5 Traditional Books Warren Buffett Personally Recommends You Ought to Learn
Warren Buffett did not become a billionaire by accident. He made wise investment decisions by playing the long game and gaining a vast amount of knowledge.
Buffett reportedly spends up to six hours a day reading books. For most busy people, this may seem daunting, but if you’re up to the task, the oracle of Omaha advises “reading 500 pages every day”. He says this is how knowledge works – it builds up like compound interest.
With that in mind, here are five books Buffett personally recommended throughout his infamous career.
1. The intelligent investor
Only Buffett’s words do The Intelligent Investor justice. In the foreword to the fourth edition of the book, Buffett writes, “I read the first edition of this book in early 1950 when I was nineteen. At the time, I thought it was by far the best book on investing ever written. I always think so Still is. “He points out that a solid investment requires no more than the right intellectual framework to support decision-making. He concludes that The Intelligent Investor “provides the right framework precisely and clearly”.
2. A thousand ways to make $ 1,000
Buffett credits a thousand ways to make $ 1,000 (a rather obscure gem he found in the school library when he was 7) to inspire him to start his career. If you can overcome the dated language (the book was written in 1936) there are valuable lessons embedded that will stand the test of time.
3. The most important thing highlighted: Unusual sense for the thoughtful investor
Buffett is not a stranger, but he believes there should be a methodology behind it. To further develop this methodology, Buffett recommends Howard Marks’ book The Most Important Thing. Marks, co-founder and chairman of Oaktree Capital Management, the world’s largest investor in distressed securities, is known for his insightful assessments of market opportunities and risks.
4. Warren Buffett’s Ground Rules: Words of Wisdom from the partnership letters of the world’s largest investor
Author and financial advisor Jeremy C. Miller does an excellent job researching and extracting the best “ground rules” of Buffett from letters Buffett wrote to his partners between 1956 and 1970. “If you are intrigued by investment theory and practice, you will love this book.”
5. Poor Charlie’s Almanack: The Humor and Wisdom of Charles T. Munger
Charlie Munger, Buffett’s partner and vice chairman of Berkshire Hathaway, has no shortage of his own wisdom captured in the Poor Charlie’s Almanack through Munger’s speeches, stories, lessons, and writings. This monumental work, edited by Peter Kaufman, is an encyclopedia of information about what it takes to be successful and to achieve greatness. Buffett has been known to recommend this book at almost every annual general meeting.
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