Who Took My Money? by Robert Kiyosaki

I have not read Kiyosaki's books for quite a while as after reading a few, one tends to know that he keeps repeating the same theory; the Cashflow Quaduant. One of the reasons I bought this book was it was on sale and the sub-title interest me. It is "Why slow investors lose and fast money wins!". I am interested in what are considered slow investors and fast money to the rich.

In this book, there are the 5 steps in investing; 1) Earn/Create, 2) Manage, 3) Leverage, 4) Protect & 5) Exit.

Earning and creating are what our education system teaches us to do. We learn our profession to earn our keep. Managing our money is when one learn from his/her financial education, where he/she learns the difference between assets and liabilities. Leveraging other people's money to work for you is how we don't need "money to make money". The rich always "protect" their investing with some form of insurance. For example, they hedge their equity with options to minimize their loses if the market nosedives. And lastly, all brilliant investors ahve to have an exit strategy and this is considered the most important of all investing rules.

There is a chapter on reasons why some people can't be power investors. The 4 reasons are 1) The power of the word "can't", 2) The power of easy, 3) The rich make it easy to be poor & 4) Investing without guarantees. Very short chapter but I can see all my flaws in all 4 reasons. Hope to change them soon.

There are 3 major assets one hold as investments; business, real estate and paper assets. Kiyosaki believes that having all 3 assets classes has the best chance of making it rich

Kiyosaki's rich dad also taught him the 20-10-15 cycle. He says that the stock market dominates the investment market for 20 years and as the 20th year approaches, the possibility of a market crash increases. After the carsh, the stock market tends to stay down for 10 years. Every 5 years, there is some kind of major disaster.

Overall, I would say that though there are still repeated stuff in this book, there are still some worthwhile new stuff.