Michael Arringtonâ€™s blog post leads to a FBI investigation into price fixing and collusion among angel investors. I have a lot of respect for Arrington for doing this, taking a stand against friends is never easy but heâ€™s right, what those angel investors was doing (if true), was wrong and I would be enraged (although not shocked) if I was running an early stage start up and got taken advantage by these vultures.
CBC Marketplace exposes what goes on behind the scenes at the Rich Dad, Poor Dad seminars being offered across Canada. This is what they found.
Marketplace also discovered that claims by at least one trainer were exaggerated. The trainer said he made millions on a mobile home park in Saskatchewan â€” a park that turned out to be non-existent.
Bob Aaron, a Toronto real estate lawyer, said workshops like these are not only a waste of people’s money, they’re also teaching people techniques that normally don’t work.
For instance, Mousseau told people who are interested in buying real estate to simply start knocking on doors and asking homeowners if they want to sell.
Aaron, who’s handled thousands of real estate files, said some of Mousseau’s claims were just plain unusual, including his advice that if you buy 10 condos, a developer will give you two for free.
"Theyâ€™re not going to give you two for free," Aaron said. "Iâ€™ve never seen that happen.
According to CBC, the company that offers the course, Tigrent Learning has been offering get-rich workshops for more than 10 years, and has a history of run-ins with regulators and unhappy customers.
Slate has reviewed the book here.
Rich Dad‘s running theme is that you’ll never get rich by chasing a higher salaryâ€”apparently the Protestant work ethic is for suckers. What you need to do is "concentrate your efforts on only buying income-generating assets." Such as? It turns out that whenever Kiyosaki offers an example from his life, it almost invariably involves real-estate speculation. (It’s hard to judge the veracity of his not-very-specific claims on this front, and as far as I can tell, press scrutiny of Kiyosaki to date has been limited to bland interviews or face-value restatements of his book’s themes. I did come across a long and withering critique by a real-estate writer named John T. Reed. He questions, among other things, whether Rich Dad even exists.) Not surprisingly, the sunny cover blurbs make no mention of flipping distressed properties for big bucks, since even the least sophisticated book buyer would tend to be skeptical about yet another run at this familiar get-rich-quick scheme.
Our willingness to believe that we can hire some expert to tell us how to outperform markets is a big problem, with big consequences. It underpins Wall Street’s brokerage operations, for instance, and leads to a lot more people giving out financial advice than should be giving out financial advice.
Thanks to the current panic many Americans have learned that the experts who advise them what to do with their savings are, at best, fools. Merrill Lynch & Co., Morgan Stanley, Citigroup Inc. and all the rest persuaded their most valuable customers to buy auction-rate bonds, telling them the securities were as good as cash.