Robert Kiyosaki Cash Flow Quadrant ESBIThis is part 4 (of 4). Go to part 1. Part 2. Part 3.



Be true to yourself, and do not follow the crowd, because in the market it is usually the crowd that show up late for a business. If a great deal is on the front pages, it is too late in most cases. Wise investors buy investments when they are not popular. They make the profit when they buy, not when they sell.



Becoming rich requires self-control, otherwise one makes money just to spend it.



You will need skills to manage cash-flow, people, and personal time. These management skills apply to anything, not just to entrepreneurship.


Life was meant to be enjoyed. Financial intelligence will help you get rich, pay your bills, and have the good of life.


Pay your broker well. Pay professionals people well. If they are professionals, their service should make you money. A good broker provides information as well as advices, thus he saves your time, and will make you money.



Never ask an encyclopaedia salesman if you need an encyclopaedia. He will tell you that you must have one…


When Robert chooses paid-professional to work for him, he first finds out how much property and stock they personally own, and what percentage they pay in taxes.


Find a broker who has your best interests in their heart. Be fair, and most of them will be fair to you.



Many middle managers do not get promotion in years because they only know to work with people below them, not with people above them. A few people know to manage smarter people than them. The real skill is to manage and pay well the people who are smarter than you in some technical area. That is why companies have a board of directors. You should have one too.


Investors ask “how fast do I get my money back”, and what they get for ‘free’. This is ROI – Return Of and On Investment. This is how it works: Robert puts money in stocks, for example in a company’s shares. He leaves the money there for a week or up to a month, while the shares go up. Then he pulls his initial money, and use it to invest elsewhere. He does not worry about the rest of the money (in the initial shares), because his initial money is now pulled. So, his money goes in, then goes out, and yet, now Robert still owns stocks and assets that are technically free. Sometimes Robert loses money, but this is money that he can afford to lose.



Ray Kroc of McDonald’s sold hamburgers franchisers, not because he loved hamburgers, but because he wanted the real estate under the franchises for free.
Investors should look at more than ROI, as it is the assets you get for free which is important once you get your money back.



Instead of buying his son a new car, Robert’s friend gave his son $3000 for the son to invest and create the required $6000 that is needed for buying the car. The son may lose the $3000, but it is better to learn from losing, rather than not learning at all, and losing when you are an adult.



Become the hero that you admire. Emulating heroes is a true power of learning.



Heroes do more than just inspire us, they make things look easy. Too many people make investing sound hard, instead of finding heroes who make it look easy.



Whenever you feel short or in need of something, give what you want and it will come back to you. This is true for money, a smile, love, or friendship. The principle of reciprocity – give what you want.


There is a story about a guy who was holding some fire woods on a cold night, yelling at the pot-boiled-stove: ‘When you give me some heat, then I will put some wood in’…


Sometimes just thinking what we want and how we can give it – results in a reward.

Your world is a mirror of you.



Learn to give for the act of giving, not for receiving, and then you will receive. There are powers in this world that are smarter than us.


Find someone who has done what you want to do. Take them to lunch, ask for tips.
You need to know what you are looking for, then you can go and look for it. This is the case in real estate, stocks, funds, companies, a new pet, a new home, a spouse.
When supermarkets have sales, we go and buy and stock up. When the stock market has a sale on, which is called ‘a crash’, consumers run away instead of buying. When supermarkets raise prices, consumers shop elsewhere. But when the stock market raises its prices, consumers start buying…


First look out for people who want to buy, then look out for people who want to sell.

Action always beat inaction.



In the world of accounting, there are three types of income – earned, passive and portfolio.

Earned – job salary, working for money. It has the highest tax percentage to pay.

Passive – derived from real estate investments and alike.

Portfolio – derived from paper assets, such as stocks, bonds, funds. Lowest tax to pay. This income makes Bill Gates the richest man in the world, it is not his earned income.



Investors make money when the market goes up, and also when the market goes down.



To become rich one must know what kind of income to work hard for, how to keep it, and how to protect it from loss.


End of part 4 (of 4). Go to part 1. Part 2. Part 3.


16 Oct 2015. © Gil Dekel.