Robert Kiyosaki, the bestselling author of Rich Dad Poor Dad, has once again challenged conventional investing wisdom, this time taking aim at what he calls “de-worsification” rather than diversification.
In a recent post on X, Kiyosaki argued that many investors mistakenly believe they are spreading risk across multiple asset classes when, in reality, they are simply accumulating different forms of the same thing — paper assets.
According to him, investors may own exposure to gold, silver, Bitcoin, oil, real estate, stocks and bonds, but if that exposure comes through ETFs, REITs or similar investment vehicles, they remain concentrated within what he describes as the “paper asset” universe.
“Many people are ‘De-Worse-ified’ not ‘Diversified.’ They think they are diversified, but they have all their assets such as , , , stocks, bonds, real estate and oil in one asset class — the paper asset class,” Kiyosaki said in his post.
The financial educator’s comments come at a time when exchange-traded funds (), index investing and passive investing strategies continue to gain popularity among retail and institutional investors alike. While many market participants view diversification as one of the most effective ways to manage risk, Kiyosaki believes that the nature of ownership matters just as much as the asset itself.
Why Kiyosaki Prefers ‘Real Assets’
Kiyosaki’s central argument revolves around direct ownership. He drew a distinction between owning the underlying asset and owning a financial product that merely tracks or represents that asset.
He pointed to examples such as for real estate, Bitcoin ETFs for cryptocurrency exposure, oil ETFs, gold ETFs, , stock ETFs and bond ETFs. In his view, these are derivatives of real assets rather than the assets themselves.
The author said he prefers investments that he can directly own, control and keep under his custody rather than relying on fund managers or financial intermediaries.
“I prefer to own real assets — assets I own, touch, feel, control and are in my custody, not an ETF’s custody. It costs more and takes more time, but I enjoy being a private capitalist investor,” Kiyosaki said.
He added that direct ownership forces investors to spend more time studying their investments and understanding how they work. While acknowledging that his approach may appear overly cautious, Kiyosaki described it as the result of his own “paranoid” investing style.
The latest remarks are consistent with Kiyosaki’s long-held preference for tangible assets and alternative investments. Over the years, he has frequently advocated owning physical gold and silver, real estate and, more recently, Bitcoin.
Rather than telling investors what they should do, Kiyosaki framed the issue as a personal choice, asking followers whether they prefer traditional diversification through financial products or what he views as genuine ownership of real assets.
About Robert Kiyosaki
Robert Kiyosaki is an American entrepreneur, investor and author best known for his personal finance book Rich Dad Poor Dad, first published in 1997. The book became one of the world’s best-selling finance titles and popularised concepts such as financial education, cash-flow investing, entrepreneurship and asset ownership. Kiyosaki is also known for his bullish views on gold, silver and Bitcoin, and regularly shares his investment opinions with millions of followers across social media platforms.
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