Warren Buffett may be one of the greatest investors to the world, but “Rich Dad Poor Dad” author Robert Kiyosaki says following the Oracle of Omaha won’t make you stand out from the crowd.
Sharing his thoughts on investing on “The Iced Coffee Hour” podcast in October, Kiyosaki called the Berkshire Hathaway (NYSE:BRK, BRK.B)) chair’s advice the “worst” he’s heard. Buffett’s investing approach is for average investors, and real wealth comes from owning assets like oil and real estate, not from buying stocks, he said.
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“Warren Buffett, I could never follow the guy,” Kiyosaki said. “I personally don’t like what Warren Buffett says, but he’s successful at it. But I don’t play the stock market. It’s a waste of time for me. So I drill for oil and I get that and then I buy apartment houses with my money from my oil.”
‘Don’t Be Average’
The reason Kiyosaki avoids stocks is the lack of control, he told hosts Graham Stephan and Jack Selby. Assets like oil, gold, and real estate give him more control and tax advantages, he said.
“Warren Buffett is for average people,” Kiyosaki said. “Warren Buffett speaks for the average man. And my my saying to you guys is don’t be average. The stock market and the 401(k) is set up for losers. I’m an entrepreneur, not a freaking loser. I control the oil well. I control the apartment houses.”
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‘If You Are a Loser, Have a Good Time’
Kiyosaki pushed back on a clip shown to him by Stephan and Selby in which Buffett warned that leverage can be dangerous and can cause heavy losses for investors. Buffett’s views don’t add up because he is heavily involved in the insurance business, where a lot of leverage is used, Kiyosaki said.
Berkshire Hathaway runs a large insurance portfolio that includes Geico, General Re and National Indemnity.
“He’s full of s**t,” Kiyosaki said. “Buffett’s a smart boy, but his thing on leverage, he’s talking about the average guy, yet he bought an insurance company. Insurance companies are the biggest leverage there is because they have to leverage your money. So, he doesn’t tell the whole story.”
Competing Wealth Strategies Are Leaving Many Investors Unsure Which Approach Fits Their Goals
Debates like the one between Buffett’s long-term stock investing philosophy and Kiyosaki’s focus on leveraged real assets highlight how divided financial strategies can be. While both approaches have produced significant wealth for their proponents, they rely on very different assumptions about risk, control, and long-term stability.
For many investors, the challenge isn’t choosing a “right” philosophy, but understanding which strategy aligns with their own financial situation and goals. Platforms like AdviserMatch connect individuals with financial professionals who can help evaluate different approaches to wealth building and build a strategy tailored to their long-term objectives rather than a one-size-fits-all investing mindset.
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