BOOK REVIEW: Guide to Investing
Title : Guide to InvestingAuthor: Robert Kiosaki
ISBN: 0446677469
This book is written by ‘Rich dad poor dad’ famous author Robert Kiosaki. This is the third book in the series and mainly talks various aspects of Investing. Robert has his highly educated dad whom he calls as ‘Poor dad’. He calls him poor because all he did was worked for somebody and remained poor during his retirement time. Robert’s calls his friend’s dad as ‘Rich dad’ because rich dad built a huge amount of wealth by building businesses.
In the year 1974 Robert takes comes out of his marine-cop job in Vietnam and starts learning his investment lessons from his ‘Rich dad’. The book consists of three parts. The first part Robert discusses about four major elements of personal finance. They are ‘Income’, ‘Expenditure’, ‘Assets’ and ‘Liabilities’. He explains how rich people make their ‘Assets’ generate the ‘Income’ and how poor people spend their lifetime by paying up for the liabilities. In the second part Robert explains his ‘Cash-Flow-Quadrants’ in which he classifies people into Employees (E), Small Business Owners (S), Business Owners (B) and Investors (I). He clearly shows how people take the E path and remain poor and how his rich dad took the B path and built wealth. He also talks about personal financial statements, tax and other legal aspects.
In the third and most interesting part Robert talks about ‘Entrepreneurship’. He explains various aspects of building businesses. This section is excellent and inspired me a lot. Finally Robert concludes with stressing the importance of ‘Ultimate Investor’ where an individual builds a business and takes it into public. The first two parts are kind of repetitive and Robert tries to talk the same thing again and again. But I somehow feel in order to understand the ‘Financial-literacy’ this book is a must read mainly because it is simple at the same time makes the reader think a lot.
In the year 1974 Robert takes comes out of his marine-cop job in Vietnam and starts learning his investment lessons from his ‘Rich dad’. The book consists of three parts. The first part Robert discusses about four major elements of personal finance. They are ‘Income’, ‘Expenditure’, ‘Assets’ and ‘Liabilities’. He explains how rich people make their ‘Assets’ generate the ‘Income’ and how poor people spend their lifetime by paying up for the liabilities. In the second part Robert explains his ‘Cash-Flow-Quadrants’ in which he classifies people into Employees (E), Small Business Owners (S), Business Owners (B) and Investors (I). He clearly shows how people take the E path and remain poor and how his rich dad took the B path and built wealth. He also talks about personal financial statements, tax and other legal aspects.
In the third and most interesting part Robert talks about ‘Entrepreneurship’. He explains various aspects of building businesses. This section is excellent and inspired me a lot. Finally Robert concludes with stressing the importance of ‘Ultimate Investor’ where an individual builds a business and takes it into public. The first two parts are kind of repetitive and Robert tries to talk the same thing again and again. But I somehow feel in order to understand the ‘Financial-literacy’ this book is a must read mainly because it is simple at the same time makes the reader think a lot.
Comments
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Then I picked up his second book "Cashflow Quadrants". I really got bored after reading few pages. if you leave aside his assets and liablity explanations, I found same sentences and same stuff which I had read in his earlier book. I gave up :-)
Not sure about his 3rd book. Again my personal opinion ;-)