Robert T. Kiyosaki


wealthymatters.com

If being wealthy is important and you are on the look out for reading material to help you make money, sooner rather than later you are bound to come across books of the Rich Dad Poor Dad series authored/co-authored by Robert Kiyosaki and his associates.

Robert Kiyosaki,his books and educational materials are pretty controversial.He has his fans and his trenchant critics.

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10 Ways To Get Rich


wealthymatters.com

What better person to tell you how to become wealthy than one whose name  is a long term fixture on the Forbes List?Here are Warren’s tips on how to get rich,put together by Alice Schroeder: Read more of this post

Tilson On Common Mental Mistakes


wealthymatters.comWealthymatters reader , Andy Cheung , in response to yesterday’s post : Some Assumptions To Check Before Investing has sent a  link  to an excellent article by Whitney Tilson on common mental mistakes humans persistently make while investing . I think the article should be essential reading for all people who hope to make it good by investing.I didn’t want to just leave the link hidden among the comments,so I have posted a copy of the list of mistakes people make here.The link below will take you to the complete explanation of these mistakes.

1)Overconfidence

2)Projecting the immediate past into the distant future

3)Herd-like behavior (social proof), driven by a desire to be part of the crowd or an assumption that the crowd is omniscient

4)Misunderstanding randomness; seeing patterns that don’t exist

5)Commitment and consistency bias

6)Fear of change, resulting in a strong bias for the status quo Read more of this post

Some Assumptions To Check Before Investing


wealthymatters.comThe human brain is fascinating in the way it can use a rough form of inductive logic to help us make sense of our very complex world.But the human brain is not infalliable.Mental heuristics in the form of common sense,educated guesses,rules of thumb,intuitive judgments,etc.can help us find a good enough solution fast, when an exhaustive analysis is impractical.But at the same time such heuristics can lead us to over-generalize and make mistakes.Here is a checklist of some common traps to avoid falling into while investing:

  • Correlating GDP growth and market performance. High GDP growth rates don’t always translate into stockmarket outperformance. This may be due to three reasons—(a) unlisted companies may contribute to a large part of GDP growth; (b) while the listed companies’ net profit may grow, dilution of capital through periodic issuances will adversely affect earnings per share (EPS) and return-on-equity (RoE), thereby, impacting stock prices; and (c) the nature of stockmarkets, which serve as leading indicators, resulting in prices surging ahead well ahead of the actual GDP growth and, then, plateauing out for a long period once the growth actually materialises. Read more of this post
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