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Ken M asked in Business & FinanceInvesting · 1 decade ago

What does the "Rich Dad, Poor Dad" author mean when he says "Mutual Fund Moron"?

I haven't read the book yet, but I listen to his podcasts. I've heard him use this term and I would love some insight on what it means to him and why.

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  • bmi=22
    Lv 4
    1 decade ago
    Favorite Answer

    While it is true you should not blindly put your money into any old mutual fund -- because there are many out there that are not good investments -- I would not take anything Kiyosaki says too seriously as I think the man's a fraud.

    The sad thing is though that often enough, you do not have much choice in mutual funds when it comes to contributing to your employer's 401K plan.

    Read up on mutual funds before choosing one.

    I found a chapter in one of Jim Cramer's books (can't remember which one -- but not the most recent one) to be very helpful.

    I don't completely agree with Ric Edelman but one of his books gives a good explanation of mutual funds, how they work and what to look for when investing in one.

  • 1 decade ago

    Ken, it would take at least a dozen pages to adequately explain this. I'll try to give you the short version and will begin with a Peter Lynch quote. "Amateur stock picking is a dying art, like pie baking which is loosing out to packaged goods. A vast army of mutual fund managers is paid handsomely to do for portfolios what Sara Lee did for cakes". The point is that only a numb skull would turn his money over to someone else to manage and accept the paltry returns provided by mutual funds.

    Of course in order to do it yourself you have to learn how to analise stocks. This however is not particularly difficult and if you have demonstrated the wherewith all to accumulate savings to invest you have all the mental aptitude necessary to learn how to manage your investments yourself and utterly wax the average mutual fund managers performance year after year.

    The financial services industry of course doesn't want you to realize this because there is far to much money in commissions and management fees to be lost if people aren't kept stupid.(morons)

    I'm not a fan of Robert Kawasaki but on the issue of mutual funds I am in agreement. My own take; Mutual funds are for people who don't like to think.

    To asses the popularity of this last comment check the number of thumbs down the entry gets.

  • 1 decade ago

    Not sure what he means by "Mutual Fund Moron", but Kiyosaki well known for speaking out against mutual funds and other conventional investments. He is best known for promoting multi-level marketing and real estate investments.

    If I may interject my own opinion: I've read some of his books and articles, and find some of his "logic" to be misguided. Please be cautious with his advice, and be sure to get your facts from an unbiased source before taking any action.

    Source(s): I am an certified financial planner, and chartered financial consultant
  • Anonymous
    1 decade ago

    Robert Kiyosaki is what one would call a "concentrated" investor. He would rather have a few investments instead of being diversified with mutual funds. That is basically his message. Diversification, dollar cost averaging, compounding, and time have proven over the years to be very consistent.

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  • Anonymous
    1 decade ago

    I haven't read the books, but I assume he is referring to people who blindly put money into a mutual fund and let someone else take care of it, because they are too ignorant to do a little bit of work themselves.

  • Anonymous
    1 decade ago

    Im guessing he is suggesting, investors in Mutual Funds are losers, or even misguided ..etc.

    As some - Funds charge annual fees, and also Management fees etc.

    ETFs are very popular - new options when interested in - index or commodities funds, cheaper way to buy funds.

    http://www.etfinvestor.info/

  • Anonymous
    1 decade ago

    suggest u read n' understand info.

    cause my interpretation may b different than yours.

    some of what he say does not work for every one.

    Source(s): biz owner
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