© Reuters. After Warning Of Crypto Seizure; Here’s Where ‘Rich Dad Poor Dad’ Author Is Investing His Money
Robert Kiyosaki, the author of the hugely successful personal finance book “Rich Dad Poor Dad,” received a lot of flak last week for his predictions about cryptocurrencies, declaring that digital assets like Bitcoin (CRYPTO: BTC) and Ethererum (CRYPTO: ETH) would be seized by the U.S. government, following President Joe Biden’s executive order. Friday, Kiyosaki had a different recommendation for his twitter followers.
What Happened: The best-selling author said he is investing in oil. This does not come as a surprise, as oil has been on a secular uptrend, helped by the geopolitical tension engendered by the Ukraine crisis.
WTI grade crude oil prices rallied to a high of $130.50 on March 7, as the war in Eastern Europe intensified. Russia is a major producer of oil, and sanctions against the country in retaliation to its aggression in Ukraine could pressure oil supplies and in turn perk up prices.
However, Kiyosaki said he is not investing in oil companies such as Exxon Mobil Corp (NYSE: NYSE:XOM). Instead, he said he is investing directly into oil wells. Offering a rationale for his decision, Kiyosaki said it is a high risk – high return opportunity and that tax breaks are available for the investment.
He also noted that with oil’s rally last week, two additional wells came up.
Related Link: As Oil Prices Skyrocket, Cathie Wood Admits She Got ‘Supply Shock Wrong’ With $10 Forecast
How Do One Invest In Oil Wells: Kiyosaki’s suggestion may be referring to the “direct participation program” (DPP), which allows willing investors to pool capital to create a limited partnership. The capital can then be used to drill wells and extract oil.
There is another route for investing in oil wells. In the U.S., mineral rights are sold to people, who in turn can lease the resource to an oil and gas company.
Related Link: Best Oil Stocks Right Now
Photo: Courtesy of Gage Skidmore on Flickr
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After Warning Of Crypto Seizure; Here’s Where ‘Rich Dad Poor Dad’ Author Is Investing His Money
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