Page 154 - Rich Dad's Increase Your Financial IQ: Get Smarter with Your Money

• When someone says the shares of a company are going to go up, it’s
an opinion because it is about a future event.

• When someone says a person’s net worth is a million dollars, it’s an
opinion because most valuations are opinions.
• If a person says, “He is very successful,” this is an opinion because
the definition of success is relative.

Lesson #2: Insane solutions. An insane solution occurs when a person uses
information that is an opinion as a fact. In war this can kill you. In business

it can ruin you. For example:

QUESTION: “Why did you buy that house when you knew you couldn’t
afford it?”

ANSWER: “I bought it because my broker said it was going to go up in
value. I thought that I could buy the house, live in it, and then sell it for a

profit, which would solve my money problems.”

QUESTION: “Why did you marry him even after you knew he was a

womanizing lazy bum?”
ANSWER: “Well, he was so cute. I was afraid I would lose him. I did not
want anyone else to steal him from me. So even though I knew he fooled

around and did not like to work, I thought that after we got married and had
kids, I could change him.”

QUESTION: “Why did you stay at a job you hated for so many years?”
ANSWER: “I thought I might get promoted.”

QUESTION: “Why do you invest in those mutual funds?”

ANSWER: “Because my supervisor told me to. She said it was a good
investment.”

Lesson #3: Risky actions. In war, if you didn’t verify information and acted
on it blindly, you risked death. A risky investor invests based on opinions.