Review: Corporate Credit and Accredited Investor
This podcast episode had some gems worth noting. Link to the episode here: "Why You Should Invest in Real Assets - Rich Dad Radio Show" https://podcasts.apple.com/us/podcast/rich-dad-radio-show-in-your-face-advice-on-investing/id833641766?i=1000581636998 Here below in two 'parts', are two notable gems what they are saying on the podcast, along with my notes on each of the two: PART I). PART I what they are saying: At sometime around or after the 18 minute mark, the host the persona of Robert Kiyosaki is saying that one of the biggest problems these days is corporate credit. He is saying for example a large publicly traded company wants to do a stock buyback. Then what they can do is they can borrow money and then they can do a stock buyback. And the end result is this company now has debt on its balance sheet. They are saying on the show, if a company does a stock buyback using debt, then in other words that is creating a bubble. Good to know. And on the episode, Kiyosaki says that this year in 2022, it's actually a real trend, it’s not just one company or a couple companies that are actually currently doing this, rather he says this is very widespread these days with a lot of companies borrowing money to do stock buybacks. In other words, he is warning of a possibly dangerous trend. PART I Lemon Mama's Notes: Wow. Once again from this podcast, I’m learning a new thing, a new paradign, just in plain terms. Plain and simple terms. I want to somehow prove whether this is true or not, or to what degree this might be true or not. And so logically I am wondering, if I could read a company's 10-K report myself, then couldn't I tell for myself? And coincidentially, I just read my first 10-K report of a company. One for a large public company for 2021. I considered what I read in this 10-K in the light of what Kiyosaki is saying here. Based on what I see in reading my first 10-K report, I can't say this company isn't doing similar to what Kiyosaki is saying. However I also can't say that I understood it well enough to say they are doing similar to this either. What I did see mention of, in the case of this randomly chosen company, was a 1.5 billion dollar Repurchse Program in 2021. And so I'm not sure, but to me it actually sounded similar to what Kiyosaki was saying. But then again it could be coincidence, it could be legit. I guess I need to learn more about this to be able to identify it!! I'm still ignorant of how to identify this. But thanks to Kiyosaki to raising this to me as a possible concern, so that I can proceed to investigate it further myself and decide for myself. Part II.) PART II What they are saying: The next gem, the next point I say is worth noting on this same podcast episode, is near the end of the episode, it’s in the last three minutes or so, they are talking about, and defining, what is an 'Accredited Investor'. I'd have to go back and listen again, but if I recall, paraphrasing, they saying similar to this: ' …an accredited investor is a single investor who made $200,000 per year over three recent years ... ... OR it’s an individual that has $1 million net worth…' PART II Lemon Mama's Notes: First of all, they are teaching me that an 'accredited investor' is A Thing. This they did in past in previous episodes. Then beyond that they are teaching me what it is by defining it. This is the first time they did that in any episode that I heard. I really appreciate both of these teachings, so thanks again to the podcast for these teachings! In Conclusion, this podcast episode had some gems worth noting, for example musings on corporate credit and musings on what is an 'accredited investor'. 2023-02-09 1808 By Lemon Mama on lemonmama.com ~~~ Copyright © individual authors. Affilate statement: The authors may have interest, and or may be earning commissions, with companies or products mentioned on this blog. So why is Lemon Mama blogging this?... Because “Inbound Marketing for ...”