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Kiyosaki on the Coming Stock Market Crash



March 21, 2007 – Comments (4)

Here's the article from Yahoo!

Some number of years ago I read his first book, "Rich Dad, Poor Dad." I seem to remember thinking his logic was reasonable. Don't know what he has to offer on the stock market except that I seem to recall reading a past article from him just saying that he avoids investing in the market. I was lured to this article because of the title -- while some of the things he points out are certainly true, overall it strikes me as a bit silly. 

4 Comments – Post Your Own

#1) On March 21, 2007 at 2:39 AM, TMFSpiffyPop (99.86) wrote:

Haven't read the article, but am not motivated to do so. I would say overall that I think he has sold out, except that I'm never sure he ever sold in. :) --DG

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#2) On March 21, 2007 at 11:03 AM, Jro81 (< 20) wrote:

Agreed ... I when Donald Trump starts telling me to buy Uranium stocks ... then I'm running for the hills.


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#3) On March 21, 2007 at 11:21 AM, ifthenelsenull (36.62) wrote:

I agree and think not only does he not understand the stock market but he is not really getting to the core of inflation, is missing out on understanding scarcity and this quote shows his lack of understanding-  

"Years ago, my rich dad taught me to be a comparison shopper, especially when it comes to investments. He said, "You need to understand value more than price. Just because the price of something goes up doesn't necessarily mean the value has gone up."

He also told me, "If prices go up without a corresponding increase in value, it means the value of the asset has actually gone down." This holds true for all assets, including stocks, bonds, and real estate."

Well kind of in round about vague sort of way he makes a point... stocks are not lock step tied to underlying value and appreciation is related to future events that cannot be known today i.e. earnings estimates.  Value is a personal assignment based on many factors including intrinsic (which he is talking about)  Extrinsic which are sometimes hard to place value on and externalities (not always in the equation) which are just about impossible to place accurate value on.

Comparing comodities with real estate and stocks is certainly not apples to apples to apples.  It's like comparing apples to meat to plastic.  No one is wrong all of the time but I hope that not too many more people jump on his bandwagon.    

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#4) On March 21, 2007 at 1:12 PM, TMFKopp (97.36) wrote:

I appreciate the comments and admit that I was trying to be diplomatic in my notes. Overall I think he comes off in the article as someone that doesn't really know what they're talking about.

He should probably stick to talking about finances in general terms.

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