Investorial

GuruWatch, launched recently by Flexo (of Consumerism Commentary blog fame), intrigued me with his recent collection of book reviews about Robert Kiyosaki and Donald Trump’s new book - Why We Want You To Be Rich.

I guess these 2 “gurus” didn’t mind simply swapping advisors. The opportunity to work on a book together probably incubated from the time they met at those Learning Annex seminars. Are two “gurus” really better than one? Or are the sum of the parts less than the whole? Go ahead and read the reviews, but I believe the comments are more interesting! It’s wonderfully entertaining to analyze the polarizing effect that these gurus have on readers.

Personal Finance Extremism
Kiyosaki and Trump fans will defend them to the death; dismissing the nay-sayers as merely disappointed people desperate for a “how-to” book. And upon not finding one, nay-sayers turned critics become bitter and lash out because they are unable to “think” for themselves. Meanwhile, the fans will rave at the “wealth of information”, “insightful real strategies”, and the fact that Trump and Kiyosaki are “proven” models of success.

The other camp of critics will cringe at the lack of substance contained in the pseudo-advices; cleverly packaged to make more money for its authors. They conjure Trump and Kiyosaki in the images of ego-maniacal marketing salesmen and point out the availability of better models of success out there.

Which conflicting perspective will you believe? I guess Islam isn’t the only subject worthy of fundamentalism and extremists. Forgive me for sitting on the fence, but anything that can get people off the couch to learn more about finances can’t be a bad thing, right? However, my own evolution as a former Rich Dad reader leads me to agree in disgust about the thinly veiled informercial-like “advice” in these books. The Rich Dad series helped me get started, but it is no longer a part of what I view as good reading for someone still continuing his personal finance, business, and investing journey.

The Donald’s Evolution
Ever since his comeback into the spotlight from the first season of The Apprentice, Donald Trump has steadily increased his media exposure. But on this book, Donald comes off quite tempid, rather than his usual flamboyant self; perhaps when compared side-by-side with Kiyosaki. Donald Trump wrote carefully and politically about general ideas and concepts, leaving the dissection and specifics to Kiyosaki.

As an investor, I have a simple question for Donald Trump - how focused is he on his on business? His existing ventures and new ventures have not brought him more wealth, so what grade would you give Donald Trump at running his own business?

On a recent edition of Larry King Live, Trump plugs his new line of Trump vodka. Always, the savvy marketer, in classic Trump mannerism, he tells the audience that “he’s been told that [the vodka] is one of the best out there”. This is classic misdirection being employed as a false testimonal. Who told him? The audience is led to believe that Trump vodka is recognized and confirmed by others, while the truth is far from the perception. This example is a fitting end to this section, as Donald Trump merely serves as a “confirmation” for Robert Kiyosaki in the book, and vice-versa.

Same Old Kiyosaki
Robert remains the consummate marketer. He may indeed have his pulse on trends, but it remains to be seen if he merely uses them in his books. Like the time he talked about IPOs in the late 1990s, real-estate throughout its boom, and the fact that he talks incessantly about oil, gas and buying silver, gold. Most people hoping to profit from trends would rather not say anything to avoid competition. And the only time they would invite more investors to join is to keep pumping up their investments! It almost seems like Kiyosaki is able to consistently recognize the hottest investment du jour. So why not take a shot at the most prolific investor, Warren Buffett?

The Wall Street Journal’s Jonathan Clement easily and logically dissects the macho brovado displayed by Kiyosaki as he declares that “Donald and I can beat Warren’s rates of returns on investment. He may be richer, but we can get richer faster using our own methods and use less money.” Did you see something wrong here?

Let me offer my 2 cents on this issue. Where was Kiyosaki when Warren started investing in PetroChina? I know why Kiyosaki uses “less money”, because he DOES HAVE LESS MONEY than Warren! How would you like to be responsible for putting Warren’s enormous fortune to work? The strategies employed for such a sum would surely have to be different than the puny fortune that Kiyosaki keeps touting.

There is one thing I will note about Kiyosaki’s investment recommendations - he has consistently bashed mutual funds from the beginning. I would be the first to agree with the hilarity of the current mutual fund industry. I also desire lots of change on that subject, but I also believe that mutual funds has its place and uses for many people out there. But I believe Kiyosaki is merely exploiting the basics of marketing 101: to be heard, and to be regarded as unique, find something generally accepted by the public and tear it apart!

I Am Jack’s Financial Conscience…
I could recommend this book as a feel-good, motivational, self-improvement piece of literature, but I’d feel dirty all over knowing that most readers will take the half-assed advice disseminated between the covers as sound personal finance concepts. Nobody is as good as Kiyosaki in keeping the “self-improvement” addiction going in their readers. In this latest saga, Donald Trump almost seems like a decorational prop. I’ll end this article with a line from one of my favourite movies - “Self improvement is masturbation“. I wonder if anybody knows which film that is?

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