Rich Dad's Guide to Investing

What advice would you give the average investor?” his reply was, “Don’t be average.”

How Not to Be Average

Back in 1973, I put my priorities in this order—to be:
1. Rich
2. Comfortable

Buy 100 shares of this or sell 100 shares of that.” Nor is it, “Is the P/E high or is the P/E low?”

The following is a list of some of the investments in which so-called accredited investors and sophisticated investors invest:
• Private placements
• Real estate syndication and limited partnerships
• Pre-initial public offerings (IPOs)
• IPOs (while available to all investors, IPOs are not usually easily accessible)
• Sub-prime financing
• Mergers and acquisitions
• Loans for start-ups

Education
• Experience
• Excess cash
“Those are the three E’s,” he said, looking up from the page

This is an example of something we would consider investing in,” said Mike as he sat down. “It is known as a non-registered security. This particular investment is sometimes called a ‘private placement memorandum.’”

Most people have the ‘buy, hold, and pray’ mentality.

Most people are not investors. Most people are speculators or gamblers

that the best way to invest is to have your business buy your investments for you. The worst way to invest is to invest as an individual. The average investor knows very little about business and often invests as an individua

of each category, because the path I chose may not be the right path for you.

The Accredited Investor