Warren Buffet Recommended Reading List
Some call him the best investor of all time, some call him Oracle of Omaha, other call him legend, but one this is for sure – Warren Buffet achieved what no other investor did for such a long period! He achieved average return of 20% versus S&P500 benchmark which was 10%. No wonder you want to read Warren Buffet recommended reading list and you made great decision to follow this genius. In this article you will find books Warren Buffet recommends with my reviews. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.
Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger
The first on the list is Buffet’s long term partner and right hand man – Charlie T. Munger. Charlie was once attorney, but Buffet persuaded him to come with him to investing (main reason was of course to earn some real money), and he did so! Charlie Munger is known for his life sayings, and many call him a walking book because he reads constantly.
In this book, Munger talks about wisdom in life & investments. He goes through a list of common thinking tendencies and how they can impact decision making. This book is great for those who want to get information on what it takes to be successful and to achieve greatness in what it is you want to do in life. The book also has many quotes from successful people like philosophers and entrepreneurs. However, book has 500+ pages and be sure to book your time if you decide to buy it.
The Intelligent Investor by Benjamin Graham
I honestly think this is the best investment book ever written. And I am not the only one. Warren Buffet thinks that also. And it is first on the recommended reading list of Michael Burry.
If you want to be a good investor, this book is a must. Don’t have the money to buy it? Borrow it at your nearest library.
“The intelligent investor is a realist who sells to optimists and buys from pessimists.”
Benjamin Graham, The Intelligent Investor
You will find all sorts of quotes, and some of them will make you think and rethink. The book is not easy to read, people study it for months or even years, but when you finally understand it, a new world will open up to you – the world of investing.
A Few Lessons for Investors and Managers From Warren Buffett
This book has many quotes on what two great business minds (Charlie & Munger) think about companies they have in portfolio and will acquire. As the title says, the books is recommended for investors and managers, but many information in this book you can also find in Buffet’s shareholders letters. It is a good read for anybody who wishes to understand the basics of finance or simply remind themselves some useful staff from Oracle of Omaha.
“It essentially sums up what Charlie and I have been saying over the years in annual reports and at annual meetings.”
Warren Buffet, 2011
Tap Dancing to Work: Warren Buffett on Practically Everything by Carol Loomis
If you have studied Buffet, you will know one thing he is great at. And no I am not talking about picking stocks right now. He is also excellent at reading people. He bought few business after a few hours of conversation with the owner because he could immediately recognize sincerity and character of the owner of that business. Amazing, right?
The book focuses mostly on Warren Buffet’s thinking. It is simple and clear to read as is Buffet strategy to investing. This book is a combination of articles written over many years and put together by Warren’s close friend. You will find some information about Buffet that you can hardly find anywhere else.
“I want to leave my kids enough money so that they feel they can do anything, but not so much that they can do nothing.”
Warren Buffet
The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William N. Thorndike
The book looks at eight CEO’s who produced above average returns for shareholders over the long term. Great book for any thoughtful investor or manager. Also it is simple to read, informative and entertaining, a winning combination.
“It has an insightful chapter on our director, Tom Murphy, overall the best business manager I’ve ever met.“
Warren Buffet, 2012
The Clash of the Cultures: Investment vs. Speculation by John C. Bogle
This book is perfect for anyone who invests in the stock market or 401k. Bogle explains clearly why too much trading eats away the value of our savings through fees and hidden costs. He shows how actively managed mutual funds are overall not as good a deal as index funds. What the book does is explain, in incredibly persuasive detail is why Bogle believes what he does, and why his approach makes sense.
“The Clash of the Cultures: Investment vs. Speculation” is a must read for investors who want to understand the forces that are working against them and what they can do about it to maximize their investment returns. It should come as no surprise to those who know Jack and his philosophy that the final words of his final book are: ‘Stay the course!’
Forbes
Investing Between the Lines: How to Make Smarter Decisions by Decoding CEO Communications by L.J. Rittenhouse
So many books have been written on how to analyze a company, but so few have been written on how to analyze the person in control of a company. The book will be of great help to investors in equities as well as to analysts, business executives and investors. This will provide a different perspective to readers how to analyze management using CEO communications.
Warren Buffet and Shareholder’s Letters
Before we start with the books Michael Burry recommends, I want to emphasize how he often points out that in his early days he studied Warren Buffett and Warren’s letters to shareholders.
The shareholder letters are Buffett’s view on Berkshire’s annual report with a lot of humor and musings on investing thrown in. By reading Warren’s letter you will learn how to think and act like a master.
Each letter has more than 10.000 words or about 20 pages. On the website of Berkshire Hathaway, you can find letters for the last 43 years. However, if you are interested in a book that compiles the full unedited versions of each of Warren Buffett’s letters to shareholders between 1965 and 2014, you can find it on this link.
Buffettology by Buffett and Clark
Buffettology is a book that Mary Buffett, former daughter-in-law of Warren wrote together with David Clark, who studies Warren Buffet’s investment techniques to create Buffettology, a special investment guide that explains the winning strategies of the master.
The book is easy to read, well organized and logical. Thanks to clarifications from Marry Buffet which breaks sophisticated investment concepts into bite-sized chunks, and then makes those chunks easily digestible.
The New Buffettology
This is the second edition of “Buffetology”, written in 2002. Similar to the first part, the book explains in simple steps how to examine the worth of stocks. As a result, the book will guide you to find a good investment out there.
However, the book alone supports exclusively Buffet investment strategies. And that’s good, but I personally like to look at the strategies of other investors well.
Security Analysis By Benjamin Graham – 1951 Edition
Michael Burry, along with the book The Intelligent Investor, also recommends the book Security Analysis by the same author, Benjamin Graham. Both books go hand in hand for those who want to learn value investing.
Although The Intelligent Investor is a better-known book, for those looking to deepen their knowledge of value investing strategies, Security Analysis is a must-read.
To be honest, this is a fat book with a lot of information to chew on, as with Graham’s other book. It’s not the easiest to understand. But once you understand, you will be at an advantage over other investors.
You may have noticed this is a 1951 version. The reason is that there are differences in newer available versions, and the current version has a lot of non-Graham-like stuff in it.
Summary
Investing in yourself is the best investment you can make. This is something that shares the common opinion of all Superinvestors precisely because they know how valuable knowledge is.
Building your knowledge is the fastest and easiest way to improve your life and wealth.
Warren Buffet is famous on his self learning and simple investing strategies. I guess those strategies to became simple you need to arm yourself with ton of information. Supposedly, in the early days of Buffett’s investment career, Buffet would read 600-1000 pages in a single day. Nowadays, he still dedicates 80% of his day to reading and reads about 500 pages per day.
Although we will hardly reach mr. Buffet, we can at least try to be the best version of ourselves, so choosing any book on this list will make us a better person and investor.
