About this video

• Video Title: Why Warren Buffett Is WRONG About Investing | Robert Kiyosaki
• Channel: The Iced Coffee Hour Clips
• Speakers: Robert Kiyosaki, Graham Stephan
• Duration: 00:08:58

Overview

This video features Robert Kiyosaki discussing his differing investment philosophy compared to Warren Buffett. Kiyosaki critiques Buffett's advice for the average person, particularly regarding leverage and traditional investments like stocks and 401(k)s. He advocates for alternative investments like real estate and oil, emphasizing cash flow and the strategic use of debt, while also touching on the importance of finding a niche and learning from mistakes.

Key takeaways

• Critique of Buffett's Advice: Kiyosaki believes Warren Buffett's investment advice is geared towards the average person, and he encourages listeners not to be average. He specifically challenges Buffett's views on leverage, arguing that Buffett himself uses significant leverage through his insurance companies.
• Preferred Investments: Kiyosaki favors investments in real estate, oil, gold, silver, and Bitcoin/Ethereum. He emphasizes the importance of cash flow and minimizing taxes, contrasting this with a diversified 401(k) approach, which he considers a waste of time for those seeking wealth.
• Strategic Use of Debt: Contrary to Buffett's caution on debt, Kiyosaki views debt as a tool for wealth creation, highlighting his ability to borrow large sums for real estate investments.
• Learning from Mistakes: Kiyosaki stresses that mistakes are valuable learning opportunities, but only if one doesn't lie about them. He contrasts this with his preference for outsourcing management of his real estate to avoid getting bogged down in minor details, which he finds detrimental to his focus on higher-return activities.
• Personalized Approach: The core message is to find an investment strategy that makes the most sense for the individual, rather than blindly following advice. Kiyosaki advocates for focusing on areas of expertise and personal financial goals.

Robert Kiyosaki prefers investments in real estate, oil, gold, silver, Bitcoin, and Ethereum. He favors these over traditional stock market investments like index funds or ETFs because he believes they offer better cash flow, allow for strategic use of debt, and provide opportunities for tax advantages, such as depletion allowances on oil wells. He views index funds and ETFs as "for losers" because they are not exciting and require less active engagement, which he contrasts with his preference for actively managing or investing in assets that generate significant cash flow and leverage.

Robert Kiyosaki considers 401(k)s and index funds to be undesirable for those seeking significant wealth. He states that a 401(k) requires no intelligence and is a "waste of time." He refers to investing in index funds or ETFs that track the market as being "for losers," although he acknowledges that they can be suitable for those who are content with that status. His primary reasoning is that these investment vehicles do not generate the substantial cash flow or leverage opportunities that he believes are necessary for rapid wealth accumulation.