Knowledge is the basis to be successful in life and reading books is one of the factors that helps in increasing knowledge. Books are an ultimate source of knowledge and if you’re looking for recommendations for reading books why not ask Warren Buffett.
It has always been a dilemma to choose our next book to read but a little research helped me find the list I should definitely read also suggested by Warren Buffett. He reads almost 500 pages a day and never wastes time. In his spare time he reads and reads and reads whether it is a book, newspaper or magazine. Extracting knowledge from every piece of writing is his ultimate motive. He believes in compounding his knowledge time-to-time.
Warren Buffett reads books 6 hours a day, so it would be wise to say that he would have best recommendations in his store to suggest to everyone from beginner to advanced level books. He once said in an interview, “Look, my job is essentially just corralling more and more and more facts and information, and occasionally seeing whether that leads to some action.”
Here, we will discuss the list of 13 recommended books by Warren Buffett and why they are best in business.
Warren Buffett Book Recommendations
Getting better everyday is the only way one can be superior than others. Now let’s dive into the list of books suggested by one of the active and a successful reader.
1. The Intelligent Investor by Benjamin Graham
Published in 1949, this book is one of the best books on Value investing as suggested by Warren Buffett. Many investors as well as successful people have read this book and highly rated it since Benjamin described the basics of Value investing very precisely, logically and easy to understand.
The author has explained various strategies to decrease the errors and develop long term investment strategies.
Warren read this book at the age of 19 which framed his investment career. He also mentions that time as the luckiest when he read this book. Buffett has constantly praised the book on several occasions.
People who are looking to frame their portfolio as successful investor must read this book to have an insight of the market and build strategies.
“Those who do not remember the past are condemned to repeat it.”
Benjamin Graham
2. Security Analysis by Benjamin Graham and David L. Dodd
If “The Intelligent investor” is the first part of investment, “Security Analysis” is the advanced one. Both these books are written by the teachers of Warren Buffett during his college time at Columbia University.
He so highly praises Graham that he is his second idol after his dad. Warren Buffett once said that he is following the roadmap of investment from these books and have never thought of looking for another.
This book has provided the investors with timeless value investing philosophies and techniques. Published in 1930s, this book has withstood all the market conditions across different diversities and countries and its principles are still applicable in stock investments.
“Successful investing is managing risk, not avoiding it.”
Benjamin Graham
3. MiTek: A Global Success Story by Jim Healey
MiTek is another one of the popular recommendations by Warren Buffett in which the story of the engineered products supplier i.e., MiTek industries is explained as to how a bankrupt company resurfaced and has been dominating the market for quite sometime now.
It is one of the subsidiaries of Berkshire Hathaway and is also one of the successful ones. Warren Buffett has quite something to say about this book, “You’ll learn how my interest in the company was originally piqued by my receiving in the mail a hunk of ugly metal whose purpose I couldn’t fathom. Since we bought MiTek in 2001, it has made 33 ‘tuck-in’ acquisitions, almost all successful.”
Note: This book is difficult to find as it’s not available online.
“Like small seeds, small deeds can make a big difference.”
Jim Healey
4. A Few lessons for Investors and Managers from Warren Buffett by Peter Bevelin
This is a quick read book which is basically a collection of essays and quotes of Warren Buffett spoke at various different public appearances and writings.
In this book, you will learn directly from the master of investment, in which he spoke on crucial topics on businesses, reducing risk and many more.
Warren Buffett was quite surprised of this book and says that this book comprises of everything what he and Charlie were speaking of for many years.
“Sorrow is often wisdom’s companion but it is better to learn from others sorrow to prevent our own.”
Peter Bevelin
5. Where are the Customers Yachts? by Fred Schwed Jr.
Another one of the highly praised and recommended books by Warren. In 2006, he termed it as one of the funniest book written on investing where the author very lightly delivers the important messages on Value investing.
By using this book, the author has tried to uncover the hypocritical and ever-changing nature of Wall Street through a visitor in New York who used to admire the yachts owned by Bankers and Brokers.
It is a book that offers the true look in the world of investing where the brokers and bankers become rich while the customers becomes bankrupt. Fred Schwed opens the eyes of the investors with the help of this book.
Apart from Warren Buffett many other successful people have admired this book. Michael Lewis, the best selling author of Liar’s poker said, “Once I picked this book, I didn’t put it down until I finished.”
“The subject of choosing profitable financial investments does not lead itself to competence. There is almost no visible supply. If there were, it would have been discovered long ago.”
Fred Schwed Jr.
6. Common Stocks and Uncommon Profits by Philip A. Fisher
Philip is one of the influential investors of all time. He believed in investing in new and innovative companies. Though he didn’t share the same opinions as Warren Buffett but Buffett has read his books and recommends them for the new investors.
Warren Buffett on Phil Fisher after reading his Common Stocks and Uncommon Profits, “A thorough understanding of the business, obtained by using Phil’s techniques…enables one to make intelligent investment commitments.”
The techniques taught by Phil in 1958 by this book is not only studied and applied in investing but also considered as the teaching of Christ himself.
In this book, Fisher insists that fixating yourself on financial statements when it comes to making your stock picks is not enough. There is also a need to evaluate the management of a company.
“Never promote someone who hasn’t made some bad mistakes, because if you do, you are promoting someone who has never done anything.”
Philip A. Fisher
7. Stress Test by Tim Geithner
Written by Former US Secretary of Treasury, this book was written to provide an insight on how Geithner and others in Obama administration took some unprecedented steps to save the country’s economy from collapsing during the global crisis in 2009.
Warren Buffett has categorized it as a must read for managers, accountants especially during financial crisis.
There are many books that suggest people on how to manage the organization when the going gets tough. Howeve this book provides the insight on how to manage one section of an organization through such a time without panicking.
In this book, Geithner has shared behind the scenes with everyone at what it’s like to be the guy in charge when nothing seems to be working in our favour.
Buffett described this book as, “Sensational… Tim’s book will forever be the definitive work on what causes financial panics and what must be done to stem them when they occur.”
“You can’t judge a decision by how it turns out, only by whether it made sense given the information available at the time.”
Tim Geithner
8. The Little Book of Common Sense Investing by John C. Bogle
It is arguably one of the best books for beginners who wants to understand investment in stock market. Warren Buffett has added this books in his recommendation list for the incredible advice on index funds by John Bogle.
Warren Buffett has asked the investors to read this book instead of heeding advice from others since this book is based on the experience of founder of Vanguard John Bogle where he teaches readers the index investing to amass wealth and build our net worth.
In this book, the author tries to explain why most of the invests fail and why the lost cost index funds easy, simple and best way to build wealth over long term. The charts and stats used by the author to explain the index method of investing makes it an interesting read.
“The greatest enemy of a good plan is the dream of a perfect plan. Stick to the good plan. Traditional.”
John C. Bogle
9. Limping on Water by Phil Beuth and K.C. Schulberg
Written by Phil Beuth, the author narrates the story of his career at the Capital Cities which is one of the leading media companies in the US.
Warren Buffett has added this book to his recommendation list for the readers as he once wrote about it in 2015, “Much of what you become in life depends on whom you choose to admire and copy.”
Warren has constantly praised this book. This book tells you about its leaders Tom Murphy and Dan Burke what they accomplished and how they did it.
Even the famous American Television Presenter Regis Philbin couldn’t stop praising about it. He said that, “The story of how this man, Phil Beuth, was the first to be hired by Tom Murphy and Dan Burke for this Capital Cities company. Together they made the best shows ever on TV. Great man – great shows; and I miss them all.“
“Always try to make others look good, because when they profit, so do you. And always leave something on the table.”
Philip Beuth
10. Shoe Dog by Phil Knight
Written by the creator of Nike, “Shoe Dog” is one of the best books Warren Buffett read in 2015. Apart from a being a successful businessman, Philip Knight is also a gifted storyteller.
In this short memoir, he explained the insights of his company, how this startup evolved and grew into one of the most iconic and game changing brand of the world.
He explained his early triumphs in the industry and how several setbacks and risks kept him away from his dream for his company for a long period.
Philip Kinght is an amazing and fantastic writer and his story in this memoir has truly changed a lot of lives.
“Don’t tell people how to do things, tell them what to do and let them surprise you with their results.”
Phil Knight
11. The Outsiders by William Thorndike Jr.
Another one of the best recommendations by Warren Buffett which I also believe that everyone should read. The book consists of the story of 8 CEOs who excelled in their field and achieved success by taking a different approach in corporate sector.
This book teaches you the methods and habits that you need for consistency in your work which also helped these great leaders in their life to become one of the greatest in the world.
Extracting years of experience from these exceptional CEO’s, the author narrates the essential lessons, theories, models for business, ideas for anyone interested in building a company or investing to reap remarkable rewards.
Berkshire Hathaway, the company of Warren Buffett also has a role to play in this book. The CEO of Berkshire Hathway, Tom Murphy is also included in this book whom Buffett recognizes as one of the best CEO in the world.
“They grew up on the outside of society. They weren’t looking for a fight. They were looking to belong.”
S.E. Hinton
12. Tap Dancing to Work: Warren Buffett on Practically Everything by Carol J. Loomis
One of many books where you will hear the wisdom words from Warren Buffett himself. Carol has narrated the insights of Warren Buffett in this book as to how he builds his strategies for investment & business, his thinking towards public policy, management, family relationships, etc.
Carol and Loomis had been close friends for quite a long time and in this book Loomis has collected several articles and stories published by Fortune and authored by Buffett himself. Apart from just collecting these articles and stories, Loomis also provided her own point of view.
It includes wide array of subjects and the views of Warren Buffett regarding them including his unconventional thoughts on inheritance and philanthropy.
“Great investment opportunities come around when excellent companies are surrounded by unusual circumstances that cause the stock to be misappraised.”
Carol J. Loomis
13. The Clash of Cultures by John C. Bogle
Another book recommendation by Warren Buffett in 2012 authored by the Founder of Vanguard.
John Bogle continuously argues over long term investment and short term investment which is very aggressive nowadays as almost all investors believe in short term investment. He is one of the active investors and has seen the market change and devalue the common sense investing.
It is a simple and recommended read for every investor where the author has urged every investor to be mindful of proper sensible investment.
Apart from that, John has provided everyone with 10 simple, complete and actionable steps which he believes may not be the best, however are better than many worst steps.
“Investors need to understand not only the magic of compounding long-term returns, but the tyranny of compounding costs; costs that ultimately overwhelm that magic.”
John C. Bogle
If you want to read some great entrepreneur’s books here are Top 15 must-read books for entrepreneurs.
Conclusion
Warren Buffett is an intelligent and a successful billionaire investor who is right frame of mind to recommend some of the best books since he too reads lot of them.
These books recommended by him are without doubt some of the best in the world of investing, and if you are an investor these books are truly for you.
They will transfer load of information within you to provide a beautiful idea of market and build some of your investment strategies to neglect the mistakes many failed investors applied.
Being a reader of some of these books, I would certainly ask you to start reading them and share your views with us in the comments section.
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