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Literature of Warren Buffett

The Literature of Warren Buffett: a Guide to His Favorite Books

As Warren Buffett, one of the most successful investors of all time has often said,

The best investment you can make is in yourself.

This article examines books that influenced Buffett’s investment philosophy by exploring some he read as a lifelong learner. These books provide valuable insights for experienced or new investors on the art of investing.

As an avid reader studying investing, I’ve read many of these books and been struck by their wisdom. I’ve found these books to be incredibly valuable in my understanding of the markets.

By examining the ideas presented in these books, we’ll see how they’ve helped shape Buffett’s approach to investing.

These books on Fisher’s company research and Bogle’s finance criticisms offer investors a deeper understanding.

Join me as we explore the books that have had the most impact on Warren Buffett’s investment philosophy and gain insight into how he has applied their principles in his own investment decisions.
Feel free for your future with these recommended books by Warren Buffett.

Dive Deeper with These 7 Recommended Books by Warren Buffett

1. The Intelligent Investor – by Benjamin Graham

Think you have a complete understanding of value investing?

Graham’s 1949 book “The Intelligent Investor” challenges assumptions and introduces principles guiding Buffett, considered the foundation of value investing.

I have found this book to be incredibly insightful. In it, Graham lays out principles for identifying undervalued stocks and making sound decisions, key concepts aligning with Buffett’s strategy.

Buffett specifically emphasizes the importance of chapters 8 and 20 of the book, where in chapter 8, Graham talks about “The Investor and Market Fluctuations” and how to approach the market with a long-term perspective. In chapter 20, he goes into more detail on “Margin of Safety” as the central concept of investing. These chapters helped understand ideas guiding Buffett’s strategy, differing from other approaches.

I highly recommend this book to anyone looking to gain a deeper understanding of value investing and the art of identifying undervalued stocks. It has been instrumental in shaping my investment perspective. The timeless principles outlined in this book are still as relevant today as they were when it was first published in 1949.

2. Common Stocks and Uncommon Profits – by Philip Fisher

As a value-driven investor, I often turn to the wisdom of Warren Buffett for book recommendations. Of all the mentioned books, Fisher’s “Common Stocks and Uncommon Profits” is mentioned most, around 7 times, for good reason. First published in 1958, Warren Buffett has praised it for its insights on researching and analyzing companies.

Fisher’s “scuttlebutt” method, which involves talking to as many people as possible who are knowledgeable about a company and its industry, is particularly noteworthy and aligns with my approach to researching companies that I developed after reading this book.

One of the things I love about this book is that it emphasizes the importance of understanding a company’s management and the potential for future growth. This is something that investors often overlook, but Fisher makes a compelling case for why it is so important.

Buffett has stated that this is a “very good book” and highly recommends it. He also emphasizes Fisher’s book ideas are still relevant over 60 years after the original publication. He also said, “I’ve mentioned this before. But one of the best books on investment was written, I think, in 1958. I think I read it around 1960, by Phil Fisher, Called Common Stocks and Uncommon Profits”.

Suppose you’re looking to gain a deeper understanding of the markets and make more informed investment decisions. In that case, I highly recommend you add “Common Stocks and Uncommon Profits” to your reading list. It has been instrumental in shaping my approach toward companies, and I will do the same for you.

3. Business Adventures: Twelve Classic Tales from the World of Wall Street – by John Brooks

I’ve always been drawn to the captivating stories of the stock market and the lessons they hold. Imagine all the drama, scandal, and intrigue of Wall Street, all wrapped up in a single book – that’s what you’ll find in “Business Adventures: Twelve Classic Tales from the World of Wall Street” by John Brooks – the perfect read for anyone who loves gripping storytelling.

It gives a glimpse into famous companies’ workings and historic business events. It provides valuable lessons that can be applied to investing and decision-making today.

Warren Buffet also highlighted this book in his annual letters to Berkshire Hathaway shareholders. It said, “I read “Business Adventures” by John Brooks, a collection of New Yorker articles from many years ago. I always learn something when I read Brooks, and this book didn’t disappoint.”

Brooks’s writing is witty and informative, making for an entertaining read that also imparts knowledge into the world of business and investing. It is a must-read for anyone interested in understanding the triumphs and pitfalls of some of the most iconic companies and events in business history.

4. Where Are the Customer’s Yachts?

Published in 1940, Where Are the Customer’s Yachts? by Fred Schwed Jr. is a funny and insightful look into the world of Wall Street. Schwed’s satirical and humorous writing style provides an entertaining and eye-opening perspective on the stock market while also delivering important lessons on investment and the pitfalls of following the crowd.

Buffett has said, “I think ‘Where Are the Customers’ Yachts?’ is probably the funniest book ever written about investing,” it is a good reminder for investors not to get caught in the hype and to be wary of so-called experts.

The book is a quick read, but its lessons will stay with you for a long time. It is a valuable addition to your library and a great way to gain a new perspective on investing.

5. Essays in Persuasion – by John Maynard Keynes

One of the most recommended Books by Warren Buffett, “Essays in Persuasion,” is a collection of his economic and political writings that offers a vision on a wide range of topics, from the economic climate of the 1920s and 1930s to the role of government in a capitalist society.

Warren Buffett has praised this book for its clear and persuasive arguments. He considers it an invaluable resource for anyone looking to gain a deeper understanding of economic policy and its impact on markets.

One of the things I find most compelling about this book is Keynes’ ability to make complex economic theories accessible to a lay audience.

6. The Essays of Warren Buffett: Lessons for Corporate America

There’s no better way to gain insight into the mind of one of the greatest investors of all time than by reading the words of Warren Buffett himself. So, when I heard about “The Essays of Warren Buffett: Lessons for Corporate America,” I knew I had to read it.

This book, curated by Lawrence Cunningham, compiles Buffett’s letters to shareholders and other writings, providing an in-depth look at the billionaire’s approach to investing, his thoughts on corporate governance, and the lessons he has learned over the years.

Buffett himself has recommended this book as the “most representative” of his views, and it is his own words in a more orderly manner.

It covers a number of years and provides a comprehensive overview of his investment philosophy and strategy. It also provides a glimpse into his thoughts on corporate governance and the lessons he has learned over the years.

7. Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger

There’s no denying the impact that Charles T. Munger has had on the industry. Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger, compiled by Peter Kaufman, this book is a collection of speeches and anecdotes, and it provides a fascinating glance into the mind of one of the most successful investors of all time.

Munger’s wit, wisdom, and rationality about life and business offer valuable lessons for anyone interested in understanding the principles and practices that have made him and Warren Buffett successful.

Warren Buffett has said, “I can’t think of a better way to learn about human nature and life in general than by reading Charlie Munger’s Almanack.” 

It’s not just about investing. It offers a broader perspective on life and thinking.

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Notable Mentions: Additional Books Recommended by Warren Buffett

  1. Security Analysis – by Benjamin Graham and David. L. Dodd
  2. How to Win Friends and Influence People” by Dale Carnegie
  3. Showing Up for Life” by Bill Gates Sr.
  4. First A Dream” by Jim Clayton
  5. The Farmer from Merna” by Karl Schriftgiesser
  6. 40 Chances” by Howard G Buffett
  7. The Most Important Thing Illuminated” by Howard Marks
  8. Stress Test” by Timothy F. Geithner
  9. The Man Behind the Microchip” by Leslie Berlin
  10. Limping on Water” by Philip Beuth
  11. The Warren Buffett CEO” by Robert P. Miles
  12. MiTek” by Jim Healey
  13. The Ten Commandments for Business Failure” by Donald R. Keough

Bringing It All Together: Final Thoughts

In conclusion, the books that Warren Buffett recommends have had the most impact on his investment philosophy and have also been incredibly valuable in my understanding of the markets.

Through examining the ideas presented in these books, I’ve been able to see how they’ve helped shape Buffett’s approach to investing.

From Philip Fisher’s “scuttlebutt” method of researching companies to Benjamin Graham’s principles for identifying undervalued stocks, these books offer a wealth of knowledge for anyone looking to gain a deeper understanding of the markets and improve their investment decisions.

I highly recommend these books to any investor, as they contain intellect that can help you navigate the markets with a long-term perspective and make sound investment decisions.

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