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This is exactly my sentiment, mostly fueled by his current article on Yahoo Finance (
http://finance.yahoo.com/columnist/a...ichricher/7450) and others like it that I've read.
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This is a great example. Much of what he writes here is true. But he doesn't give you any actionable detail. I.e. how much cash flow should you require? What's the difference between a bad and a good deal?
Then he dismisses cap rates (and PE's) which are measures of value that tell you how much cash flow you are getting for your dollar. If you don't use cap rates, how do you measure what you are paying for? Obviously PE needs to be adjusted for many things (depreciation, etc) to be more useful, but he doesn't even touch on this or provide you with any actionable advice.
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Warren Buffett doesn't like to sell because selling shares triggers a tax, and a tax reduces his wealth. Those who know Buffett's formula know that he wants to compound his returns, not share them with the government.
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This is both right and wrong. Buffett doesn't mind paying taxes, in fact he's proud to. But he does want to compound his gains as fast as possible. So every holding presents him with a problem, is the after tax gains I'd reap selling this investment and buying a superior investment higher than the gains I'd get just holding the existing investment?
In the past he said that great investments should just be held "forever" because it was unlikely you could find a better investment offering returns superior enough to overcome paying the taxes. Of course, then Coke ran up to absurd prices, he didn't sell, and he's been apologizing ever since
Of course Kiysoki does't explain any of this in detail, so how useful is his column to a novice investor?
They say if you give typewriters to a million monkeys one of them will reproduce a masterpiece. I think Kyosaki shows that if you allow a monkey to cut and paste ideas from hundreds of other investment books, and find a multi-level marketing organisation that will push the monkey's books, the monkey will create a best seller without understanding any of the ideas himself.