The Stock Market Cash Flow: Four Pillars of Investing for Thriving in Today’s Markets

313 Pages·2014·7.43 MB·English

by  Andy Tanner

If you purchase this book without a cover you should be aware that this book may have been stolen property
and reported as “unsold and destroyed” to the publisher. In such case neither the author nor the publisher
has received any payment for this “stripped book.”

This publication is designed to provide competent and reliable information regarding the subject matter
covered. However, it is sold with the understanding that the author and publisher are not engaged in
rendering legal, financial, or other professional advice. Laws and practices often vary from state to state and
country to country and if legal or other expert assistance is required, the services of a professional should be
sought. The author and publisher specifically disclaim any liability that is incurred from the use or
application of the contents of this book. All investing and trading in the securities markets involves risk.
Any decision to place trades in the financial markets, including trading in stock or options, is a personal
decision that should only be made after thorough research, including a personal risk and financial
assessment, and the engagement of professional assistance to the extent you believe necessary.

Copyright © 2013 by Andy Tanner. All rights reserved. Except as permitted under the U.S. Copyright Act
of 1976, no part of this publication may be reproduced, distributed, or transmitted in any form or by any
means or stored in a database or retrieval system, without the prior written permission of the publisher.

Published by RDA Press

Rich Dad Advisors, B-I Triangle, CASHFLOW Quadrant and other Rich Dad marks are registered
trademarks of CASHFLOW Technologies, Inc.

RDA Press LLC

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Scottsdale, AZ 85260
480-998-5400
Visit our Web sites: RDAPress.com and RichDadAdvisors.com

First Edition: October 2013
ISBN: 978-1-937832-48-3

Cover Design by Chris Collins | American Design Co.

122013

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Acknowledgments

None of us can claim sole discovery of everything we have learned in life. Most
of what I’ve learned as a student and share in this book comes from what I’ve
been given from various mentors, teachers, and business partners. It seems that
people were placed within my circle at important times so that I could receive
vital lessons along the way.

Many people have mentored me personally. Others I have admired from afar.

To those who have helped me personally, I wish to say a word of thanks.

Thanks to Brett Eliason and Noah Davidson for their mentorship in paper

assets over the years.

Thanks to Robert and Kim Kiyosaki and the Rich Dad Advisors for lessons

of context. I feel privileged to serve on the Advisor team.

Thanks to Mike Denison and Alfred Quinn for their contributions to this

book. Mike and Alfred help me to say what I want to say when I can’t find the
words.

Thanks to Mona Gambetta for sharing her talent and expertise in the creation

of this book. Making the jump from teaching to writing was a challenge for me.
Mona made it possible.

Thanks to Cindy Geddes and Jennifer Costanza for proofing and editing.

Read The Book That Started It All

Robert Kiyosaki has challenged and changed the way tens of millions of
people around the world think about money. With perspectives that often
contradict conventional wisdom, Robert has earned a reputation for straight
talk, irreverence and courage. He is regarded worldwide as a passionate
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Challenge the belief that your house is an asset •
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Contents Foreword
by Robert

Kiyosaki

Introduction

Chapter One

Become a Great Investor by Becoming a Great Student

Chapter Two

Paper Assets in Your Wealth Plan

Chapter Three

Introducing the 4 Pillars of Investing

Chapter Four

Pillar 1: Fundamental Analysis

Chapter Five

Pillar 2: Technical Analysis

Chapter Six

Pillar 3: Cash Flow

Chapter Seven

Pillar 4: Risk Management

Chapter Eight

Your Next Steps

Foreword

by Robert Kiyosaki

Many people believe investing is risky. So they turn their money over to an
expert and hope that expert really cares about their money.

That is beyond risky. In today’s financial environment, it’s suicidal.
Between 1987 and 2006, investing was less risky. Whenever the stock or real

estate market got into trouble, Alan Greenspan, the Chairman of the Federal
Reserve, would bail out the speculators. It was not long before the public began
to believe that investing in stocks and real estate was a guaranteed path to riches.

In October of 2007, the stock market hit an all-time high at over 14,000 and

then crashed, bringing down the global economy. Bear Sterns and Lehman
Brothers, pillars of the investment community, disappeared. Merrill Lynch, the
stock brokerage firm that millions had entrusted their money to, went bankrupt.

In 2008, the new Federal Reserve Board Chairman, Ben Bernanke, began

cutting interest rates all the way to zero, hoping to prevent the new Depression.
He then began creating money out of thin air.

Who Do You Trust?

It seems incomprehensible to me that people trust their money, their hopes, and
their dreams with those who have run the financial industry into the ground.
How can they do that? How anyone can trust people who were paid million-
dollar bonuses (rather than being fired) is beyond me.

Believing that these professionals, many of whom earn far more than you or

me, care more about your money than you do, is delusional.

This is why I am thrilled and excited about this book by Andy Tanner. And

his timing couldn’t be better. If you know that it is time for you to take control of
your financial future, this book is for you.

CASHFLOW Games

In 1996, my wife Kim and I launched our financial education board game

CASHFLOW® 101. CASHFLOW101 is also known as “fundamental
investing.” Warren Buffett is probably the most well-known of all fundamental
investors.

We created the game to help people who know it’s time to take care of their

own money.

A few years later, we released CASHFLOW 202, which is known as

“technical investing.” Technical investing is investing based upon the market
trends, the ups and downs of markets. One of the most successful technical
investors is George Soros.

Some investors are exclusively fundamental investors. They look at the

financial statement of a business, often investing for the long term because they
believe in the future of the business. Some investors are exclusively technical
investors. They could care less about the strength or weakness of the business.
All they care about is the mood, emotions, or sentiment of the market. For
example, Apple was the darling of the stock market for years. Then suddenly,
market sentiment changed and—although Apple had great fundamentals, great
products, and over a billion dollars in cash—the price of Apple shares plunged.
Investors who bought stock based upon Apple’s strong fundamentals lost.

Smart investors invest based upon both fundamental and technical input.

This is why Andy’s book is a great book. Andy draws on both fundamental and
technical insights before making his investing decisions. I know because I call
Andy for his guidance before I invest my money.

And not only is Andy a great investor, he is a great teacher…which means I

learn a lot every time I seek Andy’s guidance.

What Is Risky?

Millions continue to blindly turn their money over to “experts” they do not know
to manage it for them. They seem to have the “buy, hold, and pray” investing
strategy. I wish them luck, especially in this volatile and unpredictable world. To
me, turning your money over to total strangers is very, very risky.

Andy states, “Risk is the lack of control.” This book gives investors like you