'Rich Dad Poor Dad' author echoes Warren Buffett's signature warning against trying to time the market
- Warren Buffett advises against trying to time the market, and recommends holding for the long term.
- Robert Kiyosaki just recommended a dollar-cost averaging approach aligned with Buffett's strategy.
Warren Buffett has endlessly warned casual investors against trying to time the market, and recommended they regularly put small sums of money to work instead. Robert Kiyosaki echoed the famed stock picker's advice in a X post on Sunday.
"Gold dropped $10 today. Silver 14 cents. This is where 'Dollar Cost Averaging' pays off. Rather than pretend to be Warren Buffet picking bottoms I am an average investor 'accumulating' the asset I want for the long term," Kiyosaki wrote.
"I have been accumulating gold, silver, BC and real estate for years. My first gold coin cost $50. Today that same coin is worth $2000. You can become rich by being an average investor, using dollar cost averaging to get rich. Take care."
Buffett, the billionaire CEO of Berkshire Hathaway, might push back on the idea that his skill is "picking bottoms" — he famously seeks to buy "wonderful businesses at a fair price," and says his "favorite holding period is forever."
However, Buffett would undoubtedly agree with Kiyosaki that unsophisticated investors can get rich by spreading their purchases over time and holding for the long run. That strategy evens out the peaks and troughs in the prices they pay, and enables their investments to compound in value for decades.
Kiyosaki — the author of "Rich Dad Poor Dad" and a personal-finance guru — has repeatedly touted gold, silver, and bitcoin as better bets than the dollar. He's bearish on the greenback as he expects inflation and rapid growth in the US money supply to erode its value for years to come.
"Gold will soon break through $2,100 and then take off. You will wish you had bought gold below $2,000. Next stop gold $3,700. Bitcoin testing $30,000. Next stop Bitcoin $135,000. Silver from $23 to $68 an ounce. Savers of fake dollars F'd. Please tell your friends to 'Wake up.' Take care," he posted on X last week.
Kiyosaki is known for his dramatic predictions and dire pronouncements. For example, he sounded the alarm this summer on a "severe stock market crash," and not just a recession but a "depression."
However, the benchmark S&P 500 and tech-heavy Nasdaq Composite indices have advanced 10% and 24% this year. Meanwhile, the US economy has continued to grow, unemployment has remained near historic lows, inflation has dropped from over 9% last summer to below 4% in recent months, and the Federal Reserve has signaled it's nearly finished with its painful procession of interest-rate hikes.