Guide to invest of Robert Kiyosaki

2 December 2009 - 17:18

The following one is a brief summary of the guide of investment presented/displayed by Robert Kiyosaki through its books, especially its book guides to invest, and other means; guide whom it tries to help the people to become investors who generate wealth and reach the financial freedom.

In order to begin, we will say that Kiyosaki affirms that two types of investments exist: assets that are created or bought soon to sell, and assets that to be created or buy so that they generate to him to one a cash flow:

• Assets that are created or bought soon to sell: they are assets that, generally, are bought at a low price, with the hope of which with time they are appraised (it increases his value), soon to sell them to a price greater than the price of purchase, and to obtain therefore a gain. For example, one house that is acquired to be remodelada, and soon to be sold to a price greater than the price of purchase.
• Assets that are created or bought so that they generate to him to one a cash flow: they are assets that are created or they are bought with the intention of which they generate to him to one an immediate gain based on the generation of a cash flow. For example, one house that is acquired soon does not stop to be sold, but to rent it and to thus generate income by rent. Other examples of this type of assets or investments are the businesses, real estate, the actions and the obligations.

The correct form to invest according to Kiyosaki, if it is tried to reach the financial freedom, is second; that is to say, one is due to look for to invest in assets that they generate to him to one a cash flow, and not to buy for soon selling; in other words, for Kiyosaki one must look for that the gain of the investment occurs when it buys, and not when it sells.

A good investor must know how to look for, to identify, to analyze, to buy and to administer his investments in such a way that they generate a good cash flow to him; although sometimes also it is possible that it looks for to obtain gains to buy low and to sell stop, but, as long as, knows how and when to buy and to sell.

A good investor must know how to look for and to identify investment opportunities that have the following characteristics:

• they cost or nothing little.
• they present/display a low risk, but high performance.
• that they give back its money as rapidly as possible to him, while conserves the acquired assets.

Once identified an investment opportunity, the investor does not have to hurry in taking it, but she must be cautious, to inquire well on the investment, to study it and to analyze it, and, being necessary, contracting the services of professions that help him to evaluate the investment, they advise and it, mainly in subjects that do not dominate.

At the time of analyzing an investment one must consider the following thing:

• the true value of the investment.
• to make sure that the risk is the minimum.
• as soon as time will reclaim the inverted money.
• what income will obtain by the rest of their life after recovering the inverted amount.

But when analyzing an investment, one does not have to be a better one, but it does not have either to be so prudent or cautious, to the point to arrive at which it is denominated like “paralysis by analysis” that of as much analyzing something, in the end it finishes never doing nothing.

One must analyze an investment well and try to reduce all the possible risk, but it must know that no matter how hard tries to diminish the risk, this one always will be present, reason why it must have the value of taking the investment if this appears attractive, and of assuming the minimum risk that still exists, and the responsibility reason why can happen.

And to identify good investments and power to reduce the risk, an investor must improve his financial education constantly, must be permanently becoming qualified, studying, attending seminaries, taking courses. He must develop his financial ability to such point that can get to feel safe to invest so much in the good ones as at the bad times.

Finally, he is possible to stand out that to take the good opportunities investment, one must learn to use the financial leverage, but when doing it must be careful when accepts to get into debt itself, if one is get into debt personally, must make sure that it is a small debt, if contracts a great debt, must make sure that somebody pays more by her.

Labels: Personal finances, Finances

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