Renowned author and investor Robert Kiyosaki recently shared his unique perspective on debt and investment, shedding light on his philosophy in a November 30 Instagram reel. Distinguishing between assets and liabilities, Kiyosaki emphasized the importance of using debt strategically to accumulate wealth.
Unlike many who use debt to acquire liabilities, Kiyosaki revealed that he employs debt to purchase income-generating assets, such as real estate, businesses, and investments. Surprisingly, his luxury vehicles, including a Ferrari and a Rolls Royce, are fully paid off and categorized as liabilities rather than assets.
Expressing skepticism toward saving cash, Kiyosaki opts for gold, converting his earnings into precious metals. This strategy has resulted in a staggering $1.2 billion in debt, a fact he openly acknowledges, asserting that it’s not his problem if he goes bust as the bank would go bust too.
Kiyosaki’s investment strategy involves categorizing debt into good and bad, with good debt contributing to wealth-building through investments in income-generating assets. He advocates leveraging debt in real estate, considering it an effective way to navigate market fluctuations and seize opportunities.
The seasoned investor’s approach extends beyond traditional investments, encompassing what he terms “real assets” like Bitcoin, silver, gold, and even Wagyu cattle. Bitcoin, in particular, serves as a hedge against the declining value of the U.S. dollar in his portfolio.
While he views gold as more stable than cash, which he dismissively refers to as “trash,” Kiyosaki remains open to increasing his gold holdings even if prices drop significantly. Silver also holds a significant place in his portfolio due to its increasing rarity and relatively lower price compared to gold.
Real estate remains a cornerstone of Kiyosaki’s investments, valued for its dual benefits of rental income and capital appreciation. His unconventional investment in Wagyu cattle reflects his commitment to diversifying his portfolio.
Kiyosaki’s financial philosophy is rooted in a broader perspective on finance and wealth. He sees money as a tool, a form of debt or obligation that can be utilized to acquire assets and generate wealth. Emphasizing financial education, he suggests that individuals should be well-informed about financial matters.
While Kiyosaki’s methods have proven successful for him, they are not without risks, as evidenced by his past financial challenges, including filing for bankruptcy in 2012 after a legal dispute over royalties.
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