I would rather invest in these investments because I find them more exciting and more challenging. It's not simply a matter of "Buy me 100 shares of this or sell 100 shares of that." Nor is it "Is the p/e high or is the p/e low?" That is not what being a sophisticated investor is about. Investing in these investments is about get- ting very close to the engine of Capitalism. In fact, some of the investments listed are venture capital investments, which for the average investor are far too risky. In reality, the invest- ments are not risky, it's the lack of education, experience, and excessive cash that makes the average investor risky. This Book is not about investments. This Book is about the investor. What Should I Invest In? 33 The Path This book is not necessarily about investments. This book is about the investor specifically, and the path to becoming a sophisticated investor. It is about you finding your path to ac- quiring the 3-Es: education, experience, and excessive cash. Rich Dad Poor Dad is a book about my educational path as a child. CASHFLOW Quadrant is Rich Dad Poor Dad part II and is my educational path as a young adult between the years 1973 and 1994. This book, Rich Dad's Guide to Investing, builds on the lessons from all previous years with my real life experiences and converts the lessons into the 3-E's in order to qualify as a sophisticated investor. In 1973,1 barely had $3,000 to invest and I did not have much education and real-life experience. By 1994,1 had be- come a sophisticated investor. Over 20 years ago, rich dad said, "Just as there are houses for the rich, the poor, and the middle class, there are invest- ments for each of them. If you want to invest in investments that the rich invest in, you have to be more than rich. You need to become a sophisticated investor, not just a rich per- son who invests." The Five Phases of Becoming a Sophisticated Investor Rich dad broke my development program into five distinct phases, which I have organized into phases, lessons, and chapters. The phases are: 1. Are You Mentally Prepared to Be an Investor? 2. What Type of Investor Do You Want to Become? 3. How Do You Build a Strong Business? 4. Who Is the Sophisticated Investor? 5. Giving It Back. 34 Rich Dad's Guide to Investing This book is written as a guide. It will not give you specific answers. The purpose of this book is to help you understand what questions to ask. And if this book does that, it has done its job. Rich dad said, "You cannot teach someone to be a so- phisticated investor. But a person can learn to become a so- phisticated investor. It's like learning to ride a bicycle. I cannot teach you to ride a bicycle, but you can learn to ride a bicycle. Learning to ride a bicycle requires risk, trial and error, and proper guidance. The same is true with investing. If you do not want to take risks, then you're saying you do not want to learn.