Page 129 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

THE Two THINGS You INVEST I 123

A Finallhought

PASSIVE INVESTORS ACTIVE INVESTORS

Invest money Invest time

Invest in: Invest in:
A]ob Businesses
Savings RealEstate
Getting Out ofDebt More AdvancedVehicles
Mutual Funds
Diversification

Lack ofMoney Abundance ofMoney

Fear Fun

This comparison shows that there are other differences that separate
passiveinvestors from active investors. Not only do they invest more time,
they invest in different investment vehicles. I put businesses at the top of
the list because building a business ofmore than sao employees requires the
most financial skill, education and experience.
Real estate is next, requiring more financial skill, education and
experience than, let's say, stocks, bonds or mutual funds. Remember the big
difference between investors in stocks, bonds and mutual funds and real
estate investors is that real estate involves leverage. Therefore, you have to be
more careful. And real estate also requires management skill, experience and
expertise. It is the use of leverage and the requirement of extensive
management that causes most investors in paper assets to fail when
attempting to invest in real estate.
The more advanced investment vehicles are such things as hedge funds,

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