Friday, December 25, 2009, 3:14PM ET - U.S. Markets Closed for Christmas.

Robert Kiyosaki Why the Rich Get Richer

Robert Kiyosaki, Why the Rich Get Richer

Future Tense

by Robert Kiyosaki

Email this Page IM this StoryBookmark this StoryAdd to your Del.icio.us accountDigg this StoryPrint this Story
Good (680 Ratings)
2.64706/5
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.

Email this Page IM this StoryBookmark this StoryAdd to your Del.icio.us accountDigg this StoryPrint this Story

Rate This story

Good (680 Ratings)
2.5/5
Sign-in to rate!

219 Comments

Showing comments 6-35 of 219<< PreviousNext >>
Sort: first to last

  • Dallas Hybrid - Sunday, March 2, 2008, 11:51AM ET  Report Abuse

    • Overall: 2/5

    Seems to me that this guy is a promoter and his income comes from the sale of his books and board games. His books are good but just big picture general knowledge stuff. The purpose of him writing these articles, of no real substance, for yahoo is to keep his name in front of the general public to further promote the sale of his books and games.He's not a public servant...

  • Hoopsfan - Sunday, February 17, 2008, 8:35PM ET  Report Abuse

    • Overall: 4/5

    Robert has a lot of great information for those who open their minds. I never made a lot of money working a day job and after reading his and other books have followed their advice and now work about 8 hours a week just managing my investments. Robert can be very frustrating for more suphisticated investors because he doesn't supply the needed details to most of his ideas. The board game he sells is expensive but I have followed it and it helped me make some key moves in real estate. If you want a book on real estate that has specific details check out Jay P. Decima "Investing in fixer uppers". You aren't going to get anywhere with negativity. Keep reading, and make up a realistic plan and get your hands dirty in a project. Then read some more. If you never give up you will be a success sooner or later.

  • Blake P - Monday, February 4, 2008, 7:20AM ET  Report Abuse

    • Overall: 1/5

    Unbelievable how stupid this man is - he talks about knowing history, and then rails on long-term investors, saying that they "lost billions in the 1987 crash." If he really knew his history, he'd know that within months, the market completely recovered from the crash, and even ended the year with a gain. Only short-term speculators lost during that, or any stock market crash. Better study your market history next time rather than talking about Christopher Columbus. Idiot!

  • Roland - Monday, February 4, 2008, 2:02AM ET  Report Abuse

    • Overall: 5/5

    Hey Robert, excellent, excellent, excellent! You are awesome, I've read mostly all your books. In today's term, we call the naysayers, "Haters". I believe and agree with everything you say, now no one is perfect, we all know that. I love the fact that you agree with the business venture and the path I have chosen to take to achieve my Financial Security. So sir, keep up the excellent advice. As you can see, a lot of Haters like to stay nameless, lol. Good stuff, keep posting and I will keep reading and sending to all my friends.

  • Yahoo! Finance User - Tuesday, January 22, 2008, 10:01PM ET  Report Abuse

    • Overall: 1/5

    Only this retarded buddha boy quotes Warren Buffet and John Madden in the same article. You are so incredibly stupid it is beyond belief. In fact, you are so busy making money how do you find time to write this dribble? Do you market your books to special education children on the short bus along with Ben Stein and Suze? Hey Yahoo! Here's one of the 700 you can let go.

  • Dave - Tuesday, January 22, 2008, 12:02PM ET  Report Abuse

    • Overall: 1/5

    Wow. I started reading these columns yesterday. Stein now this clown. Does it get any better?

  • LONGTERMER - Tuesday, January 22, 2008, 10:16AM ET  Report Abuse

    • Overall: 3/5

    I have read two (2) of the writer's books and probably ignored every bit of good advice contained in both. Having so said, I believe he has a feel for making money. I do believe in studying the past in order to obtain a feel for the future; which no one can predict regardless of what they claim. Having once spent time as a broker, I agree brokers only want your money-period. It seems we just went through this "crisis" with the savings and loan industry...remember some twenty (20) years ago. So, read, study, and do your due diligence. My guess is most people, like lemmings, will do/react to what the general public is doing: selling when they should buy and buying when they should sit on the sidelines (note: I did not say sell although that is a viable option at the proper time). Having a grasp on how people have acted in the past (stock market, wars, etc.) will help one choose what to expect in the future.

  • s - Monday, January 21, 2008, 4:26PM ET  Report Abuse

    • Overall: 5/5

    Your right about "most advisors want your money" No one cares more about my money than I do, that's why I invest my own.

  • tommy - Monday, January 21, 2008, 1:59PM ET  Report Abuse

    • Overall: 5/5

    Remember when gold was $275 years back, I read on your website on which you recommended to buy gold. Back then I wonder... 'you are kidding me'... Well I did not act and don't have any money to act then. Now I'm 35 years old... Been an employee, made some windfall money and lost them all.. Now, still not much money, but I do listen to your audio now and then and hopefully will one day be Financially Free. Keep giving out your advice, I am one of those who will always listen Thanks.

  • George - Saturday, January 19, 2008, 1:49PM ET  Report Abuse

    • Overall: 5/5

    I am the wintness that RK predicted the rise in commodity prices and drop of US dollars, I am also the witness that PK have been told us that advisors are not helpful, my past fews years experience proved that advisors are working more for their own interest. I appreciate PK's honest and cadid. Thank you.

  • frank hu - Friday, January 18, 2008, 4:26PM ET  Report Abuse

    • Overall: 1/5

    no help.

  • hank - Friday, January 18, 2008, 2:46PM ET  Report Abuse

    • Overall: 1/5

    What a charlatan. Thank god I don't own any Yahoo stock. If they can't do any better picking columnist, they certainly can't pick good employees.

  • Yahoo! Finance User - Friday, January 18, 2008, 1:34PM ET  Report Abuse

    • Overall: 5/5

    All the people who shoot at what he's said about predicting the crash, go read Rich Dad's Prophecy, which was published in 2002. Its simple. If you dont like his advice, dont read it. Go buy some book with a name like 'how to become a millionaire in 3 days' and try that program. I'm sure you'll find it more inspiring. And for the 'experts' that have nothing constructive to say, write your own book about getting rich... if you know so much about it, what are you doing wasting time writing essays on what doesnt work in a random online article's comment section? Put your money where your mouth is, go self publish your own book and YOU go make it a NYT bestseller.

  • THE KANG - Friday, January 18, 2008, 1:12PM ET  Report Abuse

    • Overall: 1/5

    You predicted the real estate crash? Is that why you told everyone to buy real estate off crappy loans?

  • Yahoo! Finance User - Friday, January 18, 2008, 12:08PM ET  Report Abuse

    • Overall: 1/5

    Continues to embarrass Yahoo! Finance every time he publishes. What a fraud.

  • Yahoo! Finance User - Friday, January 18, 2008, 5:45AM ET  Report Abuse

    • Overall: 1/5

    Why is Bob still working? I thought he retired at 47. I guess he still has to hustle to sell all his books. Oh and check out this thoughtful analysis: http://johntreed.com/Kiyosaki.html

  • Yahoo! Finance User - Thursday, January 17, 2008, 12:07AM ET  Report Abuse

    • Overall: 5/5

    Great article, one more time Kiyosaki is giving an excellent advise. You losers can continue rating 1 star. 1 star maybe you guys work for the FED. hmmm...

  • Dean Y - Wednesday, January 16, 2008, 8:18PM ET  Report Abuse

    • Overall: 1/5

    He predicted the real estate crash??? Wow, that's like saying it's gonna be hot next summer! Anyone with a brain that wasn't trying to sell overly-priced homes knew that a correction was coming. Real estate, or any asset class for that matter, does not gain value by 25-30% (or more in some cases) in a year's time, in consecutive years, without having a serious reckoning period. Gee, 2 million ARM loans made to people with questionable credit are about to reset to a MUCH higher payment........."I predict a slump is coming"..........duuuhhhhh!!!! I used to like RK as a motivator, but if he is going to try to use these flimsy "predictions" as the basis for his "expert" credentials, I have to side with the 1 star folks. Pretty weak stuff.

  • Yahoo! Finance User - Tuesday, January 15, 2008, 12:00PM ET  Report Abuse

    • Overall: 1/5

    Rk links to booksellers for which he has an affiliate relationship. That is very bad. He is a book seller--plain and simple. He has no place here...he has a bias. He also does not disclose that his advise conflicts with his investment portfolio. that is very bad, in fact, it might violate the law.

  • farfel - Monday, January 14, 2008, 6:42PM ET  Report Abuse

    • Overall: 3/5

    i'm not so sure RK "predicted" what's happening today. in this regard he is more a follower than a leader. people like Peter Schiff and investor extraordinaire Jim Rogers have been warning us about these crises all along...

  • Sol - Sunday, January 13, 2008, 12:00PM ET  Report Abuse

    • Overall: 1/5

    Generic feel good advice for the sheeple of the world - which appears to be 75% of all Americans. No real advice, no real strategy for investments, but plenty of reasons to buy his books. This is a monthly infomercial.

  • AHAZ - Saturday, January 12, 2008, 1:00AM ET  Report Abuse

    • Overall: 3/5

    Mr. Kiyosaki, here are some notations and observations of mine. First, you have been incredibly blessed: to one a highly educated and professorial father, which you call your poor dad, and to also have someone incrediblly rich, which you call your rich dad, certainly gave you opportunities well beyond the average person's claim to richness. For example, my biological father had a second-grade education, and unfortunately, I never had a rich dad mentor me. Second, you have forgotten more about global finance and markets than I will ever learn. And third, your claims to be a prognosticator (fortune-teller) of global financial markets and to further be so sure that your way is the only way for intelligent and effective investing definitely entail thinking outside the box, maybe on the side of thinking that states the following: If it sounds too good to be true, then it probably________________. I will let you decide what comes next.... Your articles are intelligent, well-written, and provocative, and though they are most decisively one-sided, I do learn from your skewed perspective.

  • Raymond N - Friday, January 11, 2008, 9:15PM ET  Report Abuse

    • Overall: 5/5

    5 star stooges are better than being ignorant.

  • Jason - Friday, January 11, 2008, 7:12PM ET  Report Abuse

    • Overall: 5/5

    I took Roberts advice about silver (read a few articles ago, i think it was silver lining for nervous investors) and bought SLV when it was at $119.. now its over $160. Nay-sayers are retarded. You WANT to make things complicated and find wholes in everything. look at SLVs history if you doubt RK, and read his past articles if you want to know how his predictions are

  • Yahoo! Finance User - Friday, January 11, 2008, 5:28PM ET  Report Abuse

    • Overall: 1/5

    This article is pure crap. Don't buy gold, or cash, or real estate. Buy crap. Buy Robert Kiyosaki's books.

  • Yahoo! Finance User - Wednesday, January 9, 2008, 1:20PM ET  Report Abuse

    • Overall: 4/5

    I don't think there is anyone 100% correct about what the future holds. There is no such thing as free advice, either. Who said Yahoo was a reliable information source? You just have to make the right decisions based on what you believe is right.

  • GregoryY - Tuesday, January 8, 2008, 7:16PM ET  Report Abuse

    • Overall: 1/5

    our buddy bobby k claims that using a financial advisor is a losing bet, yet the average american investor doesnt use an advisor and has averaged just over 4% returns over the last 20 years. keep chasing those trends guys you will always lose money in the stock market lottery.

  • Yahoo! Finance User - Tuesday, January 8, 2008, 9:37AM ET  Report Abuse

    • Overall: 1/5

    Do people actually believe this guy? If so, the general public has an average 6th grade level of intelligence. What pure lame advice. Buy nickle, sell all mutual funds, buy plutonium, get rid of cash, all real estate makes you rich & O by the way: BUY MY GREAT BOOKS! ( people are such losers)

  • Yahoo! Finance User - Monday, January 7, 2008, 5:14PM ET  Report Abuse

    • Overall: 1/5

    Thanks for the spam there Joe!

  • Joe - Monday, January 7, 2008, 10:10AM ET  Report Abuse

    • Overall: 3/5

    Wow, there is plenty of gloom and doom to go around. You need a good plan to keep your head above water during the tough times. Here is a great, FREE, online budgeting application to help you do just that: http://www.checkthebudget.com

Showing comments 6-35 of 219<< PreviousNext >>
The columns, articles, message board posts and any other features provided on Yahoo! Finance are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Yahoo! and there is no implied endorsement by Yahoo! of any advice or trading strategy.

More from Yahoo! Sources

  • CNN Money
  • Consumer Reports
  • Kiplinger
  • The Motley Fool
  • Business Week
  • Wall Street Journal

Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data and daily updates provided by Morningstar, Inc. Fundamental company data provided by Capital IQ. Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.

Yahoo! Answers is provided for informational purposes only, and no Q&A is intended for trading or investing purposes. Yahoo! shall not be responsible or liable for the accuracy, usefulness or availability of any Q&A information, and shall not be responsible or liable for any trading or investment decisions based on such information. View Complete Answers Disclaimer.