Sunday, September 20, 2009

Some of Robert Kiyosaki's sayings ...

Below are some of Robert Kiyosaki ( Rich Dad ) sayings and my thumbs UP or DOWN as a respond ...

"The recession is NOT over ... it has been Glossed over ..."
I was calling it the PM effect - (Prime Minister). I knew for sure Obama and Najib could have brought some effect but never did I know that they can really pull it off until today. Anyway, a nice 'gloss' they did indeed ...

"I park my money in gold, silver, oil commodities that goes up as USD goes down ..."
I agree but then again, don't forget in forex trading, USD down could easily be hedged by trading reverse currency pair too. I don't know if Rob knows about forex.

"Gold will crash in October November down to $800 range ..."
I was thinking December but there about share the same philosophy of gold trend.

"Market will be volatile for years to come, this means traders wins over long term investors."
I agree with the volatile part. Duh ... what market is not volatile in today's finance ? By traders Rob meant the speculators. This is the part why clearly Rob fails to make money from stock market for the past 40 years ( Not really true, but relatively it is true especially when compares to his passion in real estate). In a market that is more volatile than you, the higher frequency of transactions imply higher chance of losing. The only time when a speculator earn money in a volatile market is when the speculator's ability is still beyond the volatility, or in other words, to such a speculator, the market is not that volatile yet. This is a big topic and could probably be the last thing I can ever share in this blog but it will come eventually. But basically Rob gets this part in reverse and hence stock market is never his cup of tea.

"Stock market is not the place to invest for long term."
Its quite funny reading some of his views in stock market in his latest book Conspiracy Of the Rich to be published tomorrow. He was quoting the lows and the highs of Dow Jones. Then shows how bad it is going from the Highest to the Lowest. He also shows after one big cycle of Lowest to Lowest, there is really not much left. Although what he shared is true but nevertheless Definitely is NOT the complete picture. If a person is so smart spotting the cycles and patterns of ANY investment vehicle, why cann't he make use of it to his advantage ? That ... will always be my biggest puzzle to Rob's life story unless he admits he has personal preference to real estate and thats about all.

"Saving is bad."
This is a OMG respond some of the gun you sucker Rob kind of protest from me. USA is going through a very special kind of transformation in its finance today. So it may be ok to say savings is bad of USA folks but it ABSOLUTELY DOES NOT APPLY to the rest of the world.

Lets face the simple truth;
Spending less is better than spending too much,
Saving is better than NOT saving,
Able to INVEST with higher return is better than saving.
and lets review today's personal finance status;

Most personal investments produce an average return of less than fix deposit guarantee interest. Only 30% of such investments provides a positive returns, this means 70% lose money. And only 10% of them make a significant return in comparison with mutual fund return.

Although the title is 'Don't Save', but what Rob is really saying is 'Invesment is better than saving'. Which I agree with the content of the whole chapter. But the title is so misleading that it actually damage many young minds. All they see is the title and they stop saving and start spending ! They spend to lose, not spend to win. They would thought they are spending as to invest but as there is certain way that a human mind would work best - instinct - more and more fail just because our global personal finance guru, Mr. Robert Kiyosaki said that Saving is BAD.

The biggest conspiracy in "Conspiracy of the Rich" is Rob in need of making more money by abusing his global influence and cross the ethical line in his new book marketing ....


nevertheless still a good book to keep. Other than the crazy 'Don't Save' stupid marketing talks, there are a lot of useful contents inside ...


min dfin said...

Without savings, where can we find the money for investment lawfully,
unless we borrow to invest and we are sure of the returns... which is not all the time the case.

Bad Credit Motorcycle Loans said...

This is correct that recession is not over. It is been glossed, but i think this is the only way to motivate people to move forward. This is a hope for that motivates everyone to try there luck in market.
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Anonymous said...

in my opinion, people/general public needs confidence; without people spending, things are gonna stay stagnant, and everyone will not go anywhere...i believe this is a good start, seeing people start to convinced that things are not as bad as months ago...juz my opinion :)

Mt. said...

min dfin, thats rob's idea, he is so sure about property investment that one should use debt to increase 'cash flow' and NOT saving in bank

bcmloans, its NOT the only way but by now apparently the glossing has been proven working pretty well, we just have another 6-7 months to go before calling its all over ...

anony, the right way to get ppl to use their money is to increase the values of the things ppl are buying, NOT to confuse ppl to forget why they stop buying initially.

ChampDog said...

As a matter of fact (just out track a bit) especially those traditional rich Chinese business men, they usually don't know how to save. They're pretty good at spending in fact! :) That's why those saving scheme is usually good for them.

Mt. said...

Not quite sure if its the same, Pasar Kepong has private saving scheme that is totally bogus but has been existing for more than 20 years and almost ALL 'successful' stall owners save their fortune through such a system ... this shows everyone really has their own way of lifes, a no-good system doesn't mean it has to be a 'bad' system.