Page 139 - Why We Want You To Be Rich - Donald Trump, Robert Kiyosaki.pdf

WINNERS TAKE CONTROL I 133

requires at least a license to ptove the driver has had training and can drive.
What makes matters worse is that the investment advisors, financial
planners and brokers have no control either, which may be why they
recommend "diversify,diversify, diversify."Diversification is required when
you do not have control. Warren Buffett does not diversify because he
invests for control. He buys either all ofthe business or a controlling share

of the business.
Donald and I love business and real estate because we have control. So
what do we control? Most ofthe answer is found in the following diagram

of a financial statement:

INCOME

ExPENSES

AssETS LIABILITIES

t As entrepreneurs and real estate investors, the six controls we want are:

t 1. Income

2. Expense
3. Asset
4. Liability
S. Management
6. Insurance

~."'_",,"- ....... ...... ....... -.. Two MEN. ONE MESSAGE__
Y "tit