Insights on Robert Kiyosaki’s Guide to Investing – Chapter 12

Business and Beyond, , , , , ,

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It has been a couple of days without writing and I already felt the guilt. There will really be times like this that we had to do real life duties in expense of our planned objectives for the day. As much as I wanted to write for the last couple of days, I wasn’t able to do so for various reasons which is why I am sorry for those who are waiting for me to give my insights on the next chapter.

Chapter 12 with the title “Why investing isn’t risky?” is a very short chapter of about three pages. Instead of giving the reasons why investing isn’t risky, it cited three major reasons why many people think that investing is risky, but the best thing I’ve learned in this chapter was the hints given by the author.

The first hint was that in order to know more about an entity, instead of investing from the outside or through the stock exchange, Mr. Kiyosaki and his rich dad recommends investing from the inside. Another hint was that brokers and fellow traders in the stock exchange are also outside investors who only know a few things about the publicly traded shares of stocks but might not know what was really the standing of the entity itself.

From those two hints, I have thought that the track rich dad and Mr. Kiyosaki wants us aspiring investors to realize is that if we wanted to be good investors, we should look to invest as a business owner rather than looking to gain from the market changes. It makes total sense because once you become a stock holder through the stock exchange, you are still a stranger to an entity even if you had a few number of its shares.

It’s employees, officers and even production sites would not welcome you in an instant by just having a certain amount of their shares. It is clear that what the author wants to emphasize by investing from the inside is to be involved in the decision making, operations and programs of your chosen entity. You should learn their ways and how they do business rather than depending on the little changes in the market value of the shares you hold.

In short, the author wants us to think like entrepreneurs because it is the path where we can learn a lot and adopt concepts and practices that we can use in the future if we chose to establish our own businesses. Depending on market changes through speculation is not a sure thing whereas knowing the plans and status of the business you are interested to invest into is a better option. The author also said that he is to elaborate what investing from the inside means on the next chapter, let’s see in the future if I am now having the grasp of the book itself.

NOTE: IF YOU MISSED THE EARLIER CHAPTERS HERE ARE THE LINKS: