'Rich Dad, Poor Dad' author admits to $1.2 billion debt
What's the story
The author of Rich Dad, Poor Dad, Robert Kiyosaki recently shared that he has accumulated $1.2 billion in debt. He said on Instagram, "if I go bust, the bank goes bust. Not my problem." Kiyosaki uses debt to purchase assets and views his luxury cars, a Rolls-Royce and a Ferrari, as liabilities since they are fully paid off. He also questions the value of saving cash due to the US Dollar's separation from the gold standard in 1971.
Details
Kiyosaki's investment strategy
Instead of saving cash, Kiyosaki prefers to convert earnings into silver and gold. This strategy led to $1.2 billion debt, which he claims was used to buy assets. In a 2022 interview, he said, "I don't own any copper. I own a lot of silver. I found a silver mine in Argentina and Yamana Gold bought it from me. I do own tons of gold and silver." He believes gold is more stable than cash, referring to cash as "trash."
What Next?
Real assets and unconventional investments
Kiyosaki has consistently supported investing in "real assets" like silver, gold, Bitcoin, and Wagyu cattle. He sees Bitcoin as a safeguard against the declining value of the USD. Silver is a big part of his investment strategy due to its increasing scarcity and comparatively lower price than gold. Real estate remains a key component of his investments for its twin benefits of rental income and capital appreciation. The most unconventional portion of his investments is in Wagyu cattle.
Debt
Kiyosaki believes good debt can aid in wealth generation
Kiyosaki differentiates debt into two parts: good debt and bad debt. According to him, the former aided in generating wealth. He also urged others to use debt as leverage in investments such as real estate. Kiyosaki found it to be an efficient way to tackle market fluctuations.