Page 138 - Rich Dad Poor Dad for Teens: The Secrets about Money--That You Don't Learn in School!

If you watch CNBC, which is a goldmine of investment information,
they often have a panel of so-called “experts.” One expert will say the
market is going to crash, and the other will say it's going to boom. If you're

smart, you listen to both. Keep your mind open because both have valid
points. Unfortunately, most poor people listen to “Chicken Little.”
I have had more close friends try to talk me out of a deal or an
investment. A few years ago, a friend told me he was excited because he
found a 6 percent certificate of deposit. I told him I earn 16 percent from
the state government. The next day he sent me an article about why my
investment was dangerous. I have received 16 percent for years now, and he

still receives 6 percent.
I would say that one of the hardest things about wealth building is to be
true to yourself and be willing to not go along with the crowd. For in the
market, it is usually the crowd that shows up late and is slaughtered. If a
great deal is on the front page, it's too late in most instances. Look for a new
deal. As we used to say as surfers: “There is always another wave.” People

who hurry and catch a wave late usually are the ones who wipe out.
Smart investors don't time markets. If they miss a wave, they search
for the next one and get themselves in position. Why this is hard for
most investors is because buying what is not popular is frightening to them.
Timid investors are like sheep going along with the crowd. Or their greed
gets them in when wise investors have already taken their profits and
moved on. Wise investors buy an investment when it's not popular. They

know their profits are made when they buy, not when they sell. They wait
patiently. As I said, they do not time the market. Just like a surfer, they get
in position for the next big swell.
It's all “insider trading.” There are forms of insider trading that are
illegal, and there are forms of insider trading that are legal. But either way,
it's insider trading. The only distinction is how far away from the inside are

you? The reason you want to have rich friends who are close to the inside is
because that is where the money is made. It's made on information. You
want to hear about the next boom, get in and get out before the next bust.
I'm not saying do it illegally, but the sooner you know, the better your
chances are for profits with minimal risk. That is what friends are for. And
that is financial intelligence.
4. MASTER A FORMULA AND THEN LEARN A NEW ONE: The

power of learning quickly. In order to make bread, every baker follows a