Robert Kiyosaki, the author of the well-known financial guide "Rich Dad, Poor Dad," recently expressed his viewpoint concerning the divergent approaches wealthy and less affluent individuals adopt toward money, especially in times of market fluctuation. He draws attention to a behavioral paradox observed among consumers and investors during economic cycles.
In a recent message posted on the social media platform X, Kiyosaki illustrated this divergence by comparing purchasing decisions during retail sales with reactions during financial market downturns. He noted, "When Walmart has a SALE poor people rush in and buy, buy, buy," indicating that lower-income individuals tend to aggressively capitalize on discounted consumer goods. Conversely, in the case of a financial asset market decline, which he refers to as a "CRASH," those same individuals reportedly tend to sell off their assets in panic, effectively 'running' from the market. In contrast, the wealthy react oppositely, seizing the opportunity to acquire assets by buying extensively during such crashes.
Kiyosaki contextualizes current movements in the markets for commodities such as gold, silver, and Bitcoin as emblematic of such a downturn. He perceives the recent plummet in these asset prices not as a setback but as a strategic opening. With liquidity on hand, he awaits the right moment to increase his investments in these arenas.
This perspective highlights his fundamental thesis: many individuals tend to misalign their spending and investment behavior by purchasing excess consumer products when prices fall but hesitating or retreating when investment prices decline — a time he contends is most conducive to wealth accumulation.
Further detailing his philosophy, Kiyosaki revisited his framework of "laws of money," drawing from classical concepts such as Gresham's law, which states, "When bad money enters a system, good money goes into hiding." Through this lens, he explains his preference against saving in United States dollars, asserting "Savers are losers," and criticizing the reliance on what he considers the "wrong kind of money" for saving.
Additionally, Kiyosaki invokes Metcalfe's law, which posits that the value of a network increases with the square of the number of users or nodes. This principle underscores his investment preference for assets and companies with expansive networks. He cites Bitcoin and prominent companies like FedEx and McDonald's as entities embodying strong, scalable networks, which he believes bestows intrinsic value aligned with Metcalfe's law. Contrarily, he characterizes smaller family-run burger establishments and many cryptocurrencies lacking substantive networks as less viable investments, associating this with their financial struggles.
Kiyosaki also explicitly states his aversion to certain financial instruments that fail to comply with these foundational monetary laws. He declines to save in U.S. dollars, citing violation of Gresham's law, and avoids investing in "shit coins" or cryptocurrencies without networks, due to their non-conformance with Metcalfe's law.
For investors contemplating longer-term financial strategies, Kiyosaki advocates for a distinct mindset focused on network value, the foundational nature of money, and the opportunities presented during volatility. The recent price drops in precious metals and cryptocurrencies are interpreted by him as moments to increase asset acquisition rather than to divest or retreat.
This philosophy aligns with platforms offering access to innovative investment opportunities, such as those specializing in venture-stage or pre-IPO technologies. Through fractional investing, these platforms can enable a broader investor base to participate in markets typically reserved for wealthier individuals.
To conclude his perspective, Kiyosaki challenges readers to reflect on their financial approaches with a pointed question: "What are you going to do?"