BOOK GUIDE TO INVESTING

Description

Book Summary:

“Guide to Investing”: Robert Kiyosaki shows us how to become a savvy investor, and how the wealthy think about investing on a mental, technical, and entrepreneurial level.

By Robert Kiyosaki, 2014 (new edition), 528 pages..

Original title of the Guide to Investing: Rich Dad’s Guide to Investing

Note: This column is a guest column written by Antonin from the Learn to Invest blog

In the Investing Guide, Robert Kiyosaki often refers to his “Rich Dad”. This “Rich Dad” is not his biological father, it is the father of one of his friends who gave him valuable advice on financial education. This “Rich Father” is the same as the one presented in another book by the author: Rich Father, Poor Father. »
Chronicle and summary of “Guide to Investing” by Robert Kiyosaki:

Introduction:
“By reading this book to the last line, you will know more about investing than many investment advisors who get paid to offer their advice. »

This is Robert Kiyosaki’s promise regarding his Guide to Investing. This starts from a simple observation: Pareto’s law (also known as the 80/20 principle) applies to the distribution of wealth, and even beyond, since 10% of people hold 90 % of money available. To succeed, you must therefore “come out of the average”.

To do this, it is necessary to invest and understand how companies operate, because it is often through them and in them that we invest. But there is a problem:

“The average investor doesn’t know how to do it and that’s why they are part of the 90% who only earn 10% of the money. »

The following topics will be covered in order to understand the difference between the investor who hopes to make money if the market is good, and the investor who makes money regardless of the state of the market:

The 10 levels of investor control
The 5 phases of the plan to get a poor person to invest a lot of money
The different tax laws that govern investments
Why and how a real investor makes money, regardless of market conditions
The difference between fundamental and technical investments
Five Types of Top Investors
The difference between not having enough money and having too much
How to ensure an income significantly higher than $200,000 to start investing in the spheres of the rich
The main difference between the rich investor and the average investor is their way of thinking. The wealthy investor seeks to increase their skills and think bigger and broader than the average investor (aware that there are different ways of thinking.

This first phase of the Investing Guide presents eighteen investment lessons:
1. In which sectors should I invest?
“Only rich people can invest in the same way as rich people. And that is why the rich get richer. »

Accredited investors may have access to certain types of investments. To be accredited, they must have an annual income greater than $200,000 or have assets of more than one million dollars.

But that doesn’t make them informed investors. Savvy investors have the 3Es: education, experience and excess cash flow. The following chapters will show how to obtain the 3Es.

The five phases of the plan in this book correspond to the steps for learning to become a savvy investor:

Are you mentally prepared to become an investor?
What type of investor do you want to become?
How to build a strong business
Portrait of the informed investor
Return the favour
All millionaires and billionaires have gone through these five phases, from Bill Gates to Marc Zuckerberg.

You cannot teach someone to become a savvy investor, but an individual can learn to become a savvy investor.

2. Establish the Foundations of Wealth
All investors do is learn how to learn how to make their money work.
Establishing the Foundations of Wealth
All investors do is learn how to learn how to make their money work.

Everyone will tend to gravitate towards a different career path based on their emotional needs: those who need security will likely become employed, while others who seek more independence will have their own small business.

But wealth is created on the other side of the CASHFLOW quadrant, by becoming the owner of a large company, or an investor.

The investment process begins inside, in the head, and with a simple decision.

It all starts with a very personal decision, a choice between being rich, being poor or being part of the middle class.