"What does that mean?" "We will get into that," said rich dad. "In the rich level of in- vesting, you will find out that things are different. At the rich level, you will find out that there are good losses and bad losses. Good debt and bad debt. Good expenses and bad ex- penses. At the rich level, your educational requirements and experience will need to go up dramatically. If not, you will not be there for long. Got it?" "I'm getting it," I replied. Rich dad went on to explain that if things do not follow the KISS (keep it simple, silly) formula, then the risk is probably high. He said, "If someone cannot explain the investment to you in less than two minutes, and you understand it, then ei- ther you don't understand, he doesn't understand, or you both don't understand. Whatever the case, it is best that you pass on the investment." He also said, "All too often, people try to make investing sound complex, so they use intelligent-sounding jargon. If someone does that, ask him or her to use simple English. If he or she can't explain the investment so a 10-year-old can un- derstand at least the overall concept, chances are he or she 144 Rich Dad's Guide to Investing does not understand it either. After all, all p/e means is how expensive the stock is. And a cap rate, which is a term used in real estate, just measures how much money the property puts or does not put in your pocket." "So if it is not simple, don't do it?" I asked. "No, I'm not saying that either," said rich dad. "All too often, people who lack interest in investing or have a loser's attitude will say, 'Man if it's not easy, I won't do it.' I often say to that type of person, 'Well when you were born, your par- ents had to work hard and potty train you. So even going to the toilet was at one time difficult. Today, hopefully, you are potty trained, and going to the potty by yourself is just part of the basics.'" Mental Attitude Quiz I have found that too many people want to invest in the investments of the rich without first having a strong fi- nancial foundation under them. All too often, people want to invest at the rich person's level because they are hurting financially and often need money desperately. Obviously, I do not recommend investments at a rich per- son's level unless you are already rich. Neither did my rich dad. Some people are fortunate enough that their financial plan to be "comfortable" creates enough excess cash to make them think they are rich. But unless they learn to think as rich people think, they will still be poor people. They will just be poor people with money. So the mental attitude question is: 1. If you are going to invest, or intend to invest, in what the rich invest in, are you willing to gain what rich dad called the 3-E's? They are: The Basic Rules of Investing 145 a. Education b. Experience c.