Robert Kiyosaki, author of the best-selling book 'Rich Dad Poor Dad,' has outlined his personal investment strategy, underscoring its divergence from the approach of Berkshire Hathaway CEO Warren Buffett. Kiyosaki describes himself as an 'average investor' who focuses on accumulating assets rather than timing the market.
Kiyosaki's Philosophy: Accumulate, Don't Pick Bottoms
In a recent post on social media platform X, Kiyosaki stated: 'Rather than pretend to be Warren Buffett picking bottoms, I am an average investor “accumulating” the asset I want for the long term. I have been accumulating gold, silver, bitcoin, and real estate for years.' He emphasized that dollar-cost averaging (DCA) is the key to building wealth for ordinary people.
He shared a personal example: 'My first gold coin cost $50. Today that same coin is worth $2,000. You can become rich by being an average investor, using dollar cost averaging to get rich.' He added that recent drops in gold (down $10) and silver (down 14 cents) are precisely where DCA pays off. Kiyosaki believes that consistent accumulation, rather than trying to predict market bottoms, is a more reliable path to financial freedom.
Contrast with Warren Buffett's Value Investing
Kiyosaki's approach stands in stark contrast to Buffett's value investing methodology. Buffett, known as the 'Oracle of Omaha,' focuses on investing in businesses with 'long-lasting favorable economic characteristics and trustworthy managers.' He has famously described Bitcoin as 'probably rat poison squared' and called it a gambling token with no intrinsic value. In 2022, Buffett said he wouldn't pay $25 for all the Bitcoin in the world.
Unlike Buffett, Kiyosaki is a vocal advocate for Bitcoin and other hard assets. He views them as hedges against currency debasement and economic uncertainty. While Buffett avoids Bitcoin entirely, Kiyosaki includes it as a core component of his long-term accumulation strategy alongside gold, silver, and real estate.
Kiyosaki's Bold Price Predictions
Kiyosaki has repeatedly made aggressive price forecasts for Bitcoin, gold, and silver. Last week, he predicted Bitcoin would reach $135,000, gold would soon break through $2,100 and then take off, and silver would rise from $23 to $68 per ounce. In August, he warned that in the event of a global economic crisis, Bitcoin could surge to $1 million, gold to $75,000, and silver to $60,000. Earlier this year (February), he projected Bitcoin to hit $500,000 by 2025, gold to $5,000, and silver to $500 within the same timeframe.
These predictions reflect his conviction that traditional fiat currencies, especially the US dollar, are at risk due to mounting debt. He encourages ordinary investors to use dollar-cost averaging to accumulate hard assets and Bitcoin, arguing that this strategy has worked for him and can work for others. At the time of writing, Bitcoin trades around $34,000, gold near $1,980, and silver around $23.
Kiyosaki's message resonates with a growing number of retail investors who seek an alternative to conventional stock market investing. While Buffett remains skeptical of cryptocurrencies, Kiyosaki's 'average investor' narrative offers a simple, disciplined approach that many find appealing. He concludes: 'Take care of your money. Get rich by being an average investor using dollar cost averaging.'