to-equity ratios on good debt.

53 comments:

Frank said...

I like Robert Kiyosaki. I've had the pleasure of meeting him several times and in person he's extremely humble and down-to-earth. He's certainly not the publicity hound he appears to be "in character" and he truly appreciates his readers. And yes his advice is almost always spot-on :-)

RayNla said...

I just wonder what advice did Kiyosaki give our friend over at the I'M Facing Forclosure Ranch.

concerned said...

If you asked Robert Kiyosaki 3 years ago that real estate is heading into bubble territory, he would of laughed in your face.

Now he is merely protecting his own ass. Jumping on the precious metal bandwagon, after brainwashing the weak minded of the Casey Serin ilk.

He is to personal finance what L. Ron Hubbard is to psychoanalysis.......

Anonymous said...

http://www.richdad.com/pages/article_dollar_crisis_part2.asp

Thank you for your response to my Financial News Alert "All Booms Bust." The number of people that responded surprised me. Since the response was substantial, I thought I would continue on with my thoughts on the subject of the probability of a bust coming. Also, I thought I would add what I am doing to profit from the bust. So thank you for your interest in the subject regardless if you agreed or disagreed with my message.

About a week after my message on the coming bust, the June 18th 2005 issue of The Economist ran two different articles supporting my concerns about the real estate market. The following are some comments I think are noteworthy. They are:


Measured by the increase in asset values over the past five years, the global housing boom is the biggest financial bubble in history.”


Prices are already sliding in Australia and Britain. America’s housing market may be a year or so behind.”


Not only are new buyers taking out bigger mortgages, but existing owners have increased their mortgages to turn capital gains into cash which they spend. As a result of such borrowing, housing booms tend to be more dangerous than stock market bubbles and are often followed by periods of prolonged economic weakness.”


A study by the IMF found that output losses after house-price busts in rich countries have, on average, been twice as large as those after stock market crashes, and usually result in a recession.”


Two-fifths of all American jobs created since 2001 have been in housing-related sectors.”


The housing boom was fun while it lasted, but the biggest increase in wealth in history was largely an illusion.”


The day of reckoning is closer at hand. It is not going to be pretty. How the current housing boom ends could decide the course of the entire world economy over the next few years.”
You may want to obtain a copy of this issue of The Economist and read the entire two articles and then decide for yourself if there is another real estate boom ahead, or a bust.

RECESSION OR DEPRESSION

On Friday, June 23rd 2005, I was on Your World with Neil Cavuto on the Fox Network. He asked me what I recommended when it came to investing in real estate. I replied, “If you’re new to real estate investing, this is not the time to get into the game.” Unfortunately, many people are in the market late and not only have paid too much for their homes, they are over-leveraged.

The Economist article went on to say, “42% of all first time buyers and 25% of all buyers made no down-payment on their home purchase last year.” That is what I call over-leveraged. They bought late in the cycle, probably paid too much, and have signed their lives away on the dotted line. I am concerned for these people.

In 1929, the stock market crash led to The Great Depression. Some of the causes of the Depression were excess credit and too many people buying stocks on margin... i.e. leverage. In 2005, once again there is too much credit and instead of stocks, individuals are purchasing real estate with leverage. So is it “Deja-vu all over again?” History shows that there is a depression approximately every 75 years. The last depression occurred 75 years ago. Is it time for a really big bust or will the boom continue on? Only time will tell.

HOW I AM INVESTING TODAY

As many of you know, I have been in gold and oil for several years now, beginning in 1996. While Kim and I have continued to invest in real estate, I have been more active in taking my Chinese gold company public on the Toronto Venture Exchange. I have also invested in several oil and gas wells.

When it comes to real estate, Kim and I have let go of non-performing properties and made several million dollars. Does this mean we are selling real estate? The answer is “No.” Although selling we are still buying property, we are being very selective. Although we have “flipped” properties, our primary objective is good properties in good locations with a positive cash flow. Currently, Kim and I are buying properties in Oregon as well as in Arizona. We bought them because we believe they will do well regardless if the real estate market booms or busts.

PROBABILITY VS PREDICTION

Although I have made predictions, I don’t like to. Instead of predicting the future, I choose to evaluate probabilities. A friend offered Kim and I the opportunity to buy a piece of land for $1 million. He said, “In two years the property will be worth $2.5 million.” If this were year 2002, I would have jumped all over the deal. But it is year 2005. The question I ask myself is, “What is the probability that the boom will go on for two to three more years?” What is the probability that the property will more than double in two to three years?” My answer is “slim to none.” Your answer may be different. Can I be wrong? The answer is, “Yes I can be wrong. The boom may go on for ten more years and that $1 million dollar piece of land could be worth $10 million maybe $15 million.” Yet at this late stage of the market, I will only invest in properties that return a cash-on-cash return on a monthly basis. That is why I like my Oregon and Arizona deals. In the short term, I may not make as much money as the land deal, but they should return a positive cash flow regardless if the market goes up or down. After the crash, I may change my strategy.

WARREN BUFFET

Even Warren Buffet is seeking safer investments. Recently he announced he was investing in utility companies... not for capital gains but for capital safety. Buffet's two most important rules for investing are:

Rule #1. Don’t lose money.

Rule #2. Don’t forget rule number one.

THE GREATER FOOL

In the world of investing, there is what is known as The Greater Fool Strategy of Investing. When someone buys a property to flip, or a share of stock to sell at a higher price, that is the Greater Fool Strategy in Action. In simpler terms, a person buys a property or a share of stock not to own but in the hopes that there is a fool greater than them. The problem is, when the bust comes, and it will come, many people who were buying for a fool greater than them, may find out that they were the last fool in line.

A FINAL WORD FROM THE ECONOMIST

Another interesting comment from The Economist went, “Another sobering warning is that after British house prices fell in the early 1990s, it took at least a decade before they returned to their previous peak.” I’ve made a lot of money in the last few years in real estate, but I believe it is time to move on and invest in other assets. And that is why I am moving more of my money to gold, silver, oil, and gas. While I love real estate as an investment, and will continue to always invest in real estate, this is not the time to let love blind me to reality, the reality that all booms eventually bust.

Thank you,

LauraVella said...

The Donald didnt know when the last RE cycle ended, I doubt he knows this one either. However, I will give Robert Kiyosaki some credit. In his column he was talking about buying gold and silver more than a year ago.

I would listen to Robert Kiyosaki's advice before the Donalds any day.

Anonymous said...

I get miles on my credit card, me is smart turning bad debt into good. It's the payday loans that hurt me.

Anonymous said...

I saw RK at a local fundraiser saying Phoenix was still the best place to invest in RE.

This guy's a liar and snake. The only success he's ever had is selling books. His finance expertise is vague and 100% unproven.

But, I think silver's a good bet. If it hits 15, sky's the limit.

Anonymous said...

concerned said : If you asked Robert Kiyosaki 3 years ago that real estate is heading into bubble territory.

I beg to differ, I recall sometime in early 2001 (check publish date of book) i read his book "PROPHECY", in it he wrote something along the lines of this: - Walking thru the airport, I picked up a copy of USA Today, athe headline was Housing related, I shoook my head as I got into the cab.

RE is is biz, but he has been on record that too many are chasing.

Anonymous said...

does anyone know the symbol of the chineese gold company robert is part owner of?

Anonymous said...

Watch 'concerned' insert his/her foot into mouth. The bubble was going strong three years ago, get it? Kiyosaki started warning in 2005 - 2006 so his timing was pretty good. That you think he should have been warning in 2004 is of no importance and entirely irrelevant. Your post is to intelligent discourse as PeeWee Herman is to Shakespearean theater. Perhaps you can show us all how the housing bubble peaked in 2004? Please enlighten us. With proof.

bust a nut said...

This guy is a crook keith.He is nothing more than a promoter of bullsh@t.Take off you tin foil hats people and live a little.

Anonymous said...

Throwing Good Money After Bad - All booms eventually go bust.

** Is he disparaging Kendra Todd, she of bubbles are for bathtubs?

Unfortunately, despite our understanding of booms and inevitable busts, it's always near the top of a boom that "dumb money" buys in.

** Is he ripping on Casey Serin?

Anonymous said...

Delation? WTF? All I read here is inflation this inflation that. Buy gold. Buy silver. Price of hamburger just jumped 20%, the end is near!!.

Now all of a sudden we're facing deflation?

You sound like "scientists" who in the 1970s were convinced an ice age was coming. Then 20 years later oopsie we meant global warming is coming.

Pick a side and stick with it KEIIFER, you sound foolish.

mnhp said...

Now he is merely protecting his own ass.

yeah, donanld and kiyosaki helped make people irrational just like wallstreet got day traders too excited...

Anonymous said...

So gold is up 3% yesterday? Gold never goes down right. Buy gold now or you'll be priced out forever, right. They can't make any more of the stuff so the price has to increase. Right everyone?

Had you bought gold for $700 in 1980, you'd be down today, 27 years later. Adjusted for inlfation you'd be, well beyond fucked. Compare that to investing in the DOW or S&P500 in 1980 or dare I say it, buying real estate in 1980. Not even worthy of comparing returns between the two options.

Had you bought gold for $400 in 1990 you'd be worse off than had you invested in a house almost anywhere in the country. And again, compare that with investing in the DOW, or S&P500 or even the NASDAQ with the 2000 crash included. You'd be much better off off than investing in gold.

But you all keep buying gold, selling stocks, selling real estate since we all know (everyone together now)

THIS

TIME

IT'S

DIFFERENT!!

uknowwhoiyam said...

About a year ago, I wrote a Yahoo! Finance column warning readers that the real estate boom was over. How did I forecast the end of the boom? I got my hot tip from the cashier at my local Safeway supermarket.

These days the cashiers at the Safeway are touting gold.

What does that mean?

Blowfly said...

I just read something that makes Blowfly very happy. The Florida State Legislators are considering to drop all property taxes and increase the sales tax 2.5% to 10% - the highest in the US. BwaHahahahaa, this means that you dog faced, baldheaded, shit eating renter assholes will be double punished. First the rents won't decrease and second you'll be paying more for your Alpo dinners. Florida Rocks!

Dr Housing Bubble said...
This comment has been removed by a blog administrator.
Anonymous said...

To all you Gold pushers:

I decided to do a little experiment last night. Last year my dad gave me some 1oz gold coins, American Eagles I believe (at least that's what they look like, I'm not a gold or coin collector). Checked gold prices online, see that one coin is worth about $700. So...off to the grocery store I go.

Loaded up my shopping cart like I do each week. When it came time to pay, I handed the cashier the gold coin. She looked at it, looked at me, looked at it again, then asked "What is this? Your prize out of the vending machine out front?" I told her it was gold, worth about $700, and that I would like cash back. She paused a moment, then called the manager. After the manager shows up, I tried to explain to him the value of the gold coin. Both his and the cashier's eyes glazed over. Well, long story short: I pulled out my debit card, paid for my stuff and left.

Ok, ok - both the cashier and manager are your average dumb Joe-sixpack American who knows very little, if anything, about gold, let alone how to balance their own checkbook. But if you guys who think that the shit is going to hit the proverbial fan ie. total US financial meltdown and will be able to casually use your gold coins to buy what little food is left, you're kidding yourselves.

The cashier may not understand gold, but she will certainly understand a gun pointed in her face.

Guns or gold - you decide. Me? I'm buying more ammo. A gun will "buy" me more food than gold will.

And if I'm wrong about all the above, I still win: I'll use my gun to take your gold.

Anonymous said...

Keith, why got to cash?
Be specific.
The dollar is going to freaking crash too, unless the Fed increases rates.
Check out the British Pound to US Dollar rate right now!
So if it's not gold and has to be cash, then which cash?

Concerned said...

To the Kimosabi worshiper above. My foot does not belong in my mouth, but I would rather place it right up Mr Kimosabi's ass.

He warned about a housing bubble way after many reputable economists were doing the same in 2004 and dare I say it in 2003.

Kiyosaki/Kimosabi or whatever is just a spruiker who simply wants to cover his ass every once and a while so as to prove that he is still a financial Guru.

All you need to do that is some free time, a pack of cigarretes and a good internet connection......and bingo you have all the 'research' and 'insightfulness' you need.

All Kimosabi is, is a modern day medicine man....preaching cures to the masses.

He preaches 'the sky is falling' rhetoric after the fact, or when it is plainly obvious it is about to happen (note his 2005 article).

Let's see when he decides to get out of precous metals....I bet it's when the stock market starts to dive.

the only man he has made rich, is himself.

Concerned said...

BTW....to all thos who doubt gold, you are sadly mistaken.

I'm not saying that a bubble cannot form in PM's.....but gold will always be money, God's money if you will. Always was, always will be.

It's value will never be zero, and it will not become a simple 'commodity', no matter how hard the bankers beat their asses on the floor.

Anonymous said...

>does anyone know the symbol of the >chineese gold company robert is part >owner of?

Dont know which company that is.
But here are 2 companies mining gold in China:

1. Goldrea (GOR.V in Toronto and GORAF in US brokerages)

2. Jinshan -- (JIN.TO in Toronto and JINFF in US brokerages)

Do your own due diligence.

TraderG

Anonymous said...

You sound like "scientists" who in the 1970s were convinced an ice age was coming. Then 20 years later oopsie we meant global warming is coming.

This is one of those canards that is constantly repeated but has absolutely NO basis in fact. Yes, a few scientists looked at some data and speculated that we may be moving towards another ice age. But, the rest of the scientific community assessed the claims and found them wanting. There was never anywhere near a consensus within the scientific community about that.

The situation today is vastly different, there is an absolute scientific consensus that human-induced climate change is absolutely real. The situation today and that of the 1970s, in terms of the scientific legitimacy of the respective claims, is like the difference between Robert Schiller's work on the RE bubble and the "work" of Kendra Todd on the same.

GT said...

been a while since i seen me the word gold on this here blog? why is that?

Anonymous said...

Of course if the "gold pushers" sell their gold for a big profit and you are stuck with nothing but debt, I think they will be able to buy bigger guns than you will.

Anonymous said...

YO - Anonymous said...
So gold is up 3% yesterday? Gold never goes down right. Buy gold now or you'll be priced out forever, right. They can't make any more of the stuff so the price has to increase. Right everyone?

HOW STUUUPID R U?

So you check out the returns BASED on MARKET TOPS, BWAHAHAHAHAHAHAHHAAHA....

Today RE is at the TOP, DOW is at the TOP, S&P is at the TOP.

CYCLES BABY

the 20 year cycle of the DOW bagan in 1980 - as gold topped, all the dumb asses bouhgt in and poof, bye bye.

Today all the dumb asses have bought into RE and poof BYE BYE.

Gold and silver are BEGINNING their cycle.

but is stupid publik skoolers like yoiu that will make ME rich when you decide to buy my silver and gold at the top - say about 3000 gols and 145 silver.

keep in touch, i'll give you a 10% discount


Bwahahahahahahaha

SUCKER!!!!!!!!!!

Anonymous said...

Actually Florida proposed dropping the highest property taxes by 19% in exchange for a 2.5% increase in the sales tax.

Don't tell me about Florida, I live there. You can rent a house for sale for $1 million for about $2500/month. Only a total idiot would buy and not rent in Florida.

You can do this all over Florida...gulf coast, north, south, east coast...everywhere.

Anonymous said...

Last May I was in Txeas working for a client. Over lunch one of the employees mentions that she has done amazingly well investing in gold and was buying more every week. This was a mid-level admin woman in her late 30s, early 40s.

At that moment in time I knew gold was no lomger a good investment and sure enough within a week gold hit its peak and sank like a stone.

Bubbles and manias are not exclusive to stocks, real estate and tulips folks.

whatsinit4me said...

Kiyosaki is FOS, this is how it goes:

Looks at list, lets see here step number 125:

After making millions via rich dad/poor dad ponzi scheme wait for top of market and then tell version of Joe Kennedy's (I believe that's who it was)1929 story about how he got out of the stock market when his cabbie gave him a stock tip.

Please...what Kiyosaki understands is market psychology and the ability to heartlessly exploit it, that's his fun, and that includes the "humble" persona. He has no respect for you dear reader, in the privacy of his own mind I'm sure he sees average Americans as nothing but fools and pansy ass followers.

keith said...

Oh, we've talked about gold - just keep up. My take right now is it's getting ahead of itself so I always put in a 5% stop loss but it's been tough to keep up!

On cash, I like euros and pounds and want to like yen but BOJ needs to get a bit more serious. You'll know when to do yen and the carry trade unwinding will be harsh.

I also am looking at the gold miners. Less 'heat' than the yellow stuff itself and they'll be printing money (and doing share buybacks) all through 2007

The US$ is hanging in there short term. I like my 5.75% cd and 5.5% savings.

Remember, I'm a bit different as I live in europe and need my purchasing power to stay intact, so the dollar situation is critical.

cheers

Anonymous said...

Anonymous said...
To all you Gold pushers:


What a nice guy your Dad was, what happened to you?

Anonymous said...

one in every crowd, ammo totters! veggies planted on white house lawn yet? not realy a fan of high priced old hickory nut coffee!

Sarah said...

Have to say: I am awash in gratitude for this blog-- I JUST LOVE IT-- Thank you all for the helpful info!

Anonymous said...

$3000 gold? BWA HA HA HA!! Based on what, hope, prayers?

Keep buying that gold at $650 and maybe in a few years I might give you $200 for it, if I'm in a good mood.

But then again maybe not. Afer all they can't make any more of the stuff, it must always go up right?

Anonymous said...

I agree with "concerned's" post.

Kiyosaki saw NOTHING coming. He is nothing more than a paid shill who is now backtracking to save his own arse. Need anyone be reminded about Casey salivating at the very feet of this idiot?

And I have to chuckle at his quote regarding what his "Rich Dad" indicated. Has it not already been established that "Rich Dad" never existed?

Keith, I love your blog. It is one of my favorite reads on the net. But please, for the love of God, do not post statements from Kiyosaki. That individual is one of the major factors that this housing bubble reached the levels it currently resides in. Not to mention the plethora of horrible advice that douchebag continually touts. (college is worthless, 401ks are risky, etc). And all based on false pretense.

So please, for the sake of your loyal readers, keep Kiyosaki off of your blog. If there is anything that man does not need is more publicity.

Anonymous said...

Anonymous said...
$3000 gold? BWA HA HA HA!! Based on what, hope, prayers?


based on fundimentals baby.

1 billion chinks like gold, not paper.

nearly 1 billion indians (dot kind) like silver and gold for doweerys and personel wealth.

these 2 billion peoples are gettin rich by working for the AM CORP clowns which fire americans and hire 3rd world miny mart clerks.

the dollar is toast - 1 trillion in iraq and 44 trillion in debt.

gold is F-I-N-I-T-E (look it up dummy).

printed dollars are I-N-F-I-N-I-T-E (ditto)

$3000 is low.

Anonymous said...

I don't know why people slam Kiyosaki so much.

"He's trying to sell his books". So what!

His rich dad and poor dad are not real people". Who cares? It's metaphorical.

He thinks the way rich people do and imparts a simplified version to the general public so that they develop a new mindset.

He made a brave call a year ago and I believe he is right.

The Thinker said...

Sorry to burst your bubble Anon, but like gold, real estate is finite too. If something is over priced it is over priced. It doesn't really matter if they are making any more of it.

Anonymous said...

"Had you bought gold for $700 in 1980, you'd be down today, 27 years later. Adjusted for inlfation you'd be, well beyond fucked. Compare that to investing in the DOW or S&P500 in 1980 or dare I say it, buying real estate in 1980. Not even worthy of comparing returns between the two options.

Had you bought gold for $400 in 1990 you'd be worse off than had you invested in a house almost anywhere in the country. And again, compare that with investing in the DOW, or S&P500 or even the NASDAQ with the 2000 crash included. You'd be much better off off than investing in gold."

===============================

Go back to 1972 when Nixon took us off the gold standard and gold was $32. A few years later it hit $350 on the upside, the DOW was halved, and Gerald Ford was pushing W.I.N. buttons. Gold wasn't defeated until several years later when Paul Volker took interest rates up to the mid-double digits to get money back into savings accounts, and thereafter ths stock market. The best place to stash your dough changes over time. Do you recall ads touting "Mortgage rates are at the lowest in 40 years" recently? What was going on then? Tax cuts, lots of spending, the Vietnam War. The shortfalls had to be paid for and that's what came with a vengeance in the '70s. Now we have tax cuts, lots of spending, foreign wars, and a massive population segment aging who will put a great stress on Medicare and social security in a few years. The setup now looks worse than what it was coming out of the '60s. Gold $10,000 or higher before the Feds get their act together and stabilize the dollar.

Anonymous said...

Gold is finite? Ohh you mean like they can't make any more of the stuff?

Hmmm you mean like land and beachfront condos? Cuz someone once told me land and beachfront condos will ALWAYS increase in value too since there is a F-I-N-I-T-E supply of land and beachfront condos too.

Don't you see you numbskull, you are using the exact argument real estate agents made? Can you really be that stupid?

Anonymous said...

To the Anon referring to all the gold pushers:

Oh yeah, gold is junk:
Just because the Cambodians used gold to buy their way out of Cambodia when their paper money wouldn't work, I guess that makes gold junk.

For those in South America and Africa who saw inflation turn their paper dollars into little more than toilet paper while those who had gold could exchange it for strong foreign currencies, or for food on the black market,
Yeah, that makes gold junk.

You wouldn't try to swap a diamond ring for groceries, you would go to a jeweler or pawn shop and spend the local currency.
You also wouldn't have much luck spending Euros or British Pounds in a local US supermarket, you would take it to a currency exchange for the local currency.

For three thousand years, 3000 years, somebody has been willing to swap what they had for gold, do you think that if things crash in this country no one, ever, ever, ever will swap food for gold?

If so, you are going to need a gun, those with gold and food can always use one more footsoldier.

Anonymous said...

The guy's gotta sell another book, FAST!

Why shouldn't he change his tune, like all those sleazy newsletter writers who need to keep peddling the same crap again and again to new idiots?

Anonymous said...

"The situation today is vastly different, there is an absolute scientific consensus that human-induced climate change is absolutely real." - As a physicist I can tell you that this statement is incorrect, to say it mildly... Though I don't have time to argue with incompetent idiots, I'll continue to enjoy this blog.

Anonymous said...

The best indicator for recession is when Trump files for bankruptcy, not the bond yield curve. Last time he did this was 1991. LOL, sort of.

LauraVella said...

I'm happy....

My gold portfolio is back up to the high of May 12th!


Get ready for gold to blast off!

sinis said...

RK is a scam artist:


http://www.thesimpledollar.com/2007/01/26/deconstructing-robert-kiyosaki/

>>Background
It is very difficult to find a clear, reliable background on Robert Kiyosaki, but here’s what’s easily verifiable about him. He was involved in several business deals (most notably, nylon Velcro wallets) in the 1970s and 1980s which fell apart, leaving him bankrupt in the mid-1980s. In this timeframe, he became heavily involved with Amway, a multi-level marketing system, and began to cultivate relationships with many of the “top” members. In 1985, Kiyosaki founded Cashflow Technologies, a company that was designed to pitch a series of books and other educational materials that eventually evolved into Rich Dad, Poor Dad.

By the mid-1990s, Kiyosaki had self-printed Rich Dad, Poor Dad and it was starting to appear in wide distribution among members of the Amway/Quixtar organization, as individuals higher in the pyramid would recommend it to people further down the chain looking to get ahead. Kiyosaki took these “sales” numbers to major publishing houses and before you know it, Rich Dad showed up on shelves everywhere and spawned an army of similarly-packaged books, board games, and so on.

sinis said...

The problem with gold and energy comods is that we are enetering a new era, one of Resource Wars. If push comes to shove and foreign govt start implementing state owned resources a mandate you can bet your sweet ass that the 1st world countries will do likewise. So either the govt bans ownership, or they re-value these comods so that they are worthless to the public. Some may see past this and still try to use it on the black market for trade, but most sheeple will link the low value to mean that gold, silver, etc. are worthless since they cannot buy anything with it and it is not fixed to a currency value.

sinis said...

Gold is not the real winner, the real winner, just like the California Gold rush, is supplying the miners. Invest in equip and new mines, etc. Thats were the money is.

sinis said...

If so, you are going to need a gun, those with gold and food can always use one more footsoldier.

February 23, 2007 12:51 AM



No, the one with the gun will be taking the gold and the food and enslaving the masters.

Anonymous said...

GT said...
been a while since i seen me the word gold on this here blog? why is that?

until the gubment buys all the ammo.

nation wide shortage on ak ammo NOW. getin redy for Iran?

Halifax said...

To Keith and a variety of anon bloggers:

Perhaps I am reading a different author - he focuses on creating "cashflow" rather than "net worth", including cash accounting versus accrual accounting, addressed on a previous thread.

Does Rich Dad exist? Probably yes: Richard Kimi. http://www.sand-seaside.com/About_Us.aspx

How about his associates? "Peter" in Rich Dad's Guide to Investment is Peter Marrone of Yamana gold (AUY), named at Kiyosaki's mother (maiden name). You could have picked up 100,000 shares for a dime several years ago. His obscure richdadgold site (now enveloped in his slick new site) has been up before he went on Oprah. Kiyosaki's well-described 3 piggybank method involves a third to investing/trading, a third to charity and a third to cash (gold and silver).

He picked up a bunch of RTC property (how many anons here were around then?) and 1031'ed them into a large apt in Arizona (how many anons here have done a 1031?)

Now he does late night infomercials. Big deal. Read his educational views in his pre Rich Dad ("If you want to be rich and happy, don't go to school").

Casey Serin should have read Retire Young, Retire Rich, detailing the dangers of leverage.

Johntreed's hysterical rants miss Kiyosaki's points: financial education (and if it's important), market timing-interest rates-laws (from Guide to Investing) and buy/create cash-flow positive assets (including trademarks, patents and copyrights) that pay the monthly bills.

On the topic of TMs - one of his Advisors is the attorney who went head to head with Art Modell, and kept the Cleveland Brown name in Cleveland - the attorney's wife is Kiyosaki's coauthor, Sharon Lechter.

Are we all talking about the same person?

Halifax said...

(con't)
He picked up a bunch of RTC property and SFH in Oregon after the 1987 change in tax laws and subsequent RE collapse, 1031'ed them into a large apt in Arizona, then retired.

Kiyosaki is quite public about his conflicts with his academic father and other teaching types about finance - "money isn't important" [but we'll sure as h*ll go on strike if you change our DB pension plans to DC pension plans (a topic covered in Rich Dad's Prophecy)]. This, and perception of risk, are his important messages, not seminars with Trump or photos with Serin.