Warren Buffett’s favorite Books

investors – large and small – should instead read Jack Bogle’s The Little Book of Common Sense Investing”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 Buffet

1. The Intelligent Investor, by Benjamin Graham

“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.” – WB

2. Security Analysis, by Benjamin Graham and David L. Dodd

“a road map for investing that I have now been following for 57 years.” – WB

3. Common Stocks and Uncommon Profits, by Philip Fisher

“I am an eager reader of whatever Phil has to say, and I recommend him to you.” – WB

4. Stress Test: Reflections on Financial Crises, by Tim Geithner

“I read (former U.S. Treasury Secretary) Tim Geithner’s book which will be out in another week or so, and anybody, politician or financial manager, financial supervisor should read that book. Tim correctly says that you’re going to run into more panics in the future, and there’s not a thing about them and here is what to do. And it’s a very, very good book.” – WB

5. The Essays of Warren Buffett, by Warren Buffett

“What could be more advantageous in an intellectual contest–whether it be chess, bridge, or stock selection–than to have opponents who have been taught that thinking is a waste of energy?” – WB

6. Jack: Straight from the Gut, by Jack Welch

“Last fall, Charlie and I read Jack Welch’s terrific book, Jack, Straight from the Gut (get a copy!) In discussing it, we agreed that Joe has many of Jack’s characteristics: He is smart, energetic, hands-on, and expects much of both himself and his organization.” – WB

7. The Outsiders, by William Thorndike Jr.

“The Outsiders, by William Thorndike, Jr., is an outstanding book about CEOs who excelled at capital allocation. It has an insightful chapter on our director, Tom Murphy, overall the best business manager I’ve ever met.” – WB

“one of the most important business books in America” – Forbes.

8. The Clash of the Cultures, by John Bogle

“I also recommend The Clash of the Cultures by Jack Bogle and Laura Rittenhouse’s Investing Between the Lines.” – WB

9. Business Adventures: Twelve Classic Tales From the World of Wall Street, by John Brooks

Gates says he asked Warren Buffett back in 1991 what his favorite business book was, and Buffett responded by sending his personal copy of “Business Adventures.”

Gates fell in love with the storytelling. He writes:

Brooks’s work is a great reminder that the rules for running a strong business and creating value haven’t changed. For one thing, there’s an essential human factor in every business endeavor. It doesn’t matter if you have a perfect product, production plan and marketing pitch; you’ll still need the right people to lead and implement those plans. – Source

10. Where Are the Customers’ Yachts? by Fred Schwed

“The funniest book ever written about investing,” Warren Buffett proclaimed in his 2006 shareholder letter, “it lightly delivers many truly important messages on the subject.”

11. Essays in Persuasion, by John Maynard Keynes

“Reading Keynes will make you smarter about securities and markets,” – WB

12. The Little Book of Common Sense Investing, by Jack Bogle

“…investors – large and small – should instead read Jack Bogle’s The Little Book of Common Sense Investing” – WB

13. Poor Charlie’s Almanack, edited by Peter Kaufman

“Scholars have for too long debated whether Charlie is the reincarnation of Ben Franklin,” Buffett wrote. “This book should settle the question.”

14. The Most Important Thing Illuminated, by Howard Marks

‘Howard Marks, chairman and co-founder of Oak Tree Capital, intended to wait until he retired to write this book, as noted in a 2011 Barron’s review. But Buffett so admired Marks’s client memos that he offered to write a dust-jacket blurb if Marks would publish the book sooner.

The result is “a rarity, a useful book,” Buffett reportedly said.

Marks aims to help investors achieve success by putting more thought into their decisions. He draws heavily on his own mistakes and what he learned from them.’ – Source

15. Dream Big, by Cristiane Correa

“They’re very smart, they’re very focused. They’re very determined. They’re never satisfied. And as I said earlier, when you make a deal with them, you make a deal with them.” – WB talking about 3G Capital

16. First a Dream, by Jim Clayton and Bill Retherford

“Buffett credits Clayton’s autobiography with inspiring him to invest in Clayton Homes in 2003. In his 2003 shareholder letter, he wrote that the book was a gift to him from students at the University of Tennessee. Buffett told the students how much he enjoyed the book,” – Inc, WB

17. Take on the Street, by Arthur Levitt

“In Buffett’s 2002 shareholder letter, he explains “how accounting standards and audit quality have eroded in recent years.” Specifically, he cites the downfall of Arthur Andersen accounting.” – Inc

“The details of this sordid affair are related in Levitt’s excellent book, Take on the Street,” – WB

18. Nuclear Terrorism by Graham Allison

“must-read for those concerned with the safety of our country.” – WB

19. Personal History by Katherine Graham

“It is a marvelous book… An incredible woman with an incredible live. It contains such a broad range of human experience honestly told, nobody in Hollywood could write up a scenario that she lived through ” – WB at Q&A 2017

Sources:

  • http://www.wiley.com/WileyCDA/Section/id-817935.html
  • https://www.fool.com/investing/general/2013/12/25/buffettbooks.aspx
  • https://www.cnbc.com/2014/05/05/cnbc-transcript-warren-buffett-charlie-munger-and-bill-gates.html
  • http://www.berkshirehathaway.com/2001ar/2001letter.html
  • http://www.berkshirehathaway.com/letters/2012ltr.pdf
  • https://blogs.wsj.com/moneybeat/2015/04/30/11-picks-from-warren-buffetts-bookshelf/
  • http://www.berkshirehathaway.com/letters/2004ltr.pdf
  • https://youtu.be/1CCcheNC1sw?t=1816
Karl Niebuhr

Karl Niebuhr

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Karl Niebuhr

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