Wisdom of Rich Dad

NEW YORK (TheStreet) — At the start of the week, the financial media wires buzzed with news that legendary investor George Soros was planning to return funds to outside investors. Heading forward, the investor will continue to manage his family’s assets.

This move marks a dramatic transition for Soros. Although he has made a name for himself over four decades for his investing prowess, the billionaire is perhaps best known for his wildly successful-though-controversial currency trade in 1992 which earned him over $1 billion and led many to refer to him as, “the man who broke the Bank of England.”

Given Soros’ success and notoriety, it is not surprising that commentators have begun to discuss the reasoning for his decision. Many believe his decision was due to concerns about increased regulation stemming from the passage of the Dodd-Frank reform bill.

Soros is actually the latest well-known name from the financial industry in the headlines in recent months. In March, for example, it was announced that corporate raider Carl Icahn would be returning capital to outside investors.

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~ Robert Kiyosaki ~

The other day a friend of mine approached me excitedly, saying, “I found the house of my dreams. It’s in foreclosure and the bank will sell it to me for a great price.”

“How good is the price?” I asked.

“Just before the real estate market crashed, the seller was asking $780,000 for the property. Today, I can buy it from the bank for $215,000. What do you think?” she asked.

“How would I know?” I replied. “All you’ve given me is the price.”

“Yes!” she squealed. “Now my husband and I can afford it.”

“Only cheap people buy on price,” I replied. “Just because something is cheap doesn’t mean it’s worth the cost.”

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Entrepreneurs are well-known as risk-takers. Some of them are going all out while some others walk their journey based on calculated-risk. Considering the volatility of the business world today, here is why entrepreneurs should pursue the calculated-risk path.

 “Do or die” situation often brings out huge success because I believe people will generally exceed expectations when they are faced in a difficult situation (of course, some would crumble and flee from challenges…)

Aggressive risk-takers pursue “high risk, high gain” business opportunities, with a hope of striking a gold vein and being showered in riches. Some made it, but unfortunately, many fall deep into financial troubles – that almost always includes personal finances.

Why? Because aggressive risk-takers are going all out, including sacrificing their personal finances – in short, they put everything at stake. That is not really entrepreneurship – that’s more like gambling with “winners take all” principle.

In my opinion, when you are single responsible to nobody but yourself, you could take the all-out approach. However, if you have a family to support and/or are the primary bread winner of your family, going all-out is probably the biggest business mistake of all.

A story of a friend

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