The Wall Street Journal published a list of the best-selling personal finance books of 2006 in the weekend edition. The article focused on the fact that only one of the bestsellers was published this year. But there was something else that jumped out: How truly awful many of the best-selling titles were.
Number 1 was Robert Kiyosaki's perennial bestseller Rich Dad Poor Dad, which is easily the worst of the 200-plus investing/personal finance books I've read. The fact that it's written at about a third-grade level aside, it is chockful of hackneyed advice, bad advice, and just plain weird advice. He actually suggests insider trading as a way to make money in the stock market. There is also something vaguely creepy about Kiyosaki's resentment of his father who devoted his life to public service. Kiyosaki needs some counseling. For an excellent write-up of all that is wrong with this book, visit the site of real estate guru's guru, John T. Reed.
Kiyosaki also shows up at number three on the list, this time with the book Why We Want You to Be Rich, with the one, the only, and the all-too omnipresent Donald Trump. There's something really amazing about this collaboration. Most intelligent investors have long suspected that Donald Trump and Robert Kiyosaki were full of it. By collaborating with each other, each has successfully destroyed any credibility he might have had. It's like Michael Bolton's duet with Kenny G. It just makes you hate both of them a little bit more.
While a couple good books did make the list (Jim Cramer's Real Money and Joel Greenblatt's Little Book That Beats the Market), the number of bad titles underscores the serious financial literacy deficit in America. The fact that books that anyone who knows anything about money would know are garbage are selling out, combined with the sub-zero national savings rate, indicates a serious need for financial education from reliable sources.
Let's make 2007 a year for financial literacy. If you have a child, find out if his or her school teaches kids about money. If it doesn't, find out why not. If Robert Kiyosaki is the most popular source for financial advice in America, we are in serious trouble.











Reader Comments (Page 1 of 1)
1-03-2007 @ 3:11PM
Foz said...
I totally disagree with the person writing this article. Kiyosaki and Trump are very rich men, and have valuable advice from their experience in business. I highly admire Kiyosaki and he has drastically changed my perception of money. Why do you think the books are "best sellers"? It didn't just happen for no reason. It looks like the writer of this article may have some personal issues with Kiyosaki and Trump...more likely Kiyosaki.
It's no wonder why the author(s) is still an employee working their little day job, while Kiyosaki can choose to work or not and not to mention no worries about retirement (since they both are retired income wise)...however we need workers like this to have something to talk about once in a while...keep up the good "job".
1-03-2007 @ 8:15PM
NotFoz said...
I'm glad you're spending your money on their books Foz - it's a wonder you still spend time on the internet with your new found perception of money (I guess money *is* important).
Spare me fanboy.
1-04-2007 @ 11:46AM
Jeff Delagado said...
I'm not surprised that you didn't like Rich Dad, Poor Dad. That's because you are a dedicated employee that was taught to, "go to school, get good grades, get a SAFE, secure job with benefits. 401k, invest for the long term and diversify, diversify, diversify"
With this perspective, it's no wonder you didn't "GET" the meaning of Rich Dad, Poor Dad.
You'll be a great employee for life!!!!! Congrats on staying close minded!!
Have fun at your J.O.B- JUST OVER BROKE!!!!
Jeff Delagado
1-09-2007 @ 6:54PM
JBoss said...
Did any of the people commenting on this article view the write-up by John T. Reed? I had heard good things about "Rich Dad, Poor Dad" but after reading some of the review, I'm glad I didn't spend time or money on it.
For the people dumping on the author for working his day job and not "getting" the meaning of the book, I would ask how your financial status is going based on the advice of Kiyosaki.
Check out the review the author mentioned and see if you can answer any of his critiques. And when you see that the book contains much nonsense, please make sure to come back and acknowledge that the author of this article called it.
1-22-2007 @ 11:24AM
Bill said...
As Reed and others note, Kiyosaki has never done any significant business deals, real estate or otherwise.
Kiyosaki's sources of income are his speaking engagements and book sales.
Most of his speaking engagements are to Amway groups, which are a _major_ driver of his books sales.
He's repackaged the old "power of positive thinking" concept into a slightly revised format.
If you want specifics about the real estate business, buy the books on Reed's site.
1-22-2007 @ 10:53AM
wes said...
I read Rich Dad Poor Dad a little over a year ago. Using a lot of advice from the book i now earn over 30k a month residually. Hardly a bad book...unless you do enjoy working for others your whole life.
1-22-2007 @ 1:35PM
wes said...
btw: If you don't have $12 dollars to "waste" on a book and are that easily persuaded not to read something without checking it for yourself...you won't ever get it anyhow.
1-23-2007 @ 4:49PM
JF said...
Hmm. 7 reviews and only one person who liked Kiyosaki is making money from the advice he followed. Not a great track record.
More to the point, I concede that both Trump and Kiyosaki have a great skill indeed . . . convincing people to give them money. You want to get rich? Forget Trump and Kiyosaki's advice on real estate and get yourself a good book on marketing and sales. That's where the real cash is, and that's why these two fellows are loaded.
1-24-2007 @ 7:07PM
Ken said...
Zac, kudos to you for not Amazon-linking the book. BTW, the 1st review on Amazon is an insightful one. In addition to the questionable investment advice, it points out.... " I think, there is an underlying current of meanness in Kiyosaki's book. The way his "rich dad" kept people waiting and intimidated them with his power, the way Kiyosaki himself resented being left out of the parties held by the "rich kids." It's disturbing."
2-10-2007 @ 3:13PM
BigBuddha said...
Kiyosaki for all his faults does make some very valid points. Why not create alot of passive income from you investments, it's entirely possible to do using dividend yielding stocks/investments. Whilst you can't deny that trump knows real estate even if he is somewhat of a cartoon character.
But at the end of the Kiyosaki is rich and Trump is MEGA rich. End of Story.
2-27-2007 @ 11:42PM
kim.more said...
Hey, What you want to say i understudied. But Every author have a their own style of representation,Why do you think the books are "best sellers"? It didn't just happen for no reason. so change your mind set,think positive If their is any mistakes on those explore it,so the author can made necessary changes to improve quality of books,It's so useful for every body,for more books you may visit here
3-09-2007 @ 3:20PM
dorkydorkdorkdork said...
dude! kiyosaki's book is a good one, not the best though, but his concept are perfectly correct.
ask any rich chinese business man, even a jewish business man. they will all agree tho kiyosaki's concepts!
only thing i hate about the book tho, is that it lacks additional info, and i need more.. not just a plain old concept that i already know since i was young. (being brought up by chinese business minded uncles)
but this is a good book for beginners!
so stop whining! hahaha
3-19-2007 @ 7:16PM
Hibryd said...
Both Kiyosaki and Trump have made most (if not all) of their money off of book or endorsement deals, not their actual business skills. I second the author on this one; they're both attention whores and awful writers.