Robert Kiyosaki makes reference to a “sophisticated investor”. I hear this term every now and them but does anybody know what is means and how do people get access to products these people use.[cap]
sophisticated as opposed to mug punter – its really not a ‘club’ or anything, or something you can pick up by doing night school over a semester – its a funny one, i guess its a mix of ‘street smart’, formal education discipline and an understanding of finance and markets (property or other investment platforms)
however, if it is offered as a semester at the local tafe, pls let me know…
cheers
brahms
If you don’t ask, the answer is no!!
Hi petersmail,
It kind of reminds me of when the word “entrepreneur’ first started getting bandied around, no-one (not even the dictionaries) had a clear cut definition of its meaning, and yet everyone wanted to be one, and tafes/universities adopted the word, offering it as a specialised form of training.
Sophisticated???? Hmmmmmmmm, grown up, mature, versed, experienced, the list could go on!!!! Just another word which is the “flavour” at the moment, and as rich as your cafe lattes, amongst the affluent and the hopeful members of society.
[biggrin]
JOI’ve also heard the term a few times and i believe that in New Zealand they are referred to as “habitual” investors.
Sophisticated or habitual investors are generally those that invest for a living professionally and do at least 6 trades a year.
It’s a while since I read the book but I distinctly remember that Robert Kiyosaki (in Rich Dad Poor Dad) specifically defined a sophisticated investor according to their “wealth”. I cant remember the figures exactly, but I think it was something along the lines of someone with net assets >$1 mil or a personal income >$200k pa. I guess when a person reaches such levels of “Wealth” they suddenly become sophisticated. To whom this is relevant I have no idea! It’s in the book somewhere.
Thanks agent smith,
I haven’t read the book, but it is good to have the author’s definition.
As for that kind of criteria, I would imagine, in that case, that there are quite a few “sophisticated investors” among us!!!!! Although frankly IMO, any investor who does his/her homework, invests wisely and is generally happy (financially and personally) to me, is “sophisticated” regardless of how much they are worth or what they earn!!!!Jo
FYI
US definitions according to the corporations act:
Sophsticated Investor:
An investor who has sufficient knowledge and experience with investing that he/she is able to evaluate the merits of an investment. A requirement of certain exempt offerings.
Accredited Investor:
The SEC designation for an individual or entity meeting any of the criteria listed below. Certain restricted offerings, limited partnerships, and angel investor networks are open only to accredited investors. opposite of nonaccredited investor.SEC criteria:Any director, executive officer, or general partner of the issuer of the securities being offered or sold, or any director, executive officer or general partner of a general partner of that issuer.Any natural person whose individual net worth, or joint net worth with that person’s spouse, at the time of his purchase exceeds $1,000,000.Any natural person who had individual income in excess of $200,000 in each of the two most recent years or joint income with that person’s spouse in excess of $300,000 in each of those years and has a reasonable expectation of reaching the same income level in the current year.Any trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the securities offered, whose purchase of the securities is directed by a person who has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment.Any organization that was not formed for the purpose of acquiring the securities being sold, with total assets in excess of $5,000,000.And, any entity in which all of the equity owners are Accredited Investors.
Hey Petersemail,
Kiyosaki defines this and the other 6 levels of investor in his book Cashflow Quadrant.
Well worth buying the book IMO. Helps if you have read rich dad poor dad first.
cheers,
Ben Carbery
petersemail asked:
” does anybody know what is means and how do people get access to products these people use”
oh dear, peter… that is EXACTLY what kiyoasaki wants you to think. Sometimes people use terms that have emotive connotations… wanna be a “sophisticated” investor? (looks, sounds and feels like expensive cars, lifestyle, women draped off you because you are so “sophisticated”.) then if you want to be this kind of investor… why not try my “super secrets of the sophisticated investor” kit? hehe. It has my sophisticated games, deck of sophisticated money cards, a sophisticated keyring… you get the picture.
No amount of money is gonna make one sophisticated if one is relying on products to get one there. As for me, i’d rather be like a character out of charles dickens- pip- with rough hands and no sophistication at all- than try to emulate some term that has no real meaning, but acts as a marketing tool to sell more products to aspirants.
kay henry
Originally posted by kay henry:petersemail asked:
” does anybody know what is means and how do people get access to products these people use”
oh dear, peter… that is EXACTLY what kiyoasaki wants you to think. Sometimes people use terms that have emotive connotations… wanna be a “sophisticated” investor? (looks, sounds and feels like expensive cars, lifestyle, women draped off you because you are so “sophisticated”.) then if you want to be this kind of investor… why not try my “super secrets of the sophisticated investor” kit? hehe. It has my sophisticated games, deck of sophisticated money cards, a sophisticated keyring… you get the picture.
No amount of money is gonna make one sophisticated if one is relying on products to get one there. As for me, i’d rather be like a character out of charles dickens- pip- with rough hands and no sophistication at all- than try to emulate some term that has no real meaning, but acts as a marketing tool to sell more products to aspirants.
kay henry
Originally posted by Monopoly:Hi petersmail,
Sophisticated???? Hmmmmmmmm, grown up, mature, versed, experienced, the list could go on!!!! Just another word which is the “flavour” at the moment, and as rich as your cafe lattes, amongst the affluent and the hopeful members of society.
[biggrin]
JOLoL if you dont understand do you just take a wild guess and totally discredit the concept. Imagine if someone tried to discredit +ve geared property……..
Products for sophisticated investors do exist.
They carry more risk generally and are more complex then shares, managedfund investments that people are familiar with. The main reasons they and are not suitable for the average person is because of a/ funds required to participate (at call) /b education c/ risk/stress management d/ my initial impression >> a bit of a boys club…
I have a friend that works for one of these large broking/merchant banking institutions and the investment concepts available to specific clients and other retail institutions he talks about hurt my head
I will stick to Derivatives and shares!!
Hi everybody,
My first ever posting has only been here for 1 day and I am amazed at the high level of intelligence on this forum. So many people willing to try and help each other out is fantastic.
I know some people love Robert Kiyosaki and some despise him. I find him very motivational but like any advise will check it out as best i can before “jumping in”.
I have his game cash flow on cdrom and will let you know if it help with + prop investing.
thanks for your opinions and keep them coming.
Peter
Originally posted by petersemail:Hi everybody,
My first ever posting has only been here for 1 day and I am amazed at the high level of intelligence on this forum. So many people willing to try and help each other out is fantastic.
I know some people love Robert Kiyosaki and some despise him. I find him very motivational but like any advise will check it out as best i can before “jumping in”.
I have his game cash flow on cdrom and will let you know if it help with + prop investing.
thanks for your opinions and keep them coming.
Peter
I like Robert Kiyosaki for the train of thought.But with the amount of books its a bit like the soapie “The Days of Our lives” as in you can skip a few and still be on top off whats happenning [biggrin]
For anyone that hasn’t read Kiyosakis books I will save you a $100 and a couple of hours reading:
* your house is not an asset as it doesnt generate income
* you can be one of 4 things – wage earner,self employed, investor, business owner. Wages suck, be a business owner* get out of your day job asap and make a buck – anything that makes a profit after all costs is good. Debt is good so long as it is for income generating activities, not luxuries.
thats pretty much it, pad that out and put it in big font and hey presto – millionaire trainer.
I enjoyed his books tho, a nice and light motivational read.
Extensive list of ‘Off The Plan’ property available for sale in Perth.John – 0419 198 856
actually this is what your typical sophisticated investor looks like – dont mess with him[cool2]
You must be logged in to reply to this topic. If you don't have an account, you can register here.
