Yes welcome to meet back with me on a weekday night as usual. For this time I want to continue on last week's article about 5 categories of assets according to Robert Kiyosaki.
After last week I discussed about the number 1 asset that is commodity, for this time I will discuss second asset or number 2 that is paper asset or securities. What is a paper asset and why Robert put it in the asset class or category in his opinion. Let's see the text below.
First I always want to remind about the nature of money. Money according to Robert at this time is not money but currency, both money is printed and of course the government who print money legally. Then what to do with paper assets ?. Let's ponder for a moment.
If you think that the government actually needs to print money, because it is clear tuga or program from the government. But why the government does not print as much money ?. Of course the answer is because if it happens then there will be hyperinflation and it could lead to economic instability for a country. Can I take Germany first if you ever see a picture of a man who swept the legal money sheet printed by the government. It happens because actually printing more money does not guarantee a State can be advanced or everything gets rich. But the need for balance. Robert also once said that a problem can not be solved by using the same way. And if the government keeps printing money now why is there still poverty going on ?.
If you look at why the price of a bowl of meatballs that once cost 5000 rupiah, currently rising to 8000 rupiah, it is actually because the government has printed more money every certain period, in accordance with the program. Then what to do with paper assets and stories above ?. Back again you will me down.
Paper Asset
Paper assets can actually be exemplified by stocks, bonds. But I want to focus first on stocks, because Robert sees stocks as either an opportunity for or that you become rich. If you've ever known Warren Buffet a stock investor, then you will surely believe because he became the 2nd richest person currently due to stock. Stocks become one of the main points in this Paper asset. The stock is actually a proof of ownership of an open company (Tbk) to the owner of capital or investor. Shares were once tangible pieces of paper as proof of ownership, but now stocks are already online. Owning shares means you also have the right to ownership of the company either 100 sheets or 1000000 sheets remain valid and have the right to come to the General Meeting of Shareholders of a company you own (shares of the company you buy).
Why does Robert include Stocks as a category of assets according to him ?. One example you can see is Warren Buffet, a man who started his stock investment since the age of 11 and now that he gets older he can eventually become one of the richest men. Why can it be so, keep in mind in the story above that the government print money, then the question where the run of all the money ?. What is certain is that the money flows into the capital market, into big companies like SOEs and other companies. That's why I recounted, and returned that money was printed, and that's why Robert once said, "Do not work for money, work for build assets", which means do not work for money, work on building your assets, and the good news is wrong one asset that I reviewed here is about paper assets that are stocks.
For those of you who are beginners in the stock or capital market, it is certainly quite difficult to understand this, but believe me nothing is difficult as long as you slowly and consistently learn about the stock as well as all other lessons. At first I was also very difficult to learn this, I started to learn about stocks since late 2015 around october. And now I'm still learning about any stock of course I already have some stock company. There is my account for stock trading (online trading) there is also my special account for long term investment.
Studying stocks is quite interesting, just like playing an online game, the beginning of playing online games you will surely trouble with certain items, by way of moves, attacks, and quests or missions to do. But after playing the old game online, surely you will get used to the game like a child who has managed to ride a bicycle ontel after the beginning
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