Insights on Robert Kiyosaki’s Guide to Investing – Chapter 37

20161106_034730.jpg

And now after covering the three phases that answers most of an aspiring entrepreneur or investor’s question, we proceed to the fourth phase of the book that asks “Who is a sophisticated investor?”. If you are a consistent follower and reader of these insights I am giving from chapter to chapter, you already know what a sophisticated investor is from Chapter 24.

But why is there another phase dedicated on what is a sophisticated investor? Because it is the easiest and most conservative way of becoming rich. If we would only know what the lawyers and consultants know, or even just a glimpse of their knowledge and background in business, we can use the knowledge for our own benefit. The book itself has illustrated a scenario that demonstrates how the knowledge in laws would be favorable in the business. After realizing it, I was amazed as well as encouraged to go and build my own business. If only existing business-owners would know what is in store for them, they might just get a consultant in an instant.

That’s too much of an introduction on the fourth phase. I haven’t even mentioned the title chapter for this one. Moving forward, the chapter discusses about “How a Sophisticated Investor Thinks”.

As I mentioned in Chapter 24, a sophisticated investor is someone with the three E’s or Excess Cash, Experience and Education. The thing I failed to mention and elaborated was on how the Sophisticated Investor thinks. I never planned it, but it brings me favor that you have to read through but we should take note what are the ideas inside the head of a sophisticated investor.

If we are to observe, most businesses had their own tax lawyers and resident specialists that help them on matters with the authorities. Tax can be the most burdensome expense for a business because it does not benefit the business, but like every costs, it can be minimized with the help of experts and that is the mindset of sophisticated investor. He is always thinking out of the box. He doesn’t go for the usual but rather for the unusual. He would think of something that was never done before and consult his lawyers for comment on the legality and effects on the business. Something that only a few could do.

Do you something in your mind that could benefit you and your business but is not sure on how to do it legally? Are you implementing something for your business but is doubting the legality in the future? There are a lot of legal questions a business should answer for themselves. Legal issues can make or break a business, which is why being a sophisticated investor should always be a consideration in planning to be one among the 10% of people who earns the 90% of the money.

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

Advertisements

6 thoughts on “Insights on Robert Kiyosaki’s Guide to Investing – Chapter 37

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s