What Schools Will Never Teach You About Money By Robert T. Kiyosaki

Level 5: The Capitalist Level 
This is the richest-people-in-the-world level.
The Level-5 investor, a capitalist, is skilled as a business owner from 
the B quadrant investing in the I quadrant.
As stated earlier, the Level-4 investor is the do-it-yourselfer from the S 
quadrant investing in the I quadrant. 
The following are a few examples of the differences between a Level-4 
investor and a Level-5 capitalist investor.
1. The S-quadrant investor generally uses his or her own money
to invest.
The B-quadrant investor generally uses OPM (other people’s
money) to invest.
This is one of the major differences between the Level-4 and
Level-5 investor.
2. The S-quadrant investor is often a solo investor. (S also stands
for smartest.)
The B-quadrant investor invests with a team. B-quadrant 
investors do not have to be the smartest. They just have to have 
the smartest team. 
Most people know that two minds are better than one. Yet,
many S-quadrant investors believe they are the smartest people
in the world.
3. The S-quadrant investor earns less than the B-quadrant investor.
4. The S-quadrant investor often pays higher taxes than the
B-quadrant investor.
5. The S quadrant also stands for selfish. The more selfish they are,
the more money they make.
The B-quadrant investor must be generous. The more generous
they are, the more money they make.

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Five Levels of Investors
Unfair Advantage
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signed up for seminars and courses that improved his business and 
investing skills. He also took personal-development courses. He was not 
interested in grades or credentials. He wanted real-life skills that gave 
him strengths and operational skills in the B and I quadrants.
When I was in high school, my rich dad often flew to Honolulu to 
attend seminars on entrepreneurship and investing. One day, when
I told my poor dad that rich dad was going to a class on sales, my poor 
dad laughed. He could not understand why anyone would want to 
learn how to sell, especially if the class hours were not applied as credit 
to an advanced college degree. My poor dad also looked down upon
my rich dad because my rich dad never finished high school.
Having two dads with differing attitudes on education, I was
aware that there was more than one type of education. Traditional 
schools were for those who wanted to be successful in the E and S 
quadrants, and another type of education was for those who wanted
to be successful in the B and I quadrants.
In 1973, I returned from Vietnam. It was time for me to make up 
my mind about which dad I was going to follow. Was I going to follow 
in my poor dad’s footsteps and go back to school to become an E or 
an S, or take my rich dad’s path and become a B or an I, eventually to 
become a capitalist?
In 1973, my rich dad suggested I take classes on real estate 
investing. He said, “If you want to be a successful capitalist, you must 
know how to raise capital and how to use debt to make money.” 
That year I took a three-day workshop on real estate investing. It
was the start of my education into the world of the capitalist. 
A few months later, after looking at over 100 properties, I purchased 
my first rental property on the island of Maui, using 100 percent debt 
financing and still putting $25 cash flow in my pocket each month. My 
real-life education had begun. I was learning to use other people’s money 
to make money, a skill a true capitalist must know.
In 1974, my contract with the Marine Corps was up, and I took 
a job with the Xerox Corporation in Hawaii, not because I wanted
to climb the corporate ladder, but because Xerox had the best
On top of that, bankers would rather lend $10 million than 
$10,000 since it takes just as much time to lend thousands as it does 
millions. Remember, bankers love debtors because debtors make the 
bank rich.
Once bankers are satisfied with our ability to own and manage large 
apartment houses profitably, banks often line up to offer us money, 
even during a crisis.
So the question is: Who do Level-5 investors get their money from? 
The answer is: They get their money from Level-2 and Level-3 investors 
who save their money in banks and pension plans.