"If you want to become really rich," he said, "then one of the things you will have to change is your point of view on what you think is risky and what is secure. What the poor and middle class think is secure, I think is risky." The Sophisticated Investor 277 I thought about that statement for a brief moment, letting the idea sink in that what my dad thought was secure, my rich dad thought was risky. "I don't fully understand." I finally asked. "Can you give me an example?" "Sure," said rich dad. "Just listen to our words. Your dad al- ways says, 'Get a safe, secure job.' Is that correct?" I nodded my head. "Yes, he thinks that is a secure way to run your life." "But is it really secure?" asked rich dad. "I guess for him it is." I replied. "But you see it differently?" Rich dad nodded his head and then asked, "What often happens when a public company announces a large layoff of employees?" "I don't know." I replied. "You mean what happens when a company fires a lot of employees?" "Yes," said rich dad. "What often happens to the price of their stock?" "I don't know," I replied. "Does the share price go down?" Rich dad shook his head. Quietly he said, "No, unfortu- nately when a publicly listed company announces a large lay- off of employees, the share price of that company often goes up." I thought about that statement for a moment and then said, 'And that is why you have often said there is a big differ- ence between people on the left side of the CASHFLOW Quadrant and people on the right." Rich dad nodded his head. 'A big difference. What is se- cure for one side is risky to the other." "And that is why so few people become really rich?" I asked. Again rich dad nodded his head and repeated, "What seems secure to one side seems risky to the other side. If you want to be rich and keep your wealth for generations, you must be able to see both sides to risk and security. The aver- age investor only sees one side." What Seems Secure Is Really Risky As an adult, I now see what my rich dad saw. Today, what I think is secure most people think is risky. Page 278 reflects some of the differences. In conclusion, what looks secure to some investors seems risky to others. Chapter 25 The Inside Investor The inside investor is someone who is on the inside of the in- vestment and has some degree of management control. Although an important distinction of the inside investor is the aspect of control over management, the most important distinction rich dad pointed out was that you don't need to have a lot of income or net worth to be considered an inside investor. An officer, director, or owner of 10% or more of the outstanding shares of the corporation is an inside investor. Most investment books are written for people who are on the outside of the world of investing. This book is written for people who want to invest from the inside. In the real world, there is legal inside investment activity as well as illegal insider activity.