An accomplished investor and best-selling author, Robert Kiyosaki has a unique perspective on debt and investment. Kiyosaki expounded upon his debt philosophy in an Instagram reel published on November 30, emphasizing the significance of differentiating assets and liabilities.
He stated that while many individuals purchase liabilities with debt, he purchases assets with it. To exemplify his methodology, Kiyosaki declared that his high-end automobiles, such as a Rolls Royce and a Ferrari, are entirely repaid, classifying them as liabilities rather than assets.
Kiyosaki further conveyed his skepticism regarding currency savings in the reel, alluding to the 1971 decoupling of the U.S. dollar from the gold standard during the presidency of Richard Nixon. As opposed to conserving currency, he converts his earnings into silver and gold and stores them in gold. He acknowledges that this approach has resulted in the accumulation of $1.2 billion in debt, as stated by Kiyosaki. He claims that he is indebted because “the bank would fail if I failed.” None of my concern.”
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His strategy consists of the strategic utilization of debt to increase wealth. According to Kiyosaki, debt can be classified into two categories: good debt and bad debt. Good debt comprises loans utilized to acquire income-generating assets, such as real estate, enterprises, or investments, which contribute to the accumulation of wealth. He proposes the utilization of debt as leverage in investment strategies, with a specific focus on real estate, perceiving it as a viable method to exploit opportunities and navigate market fluctuations.
A multifaceted investment strategy characterizes Kiyosaki. His position against fiat currency, which he derogatorily refers to, is well-known. In contrast, he promotes investment in “real assets” such as Bitcoin, silver, gold, and Wagyu cattle. Particularly, he favors Bitcoin, which he considers a hedge against the depreciating value of the U.S. currency. Kiyosaki views gold, another key component of his portfolio, as more stable and reliable than cash, which he labels “trash” because he just doesn’t “trust the frickin’ dollar.” He has indicated a readiness to augment his gold reserves notwithstanding a substantial decline in prices.
