Investing in Canned Tuna: A Recipe for Disaster?
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Chapter 1: The Dangers of Misguided Investment Advice
In today’s world, some individuals will say almost anything to maintain their relevance. This often involves making alarming statements without any credible evidence to substantiate their claims. The conversation surrounding investment advice is frequently dominated by those who seek attention at any cost.
The most egregious investment tweet of 2022 comes from Robert Kiyosaki, the author of the highly popular personal finance book, Rich Dad Poor Dad, released in 1997. This book has sold millions of copies and has firmly established him as a leading authority in personal finance.
However, Kiyosaki has chosen to misuse his influence to promote bizarre conspiracy theories and mislead his followers—many of whom cling to his every word. When he asserts that we are on the brink of a great depression—a claim he often reiterates—mainstream financial news outlets typically amplify his warnings in their headlines.
If a website's revenue relies on ad clicks, then sensational headlines featuring a well-known figure making an alarming statement are a surefire way to attract traffic and boost profits.
A recent instance of this is Kiyosaki's assertion that the most prudent investment is to stockpile canned tuna, claiming that inflation is about to soar. While it’s true that global food supply chains are under pressure, particularly due to geopolitical tensions, Kiyosaki’s message is aimed at affluent individuals in developed nations—those who can afford to invest in precious metals or cryptocurrencies and stockpile food.
Thus, according to one of the best-selling personal finance authors in history, the premier investment strategy is to hoard food. This notion is ridiculous on multiple fronts. If everyone were to follow this advice, it could ironically lead to the very food shortages he warns about.
Did we not learn anything from the panic buying of toilet paper during the initial stages of COVID-19?
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Section 1.1: Media Sensationalism and Its Impact
What frustrates me more than public figures using their social media platforms to instill fear in their followers is how mainstream financial media covers these outrageous claims.
For instance, Business Insider recently reported on Kiyosaki’s statement with the headline: "‘Rich Dad Poor Dad’ author Robert Kiyosaki touts canned tuna as the best investment today — as gold, silver, and bitcoin aren’t edible." No, this is not satire from The Onion.
The article included quotes that debated the merits of investing in canned tuna. They provided a balanced view by suggesting that Kiyosaki likely advocates for canned tuna due to its long shelf life, affordability, and space efficiency for bulk purchases. The implication was that investors could simply open their tuna cans if food prices spike.
However, in an attempt to maintain balance, the article also mentioned the downsides: canned tuna eventually spoils, can be cumbersome to store in large quantities, and the unique flavor may not be appealing to everyone.
Welcome to 2022, where food hoarding is considered a legitimate investment strategy to avoid upsetting fans of a best-selling author.
Subsection 1.1.1: The Fallacy of Food Hoarding
Let me be clear: you should not stockpile cans of tuna or baked beans. Hoarding food is not a legitimate form of investment. The world is not facing imminent collapse.
Just because someone has authored a personal finance book does not make them an authority on macroeconomic policy. One can appreciate past accomplishments while critically evaluating their current claims based on the evidence and reasoning they provide.
When someone continually makes outrageous assertions without credible backing, they should no longer be regarded as a reliable source for financial guidance.
It’s time to stop elevating the loudest voices and instead engage in personal finance discussions rooted in rationality, empirical evidence, and constructive arguments.
Section 1.2: Join the Conversation on Rational Investing
In the latest edition of the Making of a Millionaire newsletter, we explore "Four Misunderstood Concepts in Personal Finance."
You can read the post and subscribe to the newsletter to engage in a thoughtful dialogue about investing and personal finance.
This article serves as a source of information and entertainment. It is not intended as financial or legal advice. Always consult a financial professional before making significant financial decisions.
Chapter 2: Video Insights on Investment Strategies
Explore the misconceptions around personal finance advice in this thought-provoking video.
A humorous take on extreme frugality and how far some will go to save money.