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Robert Kiyosaki Why the Rich Get Richer

Robert Kiyosaki, Why the Rich Get Richer

Future Tense

by Robert Kiyosaki

Good (681 Ratings)
2.644642/5
Posted on Thursday, December 20, 2007, 12:00AM

Most financial advisors say you can't predict the future. These experts claim you can't pick a market's top or bottom. And since you (or they) can't predict the future, they advise that you just leave your money with them for the long term.

For most people, this is good advice. But for those who want to get rich, being ahead of the future is one of the best ways to amass wealth.

The best way to predict the future is to study the past, or prognosticate. My rich dad often said, "There's a difference between a fortune-teller and a prognosticator." That's why he encouraged me to take the study of history seriously.

Read the Future

Starting in the fifth grade, my development as a prognosticator began with the study of the great explorers such as Columbus, Cortez, Pizarro, Marco Polo, Magellan, and others. They traveled the world in search of gold and international trade, and I try to follow in their footsteps.

Over the years, I've read some great books on economic history that have opened my mind to the world we face today. Some of the books that have altered my vision of the future are:

"Critical Path" by R. Buckminster Fuller: Not an easy book, but one of the best I've ever read; it changed the direction of my life. Even though Fuller died in 1983, his predictions are coming true today.

"The Worldly Philosophers: The Lives, Times and Ideas of the Great Economic Thinkers" by Robert Heilbroner: This book is essential for anyone who wants to see history through the eyes of economists. A very interesting read, even though it's somewhat dated.

"The Dollar Crisis: Causes, Consequences, Cures" by Richard Duncan: This book is essential reading for anyone who wants to survive the next 20 years. It explains why the world is entering a global financial crisis, and explains why savers are losers.

World-Class Prognostication

I also follow the prognostications of James Dale Davidson and Lord William Rees-Mogg. Their 1987 book, "Blood in the Streets," predicted that year's stock market crash and the bankruptcy of the savings and loan industry. When their forecast came true, millions of average investors who had followed the standard advice to "invest for the long term" lost billions of dollars. But the 1987 crash made me millions, because I followed the advice of these two prognosticators.

Their next book, "The Great Reckoning: Protecting Yourself in the Coming Depression," predicted the break up of the Soviet Union, as well as the secession and break up of Yugoslavia and the ensuing tragedy of ethnic cleansing.

In 1997, my wife Kim and I were invited to Washington, D.C., for the launch of Davidson and Lord Rees-Mogg's latest book, "The Sovereign Individual." Many dignitaries, business leaders, and investors were there. Obviously, we had all gathered to listen to the authors' predictions for the year 2000 and beyond. Until then, I thought I had a pretty open mind. But as we listened to their predictions, Kim and I had a tough time grasping the magnitude of what they had to say about the near future.

Predictions Come True

As the saying goes, "Your mind is like a parachute -- it only works when it's open." Rather than object, question, and criticize -- as many in the audience at that reception were doing -- I simply took the book home and studied it. And the closer I studied it, the more I realized it was similar to past prognostications. As a result, between 1997 and 2000, I radically altered my thinking, my businesses, and my investment strategies.

In previous articles for Yahoo! Finance, I predicted the real estate crash, the fall of the dollar, and the rise in commodity prices. In future pieces, I'll continue to keep my mind open and peer into the future. In the meantime, if you're anxious to see what's coming up in finance, I recommend reading "The Sovereign Individual" and "The Dollar Crisis." Yesterday, these books were about the future. Today, they're about today.

In closing, remember that there is a difference between a fortune-teller and a prognosticator. I'll see you in the future.

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219 Comments

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  • Yahoo! Finance User - Friday, August 14, 2009, 12:21PM ET  Report Abuse

    • Overall: 5/5

    Very interesting, still the most iportant coming event is the coming of Jesus Christ!

  • Stoneface - Wednesday, June 3, 2009, 2:10PM ET  Report Abuse

    • Overall: 1/5

    • OK, We all know that this waste of space is a KOOK. Frankly, I am somewhat pissed at myself for wasting my time to write a comment here. From now on I will only sign in, rate his article as Poor (without even wasting my time to read it, because it won't say anything anyway, as we all know) and leave this weblink, http://www.ripoffreport.com/. Aside from the fact this kook (or whomever is writing this crap for him) has not the slightest idea of what they are talking about (shame on you once again YHOO), it is so vague, and back and forth, and wishy-washy, anyone who follows this ill-conceived "advice" is obviously retarded, "a fool and his money"..... Once again, http://www.ripoffreport.com/. What makes this Kook an "expert"? Where are this guy's credentials? Anyone who is worthy of giving people advice has credentials. They need to go to school for it, get licensed to do it, maintain mandated education to continue to do it i.e. Doctors, Lawyers, CFP, etc. Where is the proof this guy is legit? (Uh, don't bother looking, it's not there) Where is his education (again, don't bother), one certainly cannot decipher any from what is written here. And they certainly keep it so obscure that it can be said it is not advice at all (nice way to cover your a*s) but still put it out there as such. Hey Yahoo, I want to write an article for you too, I will call it "Don't get burned, because only the burned get burned when they allow themselves to get burned by somebody who burns them, I told you not to get burned". I think everyone can get something out of that one. Once again, http://www.ripoffreport.com/ I also love the fact that Kiyosucki has employee "article watchdogs" that counter every "Poor" rating with a 5 star rating so that the overall avg for this useless crap article always maintains around the "Good" level. You can tell because most of them say something short and uneducated like "great article" or "you always tell the truth RK", or "all the RK bashers are just jealous", rarely citing any points of why the article was good. Some try, but all of us with brains see right through their feeble attempt to sound educated. Though they are trying to come up with new ways to sound like this crap actually has value. Salespeople in the making! http://www.ripoffreport.com/ It may sound like I personally got ripped off by this Kook, but I am happy to say I have never spent dime one on any of his crap sales products. I just find it a shame that this guy is put out there as legit by Yahoo, with no formal or professional education and no accountability to what consequences he causes for others. http://www.ripoffreport.com/, he is only pushing his useless books and seminars. Good job, Bob, ya kook. The most enjoyable aspect to the word-formed paragraphs above, by someone nowhere near an "expert", put out by Yahoo ( I cannot muster the strength to call them "articles" anymore) is the forum comments (Could be the only reason why this crap is still allowed to exsist here). I will enjoy the banter in the future. http://www.ripoffreport.com/

  • Sharp - Sunday, December 21, 2008, 1:52AM ET  Report Abuse

    • Overall: 5/5

    Can't refute any of these arguments. Nope. None. Those with negative comments, just wipe your windshields from the crap they's recovered under or get your head out of the ground, whatever the right sentence is. When the time comes, please don't blame it on the wealthy OK? But you morons will, so I am out of here. Ciao!

  • Yahoo! Finance User - Friday, June 6, 2008, 10:04AM ET  Report Abuse

    • Overall: 1/5

    Anyone with a tenth of the wealth that RK claims to have wouldn't waste time writing two-bit columns for Yahoo Finance. Unless of course, he does it out of a sincere desire to help others (gag)

  • Srini Dodd - Friday, April 25, 2008, 3:37PM ET  Report Abuse

    • Overall: 5/5

    World deals with un foreseen events in all parts of life.Hence forecast has always been a wild guess and left no impression on decision making.Effective utilization of returns from either side of the coin stands tall.Richness and poverty are not dedicated to any individual.Volatility prevails in many areas where change is inevitable and structure of business lacks fundamentals of foresight.Surplus in supply resulting in excessive production is taking a toll on world economy.If you consider any automobile,minimum standards and bench marking has been achieved by few makers.Rest of them are still wary of the facts and dumping shaped iron oxide onto the public.A standard from SAE or ISO specifies deliverables like mileage,safety,reliability.Many autos are far below expectations of 30 MPG.Still people are buying them.What makes those inferior autos a piece of junk to be part of this universe?.A chip maker knows he is going to use 30 nm wafer or 20 nm next year.He knows architecture would be changed next year.Still produces inferior product of date till new product arrives.Who is going to stop this.He thinks it is his business.Similarly,when world is catchingup to a next generation life style,what is the sense in promoting 19th century products ?.Technology giants do not hold 80% of wealth of world.MSFT valued at 50 Billions.The amount lost in mafia undertaking of real estate fire and flood fuel toys(16th century columbus era designs at 500% cost hike) is whopping 1.5 Trillions.One can establish 30 such companies feeding atleast 1 billion people directly or indirectly.Whether there is a common goal among all companies culminating redundancy or not,that wastage is not in the vicinity of 100 Billions a year.One should get rid of that wastage as well.So we are rich means in what sense?.

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