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WARREN BUFFETT`S FAVOURITE BOOKS

How did Warren Buffett came to be one of the best stock investors the world has ever seen?

Certainly his passion for reading had a big influence to it.

Quoting his very own words:

“I insist on a lot of time being spent, almost every day, to just sit and think. That is very uncommon in American business. I read and think. So I do more reading and thinking, and make less impulse decisions than most people in business. I do it because I like this kind of life.”

Warren Buffett

If you want to know more about how Warren Buffett thinks, there’s no better place to start than reading the books he himself recommends, and luckily we`ve got a wide list to share!

“The Intelligent Investor” by Benjamin Graham

Amazon

Warren picked up a copy of the book when he was just 19 years old and he defines that moment as one of the luckiest of his life as the book would give him the right intellectual framework for investing.
As Buffett himself said:
“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information, what’s needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework. This book precisely and clearly prescribes the proper framework. You must provide the emotional discipline.”

“Security Analysis” by Benjamin Graham

Amazon

At number 2, we find another book from Benjamin Graham. And why wouldn`t we? after all, Buffett said that Graham was the second-most influential figure in his life, after only his father.
Buffett Defines the book as the road map for investing that he has been following for 57 years.
The book’s core is that If your analysis is thorough enough then you can figure out the value of any company.

” Where Are the Customers’ Yachts?” by Fred Schwed Jr.

Amazon

At the 2016 Berkshire Hathaway shareholders meeting, Warren claimed that he read this book back in 1940 when he was only 10 years old.
It is interesting to note that certain human behavioural tendencies remain the same even almost a century after the book was originally published. It is also clear that our stock analysis through modern information and technology has evolved 10-fold compared to the information that was being used nearly eight decades ago.


“The Little Book of Common Sense Investing” by John Bogle

Amazon

Quoting Buffett`s own words from his 2014 shareholder letter : “There are a few investment managers, of course, who are very good – though in the short run, it’s difficult to determine whether a great record is due to luck or talent. Most advisors, however, are far better at generating high fees than they are at generating high returns. In truth, their core competence is salesmanship. Rather than listen to their siren songs, investors – large and small – should instead read Jack Bogle’s The Little Book of Common Sense Investing.” 

‘Essays in Persuasion’ by John Maynard Keynes

As Warren stated:
“Reading Keynes will make you smarter about securities and markets, I’m not sure reading most economists would do the same.”

For many, Essays In Persuasion is required reading for various courses and curriculums. And for others who simply enjoy reading timeless pieces of classic literature.

The book includes the famous essay “Economic Possibilities for Our Grandchildren” in which the author predicted today`s generation would only work 15 hours a week.