Por Qué los Ricos Reinvierten (y los Pobres Gastan) - con Alejandro Cardona & Fernando González

Key Concepts

• Cash Flow vs. Capital Gains: Transforming profits into assets that generate ongoing income (cash flow) rather than relying solely on one-time gains.
• The Importance of Process: Focusing on the system and methodology for investment, rather than solely on the investment itself (as learned from Robert Kiyosaki).
• Emotional Control: Maintaining discipline and avoiding impulsive decisions driven by greed or fear in investment and business.
• Abundance Mindset: Operating from a perspective of plentiful opportunities and the ability to recreate wealth.
• Asset Acquisition: Prioritizing the purchase of assets that generate income and build wealth, rather than liabilities.
• Financial Education & Surroundings: The critical role of continuous learning and associating with successful individuals.
• Spiritual & Emotional Wellbeing: Recognizing the importance of inner peace, positive mindset, and emotional resilience for success.

The Power of Process and Consistent Investment: A Conversation with Alejandro Cardona

Introduction & The Value of Mentorship

The conversation begins with Fernando welcoming Alejandro Cardona, fresh off successful events with Robert Kiyosaki in Miami. Alejandro expresses gratitude for Fernando’s mentorship and highlights the value of the investment process he imparts to his students. He emphasizes that, like Kiyosaki taught him, the true asset isn’t the investment itself (like options) but the process used to acquire it. He illustrates this by contrasting his approach – reinvesting profits into asset building – with the common tendency to spend on depreciating assets like expensive cars or yachts.

The Coca-Cola Formula: Reinvesting for Growth

Alejandro describes his investment strategy as mirroring Warren Buffett’s: reinvesting dividends and rental income into further acquisitions. This creates a self-perpetuating cycle of growth, where income generates more income. He applies this principle not only to stocks but also to real estate, converting capital gains into consistent cash flow. He stresses the discipline of reinvesting 70-80% of earnings each month, contrasting this with the common pattern of overspending and accumulating debt. He notes that many people end up financing purchases they can’t afford, trapping themselves in the “rat race.”

From Closures to Acquisitions: The Power of Consistent Action

Alejandro shares that he recently closed four deals, immediately reinvesting the proceeds. He uses a hypothetical scenario – what if Mark Zuckerberg had stopped at $100 million? – to illustrate the potential of continuous growth. He points out that while Zuckerberg’s success seems natural, it requires deliberate action and processing. He emphasizes that these deals represent acquiring “good debt” – debt used to purchase income-generating assets – unlike the “bad debt” incurred by those who purchase depreciating assets. He demonstrates this by showcasing his own lifestyle, enjoying luxuries funded by his assets, not by working for money. As Robert Kiyosaki states, “The rich don’t work for money, they work for cash flow, for assets that put money in their pocket, and with the money from their assets they buy their adult toys.”

Creating Wealth Where It Didn't Exist

Alejandro expands on the concept of wealth creation, stating that millionaires and billionaires don’t simply earn money; they create it. He provides the example of real estate investment: acquiring a distressed property, improving it, and generating a substantial profit. He highlights Fernando’s role in making these concepts accessible, acknowledging that what seems natural to them may be revolutionary to others. He stresses the importance of surrounding oneself with successful individuals, as Robert Kiyosaki advised, to avoid being negatively influenced by those lacking a similar mindset. He emphasizes that the core principle isn’t the business, real estate, or market itself, but who you become in the process.

The Value of Time and Presence

Alejandro emphasizes the importance of prioritizing experiences with loved ones. He shares a personal anecdote about spending quality time with his son on his 20th birthday, engaging in activities like playing basketball and bowling with friends, all without worrying about finances. He contrasts this with the experience of many parents who are disconnected from their children’s lives. He highlights that he consistently makes time for his children, playing basketball, discussing investments, and engaging in activities they enjoy, even during challenging times.

Emotional Intelligence and the Spiritual Dimension

Alejandro discusses the importance of emotional control, drawing on Robert Kiyosaki’s wisdom about a spiritual dimension being more real than the material world. He emphasizes the need to train one’s emotions, contrasting the self-control of successful investors with the impulsive reactions of those who lose control during negotiations. He recounts a personal experience selling Meta (Facebook) stock at a significant profit, resisting the temptation to hold on for further gains, and correctly predicting a market downturn. He explains that this decision stemmed from controlling greed and recognizing a good return. He contrasts this with those who cling to losing investments, hoping for a turnaround. He stresses the importance of operating from a mindset of abundance, but one that is carefully managed.

Avoiding Ego and Recognizing Opportunities

Alejandro illustrates the importance of avoiding ego-driven decisions. He recounts being offered an opportunity to invest in a soccer team, but declining because it didn’t align with his expertise or interests. He explains that investing in such a venture would likely be a liability, whereas his current investments generate income. He highlights the tax advantages of real estate investment, specifically the ability to deduct 100% of expenses even with a small down payment, and the benefit of capturing full appreciation.

Motivation Rooted in Family and Legacy

Alejandro reveals that his primary motivation stems from his love for his family and a desire to build a lasting legacy. He shares how witnessing his father’s emotional distress after losing his business inspired him to seek alternative ways to create wealth that weren’t tied to a single enterprise. He draws parallels to the story of Walt Disney, who faced multiple bankruptcies before achieving success, and Henry Ford, who experienced similar setbacks. He emphasizes the importance of mental training and positive self-talk, contrasting his approach with his father’s habit of consuming negative news. He actively avoids negative news, focusing instead on identifying opportunities and maintaining a high level of energy.

Conclusion: A Mindset of Abundance and Self-Respect

Alejandro concludes by emphasizing the power of a positive mindset, consistent action, and surrounding oneself with the right people. He reiterates that success is already achieved through the right mindset and dedication. He stresses the importance of self-respect and avoiding unnecessary risks, stating that he wouldn’t take a risk now that he wouldn’t have taken when he had less. He emphasizes that the most important asset is the blessing of life itself and encourages listeners to respect and care for themselves. He ends with a call to action: to operate from a mindset of abundance, to build a strong asset column, and to achieve financial freedom.