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The author of the personal finance book “Rich Dad Poor Dad,” Robert Kiyosaki, has warned his followers of an impending global economic crisis and recommended a strategy inspired by one of the wealthiest investors worldwide, Warren Buffett.
According to Kiyosaki, Buffett, the head of investment firm Berkshire Hathaway, typically acquires shares of undervalued companies with robust fundamentals and holds them for years, or even decades. The author highlighted Buffett as a prime example of how seasoned investors prepare for significant market downturns by maintaining substantial cash reserves in anticipation of better opportunities. Building large cash reserves will enable investors to purchase assets during market declines and panic sell-offs, Kiyosaki stated.
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He believes that Bitcoin, gold, and silver could see considerable price increases as the financial crisis drives investors to seek alternative means of preserving their wealth. The crisis may shift investor focus toward assets that operate outside traditional financial systems, specifically Bitcoin and precious metals.
“Cash is not trash during a downturn. Why did Warren Buffett sell stocks and bonds and now hold billions in cash? Because he keeps his money ready to acquire valuable assets after a crash. Last week, I spent millions on purchasing oil wells, gold, silver, and Bitcoins. I am confident that after a significant downturn, the prices of gold, silver, and Bitcoin will rise. However, I could be mistaken. As long as Iran continues to attack oil tankers in the Strait of Hormuz, prices for oil from my Texas wells keep increasing,” Kiyosaki wrote.
Recently, he predicted the collapse of BlackRock, which launched the iShares Bitcoin Trust (IBIT) spot exchange-traded fund two years ago, as well as private credit funds from which investors have been withdrawing capital lately.
