Blog | Paper Assets

The CASHFLOW Quadrant and Stock Investing

the online game that increases your financial iq - play now

There are many different ways to invest in the stock market. How you invest is often tied to your context and level of education and training. We’ve broken down how stock investing is viewed as it pertains to the people in the four CASHFLOW Quadrants.

ESBI graphic

Employee (E) Quadrant

The primary investment vehicle for those in the E Quadrant is a 401(k), RRSP, or Superannuation plan. These are all essentially the same type of investment vehicle, just different names for different parts of the world.

What Are You Working For?

Get Rich Dad's 6 Rules for Investing in Stocks.

They require no thought, time, or energy. The investor has very little control.

Self-Employed (S) Quadrant

The common strategy is to buy low and sell high for capital gains. Stocks can be done without a team. Online brokers automate everything so it is perfect for the control freak.

Business (B) Quadrant

Initial public offering (IPO) is when shares of stock in a big business are sold to stock investors for the first time. Through this process, a private company transforms into a public company.

Investor (I) Quadrant

Option trading is a strategy done to gain exposure of an opportunity or risk while mitigating risks. Options profit from movements in the market that are bullish, bearish, or neutral. In the case of neutral strategies, they can be further classified into those that are bullish on volatility and those that are bearish on volatility. Options require a high level of education to succeed.

Which quadrant are you in? Which one do you want to operate out of?

Download Rich Dad's 6 Rules for Investing in Stocks

Original publish date: September 17, 2015

Recent Posts

Unlocking Wealth Secrets
Personal Finance

Unlocking Wealth Secrets: Strategies for Financial Mastery

"Actions speak louder than words." Discover why it's important to pay attention to what investors like Warren Buffett do, not what they say.

Read the full post
investing in green energy
Commodities, Personal Finance

Investing in Green Energy: Here’s How to Profit

The world has been slowly transitioning to clean energy sources... but it’s about to hit the accelerator. Discover how to profit from the future... now.

Read the full post
Rich Dad’s Guide: The Difference Between Sales and Marketing
Entrepreneurship

Rich Dad’s Guide: The Difference Between Sales and Marketing

If you want to see your business grow, it’s time to focus on marketing as part of your sales funnel.

Read the full post