Finally in frus- tration, a participant raised his hand and said, "I came to learn about investing. Why are you spending so much time on business?" My reply was, "There are two reasons. Reason number one is because what we ultimately invest in is a business. If you in- vest in stocks, you are investing in a business. If you buy a piece of real estate, such as an apartment building, that build- ing is also a business. If you buy a bond, you are also invest- ing in a business. In order to be a good investor, you first need 10 Rich Dad's Guide to Investing More than Buying, Holding and Praying Investing meant more to rich dad than buying, holding, and praying. This book will cover such subjects as: 1. The 10 Investor Controls: Many people say that invest- ing is risky. Rich dad said, "Investing is not risky. Being out of control is risky." This book will go into rich dad's 10 investor controls that can reduce risk and increase profits. 2. The 5 phases of rich dad's plan to guide me from hav- ing no money to investing with a lot of money. Phase one of rich dad's plan was preparing my mind to be- come a rich investor. This is a simple yet very impor- tant phase for anyone who wants to invest with confidence. 3. The different tax laws for different investors. In book number two, CASHFLOW Quadrant, I cover the four different people found in the world of business. They are: The E stands for employee. The S stands for self- employed or small business. The B stands for business owner. The I stands for investor. Introduction 11 The reason rich dad encouraged me to invest from the B quadrant is because the tax laws are better for invest- ing from the B quadrant. Rich dad always said, "The tax laws are not fair; they are written for the rich and by the rich. If you want to be rich, you need to use the same tax laws the rich use." One of the reasons why 10% of the people control most of the wealth is because only 10% know which tax laws to use. In 1943, the federal government plugged most tax loopholes for all employees. In 1986, the federal gov- ernment took away the tax loopholes enjoyed by the B quadrant from individuals in the S quadrant, individu- als such as doctors, lawyers, accountants, engineers, and architects. In other words, another reason 10% of the investors make 90% of the money is because only 10% of all in- vestors know how to invest from the four different quadrants in order to gain different tax advantages. The average investor often only invests from one quadrant. 4. Why and how a true investor will make money regard- less if the market goes up or crashes down. 5. The difference between Fundamental Investors and Technical Investors. 6. In CASHFLOW Quadrant, I went into the six levels of in- vestors.