Who is the book for: The book is meant for retail investors with a long term investment horizon.
What retail investors must avoid to avoid losing money?
(1) Following the stock tips provided by brokers blindly. Brokers have vested interests in increasing volume of your trade and not your profits.
(2) Intraday Trading : Its a high speed game which hardly anyone has mastered. Its no wonder we don’t have any stock market millionaires/billionaires who have become rich solely due to intra day trading.
(3) Investing on Borrowed Money: Although stock market is one of the greatest wealth generators it comes with no guarantees or timelines. Pressure of borrowed money and to make higher returns than the cost of funds can cause the investors to take many high risk bets leading to loss of capital.
(4) F&O trading: High margin trading without understanding its risk can cause capital to be wiped out in no time.
The time tested strategy to create wealth in the stock market is to:
“Invest in high quality business(stocks) and hold it for the long run.”
Book title: Rich dad’s guide to investing Author: Robert Kiyosaki ISBN-10: 1612680216 ISBN-13: 978-1612680217 Buy here
What this book is about
Robert Kiyosaki, the author of the famous book, “Rich dad, poor dad”, has written a book named “Guide to investing”, which helps you build the right attitude to help you become rich. The book starts with a young Robert going to meet his mentor, whom he calls ‘rich dad’, and rich dad’s son. They are talking about investing in a very lucrative opportunity. While Robert asks to join in, the two politely respond to him that he couldn’t do it, since the opportunity was legally only for the ‘officially rich’, i.e. a networth of $1,000,000 and above. Stung by the incident, Robert consults his one and only guide on how to grow rich – his rich dad. The book is a culmination of what rich dad taught Robert about getting rich. Continue reading Book summary: Rich dad’s guide to investing by Robert Kiyosaki