"We talked about one of the basics of being an investor is to be prepared for whatever happens, rather than attempt to predict what is about to happen. I doubt if anyone can predict the market, al- though there are many people who claim they can. A person can predict something happening maybe once, maybe even twice, but I have never seen anyone predict anything regard- ing the market, three times in a row. If there is such a person, he or she must have a high-powered crystal ball." "But isn't investing risky?" I asked. "No," said rich dad. "Most people I talk to believe that investing is risky, so they keep their money in the bank, in money market funds or CDs." "As they should," said rich dad, pausing for a moment and then continuing. "For most people, investing is risky, but al- ways remember that it is not necessarily investing that is risky, it is the investor who is risky. Many people who think they are investors are not really investors. In reality, they are specula- tors, traders, or-even worse-gamblers. There are fine lines of distinction between those characters and a true investor. Don't get me wrong, there are speculators, traders, and gam- blers who do very well financially. But they are not what I would categorize as investors." "So how does an investor become less risky?" I asked. 148 Rich Dad's Guide to Investing "Good question," said rich dad. "Or maybe a better ques- tion might be, how do I become an investor who makes a lot of money with very little risk? And then hang on to the money I make?" "Yes. That is definitely a more accurate question," I replied. "My answer is the same. It is to keep things simple and un- derstand the basics. Begin with having your investment plans for security and comfort in place. Those plans are often han- dled by someone else you hope is competent and following an automatic no-brainer formula. Then you have to pay the price to become an investor who wants to make more money with less risk." "And what is that price?" I asked. "Time," said rich dad. "Time is your most important asset. If you are not willing to invest your time, then leave your in- vestment capital with people who are following the invest- ment plan of your choice. Many people dream of getting rich but most will not pay the price of the investment of their time." ' I could tell that rich dad was still very much into the men- tal preparation mode of our lessons. But by now, I was ready to go. I really wanted to learn to invest following his invest- ment formula. Yet he was still testing my determination to in- vest my time and effort to learn what I needed to learn. I therefore raised my voice so the tables around me could hear and said, "I want to learn. I am willing to invest my time. I will study. I won't quit on you. You are not wasting your time teaching me. Just tell me what the basics are to becoming a successful investor with very low risk." "Good," said rich dad.