Robert Kiyosaki rose to fame in 1997 after Rich Dad Poor Dad was published. His personal finance book went on to sell over 26 million copies and remain on the New York Times best-seller list for almost six years.
The investor and entrepreneur also wrote several other books that didn't achieve the level of success as Rich Dad Poor Dad. They include Rich Dad's Prophecy, in which Kiyosaki and Sharon Lechter explained why "the biggest stock market crash in history is still coming."
Over two decades have elapsed since Kiyosaki and Lechter initially warned about a huge stock market crash. But now Kiyosaki thinks a major market meltdown is imminent.
Image source: Getty Images.
Kiyosaki's gloom-and-doom prophecies
Kiyosaki posted to X, formerly known as Twitter, last week reminding his social media followers about the 2013 reprinting of Rich Dad's Prophecy. He pointed out that the book predicted the most severe stock market crash ever was on the way, adding, "That crash will be in February 2025."
This wasn't the first time in recent months that Kiyosaki warned about a stock market crash. On Nov. 9, he posted on X, "Don't be a loser and panic during this crash." Roughly six weeks later, he tweeted:
Global crash has started. Europe, China, USA going down. Depression ahead?
On Jan. 4, Kiyosaki pointed to the 2013 printing of Rich Dad's Prophecy in a post on X, stating, "Unfortunately, RD's Prophecy is here." Three days later, he again referenced his previous book, tweeting: "Prophecy predicted the biggest stock market crash in history was coming. That CRASH is NOW."
Kiyosaki's spotty track record
Kiyosaki's predictions have sometimes been remarkably prescient. For example, on Aug. 14, 2023, he said that the price of Bitcoin (BTC 0.80%) would rise to $100,000. At the time, the cryptocurrency's price was below $29,300. Bitcoin topped $100,000 for the first time late last year.
Bitcoin Price data by YCharts
However, the investor/writer has also frequently been wrong. The next week after predicting that Bitcoin would reach $100,000, Kiyosaki said that the cryptocurrency would hit $120,000 in 2024. It didn't happen -- and Bitcoin has yet to reach that level.
In January 2023, Kiyosaki posted on X, "Unfortunately we are in [a] global recession." We weren't. On Feb. 10, 2023, he proclaimed that the "crash is here." Nearly three months later, he again tweeted, "[The] crash is now." However, the S&P 500 finished the year up 24%.
Kiyosaki argued in an X post on Feb. 2, 2024, "Stock & Bond markets about to crash." They didn't. The S&P 500 jumped 23% in 2024. The Vanguard Total Bond Market ETF, a proxy for the bond market, finished the year down roughly 2% -- a far cry from a crash.
What should investors do if he's right?
But let's assume that Kiyosaki is correct that the biggest stock market crash in history will happen this month. What should investors do if he's right?
Kiyosaki has promoted buying gold, silver, and Bitcoin for years. He thinks that "Bitcoin will boom, boom, boom." Kiyosaki also mentioned in his X post last week, "[I]n a crash, everything goes on sale."
I don't believe the doom-and-gloom prophecy that the greatest stock market crash ever is imminent. But I do agree with some of Kiyosaki's points. Investors may view Bitcoin as a haven if the market plunges, just as they have with gold and silver during some stock market crashes in the past. U.S. Treasuries are also a favorite place for investors to park their money during tumultuous times. Should the market decline significantly, many good stocks would be available at a steep discount.
With all of this in mind, my view is that investors would be wise to do what Warren Buffett is doing. Put some money in safe havens such as Treasuries. (Buffett isn't a fan of Bitcoin or commodities such as gold, but they're viable options, too.) Be prepared to buy stocks of well-run companies with exceptional long-term prospects if they go on sale.
Most importantly, though, Buffett always focuses on the long term. He knows that the stock market has delivered solid returns over the long run and will likely continue to do so in the future. That's "rich dad" wisdom worth heeding, in my opinion.
