# Rich Dad, Poor Dad



## stockmachine (21 April 2006)

Someone from the PriceMotion staff recommended Rich Dad, Poor Dad. IS that a book or program??


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## RodC (21 April 2006)

It's a book by Robert Kiyosaki.

There's several in the series.


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## Knobby22 (21 April 2006)

It's a book. I recommend it too, though some of his politics and prose is pretty ordinary the basic facts he pushes are very true.


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## macca (21 April 2006)

Most libraries would have it in there investment section, along with 30 or 40 similar books. 

They are all written to provoke thought about where are you going in life and what do you want to achieve and how are you going to do it................in other words motivation to achieve the goals you have set yourself after reading the book  

For a lot of young people this type of book can be a real eye opener 

PS: You could also try second hand book shops and garage sales


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## keebab (21 April 2006)

Or Limewire File Share (cough cough) did I say that? <Disappears>


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## clowboy (21 April 2006)

should be able to pick up a copy from a second hand bookstore for $10 in good condition.

Worth it's wieght in gold


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## the_godfather4 (21 April 2006)

Great book but beware the subsequent and many sequels.......they basically say the same thing over and over and over again......


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## stockmachine (18 June 2006)

I have done a lot of research on technical side of markets on the internet recently and I would like to share them here with you all.

So to begin I would like to start with software

TA software  
http://www.amibroker.com
easy to use.

For Advanced users 
WealthLab3 
http://www.wld3.com

I was looking for many simulations teaching how to trade.
for training and learning
http://pricemotion.com/
PriceMotion's new version is much better. It has many features.

Dynamite Sentimentor
I found it to be excellent in simulation mode. 
http://www.fipertec.com

please reply with your comments. maybe I missed some great stuff.


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## swingstar (18 June 2006)

It's worth a read by anyone. No real practical advice though.


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## cuttlefish (18 June 2006)

I think there's some valuable messages in Robert Kiyosaki's book(s) - especially if you're young.  rich dad poor dad gives some pretty good examples of counter cyclic and value based investing (in property not shares). 

The cashflow quadrant also gives some good insights - particularly about the difference between making a lot of money versus investing and sustaining wealth over the long term.  I think he goes overboard with the focus on cashflow but its a good message to absorb.   

Most of his books are about property investment and some simple truths can be learnt from them (though probably a bit late given that there's very little good value property around at the moment in Australia), but will be relevant in the years to come.  I'd ignore the stock market sections of his books though (at least one of them had a bit about equities) - I doubt he wrote them and the advice was pretty ordinary.


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## The Mint Man (19 June 2006)

Got hold of this book the other day..,. half way through, 
also got 'Guide to investing' anyone read that? what is it like? I'll get around to reading it this week sometime.

I have found 'rich dad poor dad' very good so far but I could see someone that takes things to heart putting the book down within the first chapter due to his style of getting the point accross. You have to be prepared for some constructive criticism if you want to lean from this book.
 
Mint Man


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## LPA (19 June 2006)

Although I did like his book about investing, as I was completely green when I read it, I have heard some interesting things about him.

Do a search on google to double check all of this, but apparently his books became top sellers when he broke into selling to the MLM (Multi level marketing) scene.  Also, allegedly people have done checks on his stories and can't find any trace of this 'rich dad' that lived next door.  It all seems like a big marketing scheme to me....throw together some common sense analogies about investing and get all your MLM peons to buy heaps so that it gets on best seller lists then just churn out book after book.


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## Prospector (19 June 2006)

I read his books several years ago, and while I agree with the concept of passive income, I wonder if the concept of earning money without the effort comes across as an easy (lazy) solution for some Gen X and Gen Y youth.


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## The Mint Man (19 June 2006)

LPA,
done search and came up with these links
heres the one I think your talking about http://www.johntreed.com/MLM.html 
and heres Robert Kiyosaki's Response http://www.mastermindforum.com/kiyosakiresponsetoreed.htm 


> apparently his books became top sellers when he broke into selling to the MLM (Multi level marketing) scene



Ok, but do you agree with whats in his books? if you dont have a problem with it then it shouldnt matter how it became a best seller IMO.

How do you think most pop stars make their music popular? simple, they sell it to places like Kmart, BigW, HMV etc. in the thousands so that they get to No.1 on the charts. If the people like it then a career is started otherwise the retail outlets send them back to be destroyed.
Not much difference IMO.


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## Ageo (19 June 2006)

Probably the best financial educator going around.

why? well he basically defines the differences on 2 sides of the quadrants (cashflow quadrant is my fav book of his). And how to get money working for you instead of you selling time for dollars. If you look at the rich in this world you will notice a common thing that they usually make more and more money with the same amount of effort. Tell that to a bricklayer that he can make 10x his income and not work extra and he will tell you to visit a mental institution.


The difference between a poor mentality and a rich mentality.

(P.S the reason i used a bricklayer as an example is because my dad is one and i have worked with him and have had those responses).


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## cuttlefish (22 June 2006)

Ageo said:
			
		

> why? well he basically defines the differences on 2 sides of the quadrants (cashflow quadrant is my fav book of his).




Yeah I agree I found cashflow quadrant was a pretty good read and gets some good principles across in a simple manner.


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## TraderPro (29 June 2006)

Knobby22 said:
			
		

> It's a book. I recommend it too, though some of his politics and prose is pretty ordinary the basic facts he pushes are very true.




I recently stumbled upon a website that goes about discrediting Kiyosaki's Rich Dad Poor Dad. I used to be a believer but now I'm not too sure. John Reed presents a very convincing case on his website:

http://www.johntreed.com/Kiyosaki.html

I've read through the whole document... it took quite a while (you'll see what I mean) but very convincing - he seems credible and plus the website with all that evidence has been around since the book was first published.

Make your own mind up...


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## Hopeful (29 June 2006)

Summary of book:

1. Set up your own business (corporation is preferred due to tax advantages).
2. Find people to run and manage the business whist you go fishing.
3. Find a good stock broker, do what they tell you and pay them well when you make money.
4. Find a good R/E agent who will find positively geared investments for you, pay them well for their advice.
5. Make silly offers on R/E until some poor desperate sucker throws in the towel and hands over his property to you for half the market price.
6. Look outside the box to find opportunites that everyone else misses. You have to train your mind to do this then you will have special goggles.
7. Go to investment courses - even if you are out of your depth. Actually, go to any course/seminar to get ideas for the next big thing.

Did I miss anything?


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## srivest (29 June 2006)

It's right on my desk at the moment, I finish reading it yesterday. I think what he says makes a lots of sense whether it's a real story or not doesn't really matter to me. 

A good educational entertaining read.


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## happytrader (29 June 2006)

Here is a very important point that most people miss.

Associate with like minded people who support your new identity and beliefs.

I am sure nearly everyone has heard of lotto winners who have returned to their former means of existence in a matter of afew years. So why is that you wonder? Could it be that they had some underlying beliefs that did not support having money? 

Did they unconsciously divest themselves of it in all sorts of creative ways to return to a state of what they believe is 'normal' for them - an immune response? Remember the brain is goal directed so be careful what you wish for.

Cheers
Happytrader


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## clowboy (29 June 2006)

I havent finished reading that article but I would have to say it seems like a case of going from one extreme to another.  I know many people that are extremely sucessful and have limited education.   Bill gates is an example that springs to mind.  As for the book being fiction.  So what?  The richest man in babylon is a book of tales also, is it not.....still an important read.

At the end of the day the 15-20 odd dollars that the book cost is unlikely to send you broke and if it contains just one sentence that helps you build wealth then it is a bargain IMO


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## professor_frink (29 June 2006)

To anyone thinking about buying this book-

Don't bother.

Here's my tip, it won't cost you any money or time wasted reading a largely useless book- spend less than you earn each week, fortnight or whatever. Invest said surplus income. Repeat. That's about all there is to it. You don't need to buy a book from a "guru" to learn this.


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## Ageo (29 June 2006)

professor_frink said:
			
		

> To anyone thinking about buying this book-
> 
> Don't bother.
> 
> Here's my tip, it won't cost you any money or time wasted reading a largely useless book- spend less than you earn each week, fortnight or whatever. Invest said surplus income. Repeat. That's about all there is to it. You don't need to buy a book from a "guru" to learn this.





Frink thats harsh to say. As for me personally it has made me alot of money in the way i think. Personally if it wasnt for that book i would be working a job. 

As simple as the book may seem he puts it into a very easy to read perspective. Some people need that.

Put it this way if he's helping people then isnt that a good thing? I go out with my mates and blow $100 for what? a good night out. $40 is not a large investment.


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## professor_frink (29 June 2006)

Ageo said:
			
		

> Frink thats harsh to say. As for me personally it has made me alot of money in the way i think. Personally if it wasnt for that book i would be working a job.
> 
> As simple as the book may seem he puts it into a very easy to read perspective. Some people need that.
> 
> Put it this way if he's helping people then isnt that a good thing? I go out with my mates and blow $100 for what? a good night out. $40 is not a large investment.




It is critical, but I don't think it's unreasonable. If you follow the simple rule of spending less than you earn, and then invest any surplus, then you don't really need to read the book! I say spend that $40 on a book that will further your knowledge of investing, don't spend it on something like rich dad poor dad. Can you tell me ageo, exactly what ideas did you get from the book? I'm trying not to be too critical of you, so please don't take it that way! I'm just curious as to what he says that has specifically helped.


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## Ageo (29 June 2006)

professor_frink said:
			
		

> It is critical, but I don't think it's unreasonable. If you follow the simple rule of spending less than you earn, and then invest any surplus, then you don't really need to read the book! I say spend that $40 on a book that will further your knowledge of investing, don't spend it on something like rich dad poor dad. Can you tell me ageo, exactly what ideas did you get from the book? I'm trying not to be too critical of you, so please don't take it that way! I'm just curious as to what he says that has specifically helped.





Ok well the best story in the book is about the Villagers who 1 man carried buckets of water to a town to make money and the other 1 creak a pipeline to river. The person building the pipeline took much longer but eventually once set up water was continuous as was the money flow.

There are many positives he taught me but here are a few examples:

* Dont work for money let it work for you

* The difference between exployers/self-employed/businessman/investors

* Money doesnt make money it just multiplies it faster. We make money and if we teach our brain that than money can be made anywhere.

* Basically he not teaching you to invest but rather educating you financially (manage your money etc..)

They are the main points that i took which have allowed me to not work a job (im 22) and not only that but to have lots of time up my sleeve.

So $40 was priceless to me.

Adrian


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## tech/a (29 June 2006)

Agree with the Prof on this one.

Its a very basic book for those who are just above the capability of preparing a household budget.

*Its not how much you earn but what you do with it*

Saving is the very first step in the very true adage of

*Money Makes money*

The exponential rise in your wealth from the best use of your money and in the end other peoples can only come about from a capital base,its really that simple.

Anyone in Business knows the power of using others money---trick is to be able to have it work for you well in excess to what its costing you.

Simply.

If you had a way of consistently gaining 15-30% a year and you can get Money from lenders at 8-9%---why wouldnt you borrow to the maximum you could get---reveiw every 12 mths and retire early!


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## Ageo (29 June 2006)

tech/a said:
			
		

> Simply.
> 
> If you had a way of consistently gaining 15-30% a year and you can get Money from lenders at 8-9%---why wouldnt you borrow to the maximum you could get---reveiw every 12 mths and retire early!




I dont see a problem with that and i know of people (personally that do it) hehe including myself   

Been doing it for now over 2 yrs


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## professor_frink (29 June 2006)

I'm glad you got something out of it ageo. Apart from learning how to manage your own personal finances(which I've already stated doesn't need an entire book), I think the book is borderline irresponsible. 
Is it possible to get rich? yes.
Are there secrets rules that the rich follow? No.
Is getting rich as easy as the book implies? No.
Do "rich" people not get an education so they can solely concentrate on wealth creation? No.
Do I think the book could be a danger to one's potential wealth? Yes I do. 
I believe that giving that book to a high school student who is starting to make plans for their future would be a very irresponsible thing to do. The impression he gives in that book is that people who go to school and get an education are involved in the "rat race", a very undesireable thing for the "rich".
For me the most dangerous part about it, is that it combines alot of motivation, without the specifics of how to go about it. Meaning that there will be people who read this, think they know about wealth creation, and run off making bad decisions because they don't have the skills to do so. Phrases such as "Dont work for money let it work for you" are all well and good, but it doesn't actually mean anything without a strategy to go with it.

I'm sorry if I sound harsh here, but I hated this book almost as much as "what I didn't learn at school but wish I had". Utter nonsense both of them. And no surprises, rich dad poor dad was on the recommended reading list for that book.


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## Ageo (29 June 2006)

professor_frink said:
			
		

> I'm glad you got something out of it ageo. Apart from learning how to manage your own personal finances(which I've already stated doesn't need an entire book), I think the book is borderline irresponsible.
> Is it possible to get rich? yes.
> Are there secrets rules that the rich follow? No.
> Is getting rich as easy as the book implies? No.
> ...





Frink everyone has there views on differenct things and thats fine mate. For some people it could be a bad thing but for others it could be a winning lotto ticket. Thats why its good to have so much choice out there, that way you can choose whats good for you and whats not. 

P.S up 18 points with materials atm so im in a happy mood.


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## professor_frink (29 June 2006)

ageo said:
			
		

> Frink everyone has there views on differenct things and thats fine mate. For some people it could be a bad thing but for others it could be a winning lotto ticket. Thats why its good to have so much choice out there, that way you can choose whats good for you and whats not.




Fair enough. The person who originally asked probably should just go out and read it. Probably the best way for them to find out.



			
				ageo said:
			
		

> P.S up 18 points with materials atm so im in a happy mood.




Congrats mate! I hope it continues to go well for you


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## Ageo (29 June 2006)

professor_frink said:
			
		

> Fair enough. The person who originally asked probably should just go out and read it. Probably the best way for them to find out.




That is probably the best way if there is 50/50 good/bad response.




			
				professor_frink said:
			
		

> Congrats mate! I hope it continues to go well for you





Thanks mate, i have been noticing the end of day breakouts lately. Interesting........


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## cuttlefish (29 June 2006)

Prof Frink I'm curious whether you've actually read the book?

I'm not going to hold it up as a bible or anything, but I've been a good saver and investor for many years and still found the book a worthwhile read.  I wouldn't hesitate to give it to a teenager to read. I've certainly obtained real value from the messages contained in it.

The main areas that I found useful were some insights into the value of looking at cashflow when investing,  the old chestnut concept of counter cyclical investing is also touched upon but with a slightly different slant (i.e. to some extent helps to safely identify the difference between a countercyclic opportunity and a dead horse). Exploring the differences between earning a lot of money, having a lot of money, and keeping a lot of money are worthwhile as well.

I would also say I don't think he's down on education - he makes the point that if you're going to get educated know why you're doing it.

Most of the message he teaches probably are commonsense to an experienced and wealthy investor, but the reality is those people are a small proportion of the population, so for the rest of the population there's useful stuff to be learnt from this book.


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## professor_frink (29 June 2006)

Yes cuttlefish I've read the book  
It's interesting that you still found it useful even though you already saved and invested. I'm with tech- I think it's a very basic book aimed at people with little or no financial knowledge. I still think there are comments in there that can be damaging to people with that level of knowledge. No wonder amway are a big fan of his work! Giving people the idea that they can be financially successful and providing very little insight into how to go about it can be a dangerous combination.



> i go to seminars. I like it when they are at least two days long because I like to immerse
> myself in a subject. In 1973, I was watching TV and this guy came on advertising a three-day
> seminar on how to buy real estate for nothing down. I spent $385 and that course has made me
> at least $2 million, if not more. But more importantly, it bought me life. I don't have to work
> for the rest of my life because of that one course. I go to at least two such courses every year.




Combining this kind of comment with the last property boom, is it any wonder that people like henry kaye found so many suckers with their dodgy seminars.



> there are forms of insider trading that are illegal, and there are forms of insider trading that
> are legal.




This is specifically the kind of comment that should be kept away from financialy illiterate people.



> The reason I minimize my income is because I don't want to pay it to the government.




This kind of coment, and the ones above are why I wouldn't recommend noobs read it. If I had a son and wanted to start him on some financial education, I wouldn't want him reading that. what I would possibly do, is condense it down and eliminate all of this kind of rubbish, as well as get rid of most of the waffle in the book(and I think there is alot of that!). I'd be left with about a 20 page long summary of the whole book. So I guess by saying that, I am conceding that there is some good information in it, so I'll concede that my earlier comments may have been a touch harsh!



> if you watch CNBC, which is a goldmine of investment information,




This was one I found tonight whilst skimming through for some quotes to illustrate my earlier points. Whilst I'm not directly critical of this comment, as  cnbc does contain investment information, it will also have the side effect of turning viewers into permabulls who think the bullmarket will run for ever. "mad money" indeed folks


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## wayneL (30 June 2006)

professor_frink said:
			
		

> Whilst I'm not directly critical of this comment, as  cnbc does contain investment information, it will also have the side effect of turning viewers into permabulls who think the bullmarket will run for ever. "mad money" indeed folks




LOL Amen!!


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## pacer (30 June 2006)

Yeah man, big ides to confuse the little man, but nevertheless a motivational book too, had read two of his books  and realised I'm better at gambling than invesing SO I PLAY THE STOCKS AND WIN MOSTLY (except for on nuenco, but have just bought back in)

BUT there are also alot of deals and profit still to be made if you buy in the right spot at the right time.....just take this for example.....

My mate asked me if he should buy this 80k 4brm house in Newman 3 years ago when we were working there, I said..........


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## pacer (30 June 2006)

Cntd...........buy it.......stocks and land are up...... and now it's worth 450k
in 3 years, and paying $500 per week in rent!!!!!!!!!!!


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## cuttlefish (30 June 2006)

prof frink - fair comments - I must admit I didn't recall any of those statements in the book so maybe I did a fair bit of subconscious filtering as I went through it. I might have a look through the books again, I do recall a fair bit of repeitition like most books of that nature, but I also know that I've gotten value from the book.  I don't think that he's got anything to offer in relation to share investing (and the parts of his books that talked about this were pretty much waffle as I've said earlier in this thread), but I did find that some of the stuff in relation to both property investing and overall focus on cashflow did cause a change in some of my thinking about certain area's of investment.

To some extent, an unsophisticated investor is at risk from any kind of book they read, the only way of truly learning is to do it, and if a book stimulates them to have a go then thats probably a good thing. Until someone loses money that they've worked and saved hard for they probably don't truly undertsand investing lol. But the comments you've lifted out are definitely not helpful. 

Something that annoys me about the Henry Kayes etc. of the world is that someone somewhere funds this sort of irresposible activity - and surprisingly often it turns out to be the banks - either directly or via mortgage brokers. In the same way as during the 80's they irresponsibly lent to 'entrepenuers' for leveraged buyouts at the height of speculative idiocy that failed,  they are now lending to 'entrepeneurs' that are doing leveraged property investments at the height of speculative idiocy that (surprise, surprise) also fail.   I'm always amazed that these institutions also never seem to learn.


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