What Are You Investing For? Cash Flow or Capital Gains? – Robert Kiyosaki

What Are You Investing For? Cash Flow or Capital Gains? – Robert Kiyosaki

(energetic rock music) – But this is investing 101, I mean, there’s fundamental and
technical, you know? Cashflow 101 is fundamental, Cashflow 202 is technical investing, okay? So, there’s two basic investments. One is cashflow. And as Kenny already said, this is the hardest. It is the hardest to find because cashflow then
affects return on investment. So if I put in $10 and
I get one dollar back, that’s a 10% ROI, okay? I mean, it’s just simple. I mean, I was taught this
as a kid playing Monopoly. You know, you got one house, you get $18, you get two houses, you got $36, I mean it’s not, you don’t have to go to college. It is not that hard. Monopoly is a cashflow game, right? And that’s it. – Yeah, and the problem is, is that the people that you’re
seeing in the paper today, their philosophy is not
based on this, period. – No.
– It isn’t. – But they don’t, I mean,
this is as simple as it gets. Technical, fundamental,
cashflow versus capital gains. I mean, you know, if you play Monopoly,
you’ll understand this game. This is all there is, so when you look at cashflow 101, this is called fundamental, and this is called technical. And the reason it’s technical
’cause it’s all emotion. It’s up or down, up or down, up or down, as Kenny says, what’s your net worth? What’s your equity? It depends upon the emotions of that time. So, I mean, these morons
haven’t got their lesson yet, they’re going in to buy a foreclosure that was here to go on the same
thing, I got one more time. – Well yeah, and here’s the ironic thing is that all these people
that’re losing everything, they’re gonna blame it on
the real estate market. – [Robert] Yep. – They’re not gonna take
ownership of the issue. They are gonna blame it on the market. And at this time, I’m
making so much more money than I was two years ago. – Lemme ask you this, you just built your house, right? – [Kenny] Yeah. – ‘Kay, and Kenny has owned multi, multi, multimillion dollar properties, but only after he was a rich
man did he build a house. And what poor people do
is they buy the big house on emotion, technical, and then they never buy on cashflow. That is a, you know, oh, I have the house of my dreams! What a frickin’ loser, are you! How stupid can you be? Kim and I live in a tiny little
house on 16th Street here. We paid $117,000 for it, monthly payments were $300 a month, including homeowners’ association, who were rippin’ us off. (audience laughing) Oh no, they were the, homeowners
are the biggest crooks I’ve ever met in my life. (laughing) Homeowner means crooks. That’s what it means,
they’re the biggest crooks I’ve ever met in my whole life. Nice, honest people, you know? Like, frick it!
(laughing) As they come, they are ripping you, stealing from you, and all this stuff. But we sat there and we bought cashflow and our little house just sat there and it sat there and it sat there, one of those dinky little house. One day, we popped up and
we had a lot of money. Then we bought a big house. The same as Kenny. If you can understand
what we’re saying to you, it’s just fundamental of rich people. And poor people want the big house, the BMW, the nice cars and all this stuff, but they don’t have the
cashflow to support this. Do I make sense to you guys here? That’s the difference. – One other thing I wanted to add is I happened to be in Calgary two weeks ago. And Calgary just as a city
appreciated 50% last year, so when the–
– Wait, why is Calgary appreciating right now? – Anybody? – Oil.
– Oil. – Why do we just buy in Oklahoma? – Yeah, oil.
– Oil. I mean, wherever there’s
jobs, you buy real estate. Why am I not buying in Michigan? General Motors.
(audience laughing) No oil! – Yeah, in Japan.
– Yeah, Japan. – But, what’s interesting is, is that whenever I do a talk, I always like to start
out and ask, you know, how many flippers are in a room and there’s probably 200.
(laughing) And I said, okay, I go–
(birdcall) You know, I said, how
many people are flippers? And 200 people raised
their hand and I said, how many people wish they
wouldn’t have flipped a year ago? 200 people raised their hand. So, the point is, it doesn’t matter if the market’s going up or the market’s going down. It’s a bad strategy because they, those people, those 200 people, would have had another 50% in
value based on appreciation If they would’ve not flipped. So, it doesn’t matter
if the market’s going up or the market’s going down. You might be able to time a
quick buck here and there, no question, but the truth is, people that flipped in Phoenix
in ’03 lost 70, 80% in value. If they still would’ve owned the home, they would’ve owned it for a lot less and it would be cashflow now, ’cause now what’s happening
is rents are screamin’. Rents are going up dramatically. – And populations, you know, Phoenix is still the number
one or number two growth, Arizona’s number one or two
growth state in the nation. As the Baby Boomers retire and the hurricanes hit Florida,
more come here, you know? And it’s just fundamentals. This is called demographics, and that’s why I show you this here. A nation of 300 million in 10,
15 years will be 350 million. They gotta live somewhere. And the dollar’s gonna keep dropping, the price of oil will keep going up, gold will keep going up, silver will keep going up, and replacement costs will keep goin’ up. So these flippers got f’d. It is really stupid, these guys here, you know, so for Kim and I, our strategy wasn’t to own one big house. Our strategy was to own 20 houses, then we live in a little house. And then we went to 500,
then we bought a big house. That is the difference between
rich people and poor people. Poor people wanna look rich, and rich people wanna be rich, right? – Yeah, I mean, it’s the same thing. Any money that I had, I put
into real estate investment. And because that’s what I do, so I obviously could have
put that into my home or, you know, or cars and all
those kinds of things. I could have brought all those things. In the cashflow game,
those are called doodads. But I didn’t. You know, I continued to pour all money, and we always joke around ’cause we’re literally always broke because if we have money–
(audience laughing) – [Robert] What, wait,
I want you to know– – It’s the truth.
– How true, Kim and I right now are cash strapped. We have no cash. I mean, we are so tapped out, the reason is is because we’re
investing like wild people. Do you know what I mean? I don’t have savings, I don’t have jack. We have a lot of assets,
a lot of cashflow, but that money just keeps going back out. It doesn’t stay with us. Your first investment, was
it cashflow or capital gains? Here, you’re fine. – Okay, my first investment was cashflow. – Why? – Because I wanted that money coming in, my biggest concern is I
was gonna put money out and not have anything coming back in. – And how much was your first cashflow? – $25 a month. (audience awws) But it was a start! But it was a start, and I learned so much on that one property, but it did cashflow. – And how much cashflow
do you have a month now? – Oh, about $120,000 a month. (audience applauding) – That’s not Donald
Trump’s money, you know, that’s not Warren Buffett’s
money and all this, but $120,000 a month is more
than most people make a year. And she doesn’t have to work for it, and that’s not all the
rest of her investments. That’s not from her oil, gas, and businesses and stuff like this. – Well, but that’s what we talk about, I mean, that’s freedom, is you know, and when you don’t have to work anymore because you got that money
comin’ in every month. We talk about when we
first retired was ’94, we only had $10,000 a month
coming in every month. That was it. But we only had $3,000 a month goin’ out. So we were free, so it’s
not that dollar amount, it’s can you cover your
expenses and be free, because after that, then we were able to get on with what it is
we really wanted to do. – Right. – When most people are still busy working for that paycheck and, you know, just surviving everyday as we were, that they don’t have time
to really think about what is it I really wanna do? (inspirational piano music)

100 thoughts on “What Are You Investing For? Cash Flow or Capital Gains? – Robert Kiyosaki

  1. I always learn something new. Thanks once again Robert!๐Ÿ‘

  2. Hoping to learn more about investing.

  3. Never put all of your investments in one basket – Diversity is key ๐Ÿ”‘ ๐Ÿ”ฅ

  4. I enjoy these videos very much!

  5. Loving these old videos!

  6. Do these principles apply around the world?

  7. Love these old videos thanks for sharing! We have read almost every Robert Kiyosaki book, always excellent content โœŒ๏ธ

  8. โœŒ๐Ÿพ

  9. I love you Robert and Kim.

  10. Genius ๐Ÿ‘

  11. More of these plzzzzz

  12. Merci ๐Ÿ™‚ !

  13. how about investing in Solar energy? am in a country that has a lot of sun 250+days of the year

  14. Que linda Kim!!!!!!!!!!! ๐Ÿ˜๐Ÿ˜๐Ÿ˜๐Ÿ˜๐Ÿ˜๐Ÿ˜๐Ÿ˜๐Ÿ˜

  15. Holy shit.

  16. I love Roberts drive but one thing is he doesnโ€™t walk us through the process. I mean, we get what youโ€™re saying but HOW?!! We keep hearing the same thing

  17. I dont know how i should thank you MR.robert and madame Kim
    You both inspired me for years
    Thank you rich dad

  18. So Robert, for all those who discover you RIGHT NOW what would you give priority to earn money ASAP? Because the market is already taking a nosedive..
    Great video by the way๐Ÿ‘Œ๐Ÿผโค๏ธ love what youโ€™re doing man, champ๐Ÿ†๐Ÿ˜Ž๐Ÿ‘๐Ÿผ

  19. This works out so perfect for me cause I live in Phoenix and I can see a lot of what he's saying is true about Phoenix expanding. A lot of ppl from Cali and snow birds from Canada, a lot of money to be made from those people

  20. ๐Ÿ‘Œ๐ŸฟNice to see some archive footage. ๐Ÿ˜Ž๐ŸŒด

  21. Throw back. Buy gold silver bitcoin and business

  22. What year is this. History is repeating

  23. Do you do local meet ups in Phoenix?

  24. I got inspired by you Sir, In my life time I have to meet you

  25. It is true. Buying for cash flow is harder than capital gains. I am learning about cash flow amd its interesting that I learned that the market is not what all the so called experts are saying.

  26. Love you guys so much. One day I want to meet you and give you a hug

  27. Good energy

  28. Just out of curiosity, may I ask which year this was from? I can see it's definitely from the mid to late 90s but specifically which year?

  29. Im on my way ๐Ÿ’ช๐Ÿ’ช๐Ÿ’ช

  30. Love it Robert thank you for financial education…

  31. Nice to see young you and Kim โค๏ธ
    And thanks for the lesson

  32. Investing in real estate is one of the best things you can do for yourself

  33. Very cool.

  34. thx master money :')

  35. Nostalgic, those pre computer based seminars…

    Hey they're talking about Calgary!!

  36. The youth! <3

  37. The man who changed my thoughts on money and life

  38. More videos like this

  39. Love from India โค๏ธ great sir I learn so much from your book's.

  40. You look 30 years younger today Robert!

  41. @therichdad why do you make these videos what do you get from giving advice of becoming successful what is your end goal? The reason I ask is because seeing advice had become a market just flooded with people claiming if you do this or do that or buy such and such book (most of which are books filled with obvious statements like "if you wanna be successful you have to work hard") but no one actually gives examples or steps or teaches about things like understanding markets and investments. No one gives real life examples. They just sell the idea of success so that they themselves become successful. Idk if I worded that right I'm just A programmer.

  42. this is true.. thank you Rich Dad!!

  43. She nodded her head like โ€œclap bitchโ€ lol but congrats

  44. But letโ€™s Say You have a business that profit well then You might want to cash out from the profit. That is capital gain right?

  45. 25$amoth 12000$amoth return with cash flow invest good job lady

  46. Mortgage repayment?

  47. That is a great video! Thanks for it

  48. <3 love this

  49. Investing?…Buy Ripple XRP!…hundreds of banks are already signed up!

  50. One of the best learning video…thanks mr robert kiyosaki. I am your biggest fan and your constant book reader. I am very thank ful to god to have people like you. Love Rahim from pakistan

  51. Cashflow is king for me๐Ÿ’ช

  52. 9:05 powerful message

  53. Thanks for saving my life

  54. where can i watch more classic videos like this

  55. Throwwwwback!!! Nice Robert!

  56. I'm trying to teach my 12 year old daughter about being an Investor and becoming a Business owner versus just being only an Employee. Any suggestions for good books to read with her?

  57. necesito urgente aprender Ingles

  58. Thanks so much for the awesome video ๐Ÿ”ฅ This will definitely help me Become Wealthy and Improve my Finances!! Keep it up! ๐Ÿ’ฏ๐Ÿ’ฏ๐Ÿ™Œ

  59. if your so rich and want to help people.. give me a couple of mill ๐Ÿ˜‚๐Ÿคฃ

  60. Love the video, this is great.

  61. How you thumbs down a video on finance?

  62. I learned a lot from you. Thanks a lot Robert

  63. It pays to listen

  64. I just want a house with an Antenna on the Roof, a basement for beer and video games, and a deck for grilling. (Making my liability the best it can be for the best price possible) Some rental properties along with that would be nice to have.

  65. There is nothing wrong with Capitol Gains. It gives you cash for bigger cash flow. Pay cash for that rental property and have 100% return on investment out of the gate.

  66. Poor people buy houses, cars and other liabilities before becoming rich. "Our strategy was not to own one big house, our strategy was to own 20 houses, then we live in a little house, and then we went to 500, then we bought a big house."

  67. i want tthis model sooo badly. I will have it i feel it, but i feel like i am obliviious. I am cash strapped, but I want to pull out the 43k I have in my 401 k….especially now that I am getting laid of in a month. But I don't want to eat that money away, i want to build a lil snowball of cash flow. I do want to do this only by providing value to others. so do i just give my money away, or do i rent a place and then sublet it out?

  68. Loved it

  69. ๐Ÿ‘๐Ÿ‘๐Ÿ‘Œ great teaching..love from Fiji๐Ÿ‡ซ๐Ÿ‡ฏ๐Ÿ‡ซ๐Ÿ‡ฏ๐Ÿ‡ซ๐Ÿ‡ฏ

  70. This is a proven way to make a cash flow bi investing small capital https://www.amazon.com/dp/B07WGHVKGY

  71. I Invest mostly for capital gains, but some of my investments give me dividens. which is sort of cashflow.

  72. If capital gains is a bad thing, why is some of the richest people in the world investors in the stock market? The stockmarket is bad if you speculate, but if you invest because you see value in companies it could make you a fortune.

  73. What if you donโ€™t have money for cash flow?

  74. Why keep working for more cash flow when you have more coming in than going out (especially 100k+/month) ๐Ÿ™„

  75. thx robert

  76. People dont understand they are in education business not investing biz.

  77. ๐Ÿ™Œ๐Ÿฟ great time for gold. I put myself on the gold standard years ago ๐Ÿ™Œ๐Ÿฟ

  78. Robert always interrupting Ken.. so arrogant and loves to talk about himself too much.

  79. Cash flow VS Capital Gains?

    Fundamental and Technical

    Cash flow 101: fundamental
    Cash flow 202: technical

    CASHFLOW is the hardest to find.
    CASHFLOW effects return on investment.
    10% ROI. $10 and $1 back.
    1 house = $18
    2 hours = $36
    Monopoly is a CASHFLOW game!
    This is as simple as it gets.
    Technical. Fundamental.
    CASHFLOW vs Capital Gains!
    TECHNICAL is emotional.
    FUNDAMENTAL is rational.
    THE IRONIC THING IS THAT people who are losing everything will blame it on the market, they wonโ€™t take ownership.
    Built house.
    Multi-Million dollar properties.
    Only after he was a rich man, did he build a house.
    Poor people buy on TECHNICAL.
    Rich people buy on FUNDAMENTAL.
    $117,000 for it.

  80. Buy CASHFLOW!
    Popped up and had a lot of money, then bought a big house.
    Understand fundamental of rich people.
    Poor people want the nice stuff, but donโ€™t have the CASHFLOW to support!

  81. People wouldโ€™ve had another 50% in value if they wouldnโ€™t have fled. Market volatility doesnโ€™t matter, flippers lost 70-80% of the value. Cash flowing, rents are screaming, going up, populations, baby boomers, fundamentals.
    They got to live somewhere.
    Dollar will drop.
    Gold will go up.
    Silver will go up.
    Oil will go up.
    20 houses. Then 500.

  82. I put money into real estate investing!
    CASHFLOW game!
    Continue to pour money into real estate fundamentals. Cash strapped. Tapped out. Investing like wild.
    Assets & Cashflow.

  83. Assets & CASHFLOW.
    Money goes out to invest!
    Money coming in.
    First CASHFLOW: $25/month


  85. what year is this video?

  86. We have been close for many years, yet we've never met. We've heard you're words and advice, but never spoken. You've impacted us all, thank you both for changing our lives.

  87. This is gold. Never underestimate cash flow. Cash is not king; CASHFLOW is king.

  88. I'm glad Robert made a pointer to demographics. I just learnt something.

  89. Forex trading is a way to force your money to make more money for you. … It is a good investment opportunity but not a good full time job. It is worth to become a forex trader but you have to keep in mind that you can't make any money through Forex trading when you have no profitable/unique strategy

  90. Thank you ๐Ÿ‘๐Ÿ‘๐Ÿ‘

  91. Guys, i entered in my email address for the FREE Ebook 'how to buy your first investment property' but i dont receive the download… i'm clicking the button but it doesn't work..

  92. Robert is wearing my favorite B0SS shirt.

  93. Sir
    I like ur channel but
    words u say written in Hindi language it will be more easier to understand ..

  94. living expences and study what more do you need for me $300 a fortnight thats it

  95. Love when Robert is on the board

  96. LOVE IT!!!!

  97. Thanks Mr. Kiyosaki for your videos.

  98. Love the vintage. Need way more of this!!

  99. https://www.facebook.com/Living-In-Tranquility-108620280485651/https://www.facebook.com/Living-In-Tranquility-108620280485651/

  100. That's a lot of information about business right there. Thanks !

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