'America Is Going To Be The Poorest Country In The World' Robert Kiyosaki Warns That 'The Slums Of Mumbai Are Spreading Across America' - Here Are His 3 Favorite Investments For Protecting Wealth

American entrepreneur and businessman Robert Kiyosaki is a vocal opponent of the Biden Administration’s policies. During an interview on the Finance with Sharan podcast, he said, “America is going to be the poorest country in the world, starting now.”

Kiyosaki, the author of “Rich Dad Poor Dad,” did the podcast interview while he was in India for Growth Summit India 2023 in September. He explained his visit to Mumbai while on this trip, saying, “I always go to slums. So this time, I went to the slums of Mumbai. And I’m looking at, talking to people. But what shocks most people is America never had slums like that. Today slums are everywhere across America.”

“The slums of Mumbai are spreading across America,” he added.

In the hour-long podcast interview, Kiyosaki discussed a variety of topics, including the importance of his three favorite investments. He also spoke on broader topics such as the changing dynamics of global finance and the U.S. dollar’s position as a global reserve currency. 

Bearish Views On The Dollar

Kiyosaki has often equated the U.S. dollar to toilet paper and referred to fiat currency as fake. While explaining his position on fiat money, he said, “Everybody who works for dollars, yen, pesos, rupee — this is fake. Stupid people work for this stuff.” 

Elucidating on how he views wealth, Kiyosaki referred to gold as God’s money, Bitcoin as people’s money and the fiat dollar as fake money. 

“The only way [the fiat dollar] is created is, somebody has to borrow money,” he said.

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Kiyosaki’s Favorite Investments

Kiyosaki claimed to hold about 60 Bitcoins but warned crypto enthusiasts that “you are messing with the federal government.” Instead, he has been a strong advocate for investing in physical and tangible assets such as gold and silver, which is as liquid as gold and the closest substitute.

While fiat money can be produced in unlimited quantities, precious metals have an inherent scarcity, making them a valuable hedge against inflation.

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Kiyosaki prefers physical gold and silver bullion, but investors have several options to gain exposure to precious metals. Osisko Gold Royalties Ltd OR acquires and manages precious metal royalties, allowing the company to earn a percentage of the revenue from mines across the globe. The benefit to investing in Osisko Gold Royalties as opposed to bullion is the company pays a dividend with a 1.33% annual yield. 

Real estate is another of Kiyosaki’s favorite investment classes. When addressing a question from the podcaster on buying a house versus renting a house, the American businessman said he owns 15,000 houses.

Retail investors can add real estate to their portfolios without having to purchase an entire property themselves or take on the headaches of becoming a landlord. Publicly traded REITs offer a simpler and less expensive way to invest in real estate. Companies like Realty Income Corp O own large portfolios of income-producing properties, and investors get a piece of the cash flow. Realty Income pays a monthly dividend to its shareholders with an annual yield of 5.7%. 

Fractional ownership is another popular option. There are even platforms available that allow investors to buy shares of single-family rentals with as little as $100 and earn passive income in addition to long-term gains. 

The third asset class on his list of favorites is oil. On many online platforms and discussions, Kiyosaki has referred to oil as the “lifeblood of civilizations.” 

But instead of owning oil company stocks, he prefers tangible investments like oil wells. He often mentions the Keystone XL Pipeline shutdown decision in 2021 and how it led to quadrupling per-barrel oil prices. 

Discovering oil and drilling a well may not be a realistic approach to the average investor, though. Buying shares in a company like Chevron Corporation CVX would provide equity in nearly 35,000 wells in the United States alone. The company also pays a 4.18% dividend yield.

Statements from highly successful entrepreneurs and businessmen should not be taken in the literal sense, but a lot of wisdom can be unpacked from Kiyosaki’s statements. However, it’s always important to do your own research and consult with an investment advisor before making any investment decisions.

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