Warren Buffet is one of the most successful investors known as the “Oracle of Omaha.” He is the chairman and CEO of Berkshire Hathaway and is ranked among the world’s wealthiest people. Born in 1930, Buffet developed an interest in business and investing at a very young age.
Buffet’s investment strategies and financial wisdom have earned him a legendary status in finance. But did you know that he is also an avid reader who attributes much of his success to his voracious reading habits?
Buffet spends part of his day reading – from financial statements to several newspapers and books. He once famously said, “Read 500 pages…every day. That’s how knowledge works. It builds up, like compound interest.” In this reading guide, we have prepared a list of 20 books encapsulating some of Buffet’s favorite reads that have shaped his worldview, honed his business acumen, and influenced his investment philosophy.
The Outsiders
“The Outsiders” by William Thorndike Jr. details the success of eight unconventional CEOs who significantly outperformed the S&P 500. Going against common beliefs, these CEOs weren’t industry experts or charismatic communicators but individuals focusing on per-share value and capital allocation.
Companies led by these ‘outsiders,’ including Berkshire Hathaway, General Dynamics, and The Washington Post Company, generated returns that turned a $10,000 investment into over $1.5 million in 25 years. Through their stories, Thorndike offers an alternative model for leadership and investment, emphasizing the importance of cash flow over reported earnings in determining long-term company value.
Dream Big
“Dream Big” by Cristiane Correa chronicles the rise of 3G Capital, led by Jorge Paulo Lemann, Marcel Telles, and Beto Sicupira, who built an empire in Brazilian capitalism. Within five years, they discreetly acquired globally recognized American brands like Budweiser, Burger King, and Heinz. Their management method, based on meritocracy, simplicity, and cost-cutting, is efficient but ruthless, rewarding exceptional performers with partnership opportunities.
The book details their journey from establishing Banco Garantia in the 1970s, inspired by Goldman Sachs and Walmart, to their current success, providing an insightful account of their unique business model and philosophy.
The Intelligent Investor
“The Intelligent Investor” by Benjamin Graham is an influential guide to value investing, focusing on long-term, research-based strategies rather than short-term speculation. Since its first publication, it has become a stock market bible, with its principles standing the test of time.
The revised edition, while maintaining Graham’s original text, includes an updated analysis from financial journalist Jason Zweig. It offers contemporary insights, parallels between Graham’s examples and today’s financial headlines, and practical application of Graham’s principles. This indispensable book provides invaluable guidance for anyone aiming to achieve their financial goals through investing.
The Farmer from Merna
“The Farmer from Merna” by Karl Schriftgiesser is an inspiring biography of George J. Mecherle, an Illinois farmer who revolutionized the auto insurance industry. Determined to provide affordable, honest insurance to his fellow farmers, Mecherle faced numerous challenges in establishing his business.
The book chronicles his journey from conceptualizing his innovative plan to witnessing the remarkable growth of his venture. It’s a testament to Mecherle’s perseverance and the transformative power of a simple idea when fueled by determination and integrity.
How To Win Friends and Influence People
“How to Win Friends and Influence People” by Dale Carnegie is a timeless motivational guide that has been instrumental in countless success stories. The book provides invaluable insights into effective communication, making yourself likable, enhancing productivity, influencing others, leadership skills, and social navigation. Its enduring popularity stems from its practical life lessons, delivered through captivating storytelling, helping readers evolve into the person they aspire to be.
One Thousand Ways To Make $1,000
“One Thousand Ways to Make $1000” by Frances Minaker is a classic finance book that has shaped Warren Buffett’s business mindset. The book provides examples of individuals who started their businesses with minimal capital. It offers inventive money-making ideas and excellent salesmanship techniques and emphasizes the power of compound interest.
While some concepts may seem outdated, the core business principles remain relevant. Covering investing, marketing, customer relations, and charity fundraising, it’s a timeless business guide and a snapshot of entrepreneurship during the Depression era.
Limping on Water
“Limping on Water” by Philip Beuth is a compelling rags-to-riches tale of a boy with cerebral palsy who rose to become a top executive at Capital Cities/ABC-TV. Born into a humble background, Beuth faced numerous adversities, including his father’s loss at a young age.
His journey to success, punctuated with anecdotes about celebrities like Paul McCartney, Frank Sinatra, Barbara Walters, and Warren Buffett, is a testament to his resilience, creativity, and talent. More than a career memoir, the book offers an insider’s view of the golden era of television and valuable lessons on ethical, prosperous career-building.
Stress Test: Reflections On Financial Crises
“Stress Test: Reflections on Financial Crises” is a gripping memoir by Timothy Geithner, recounting his tenure as the Secretary of the Treasury during the 2008 financial meltdown. The book delves into the tough decisions made to salvage the financial system and avert economic catastrophe.
It chronicles pivotal events like the Bear Stearns rescue, Lehman Brothers’ failure, and the AIG bailout. Geithner also discusses political battles within the Obama administration, high unemployment, financial reforms, and the personal toll on his family. Ultimately, it’s a hopeful testament to public service and America’s resilience in systemic stress.
The Man Behind the Microchip
“The Man Behind the Microchip” by Leslie Berlin is a captivating biography of Robert Noyce, co-founder of Fairchild Semiconductor and Intel. Hailed as Silicon Valley’s Thomas Edison and Henry Ford, Noyce was an inventive genius and daring entrepreneur.
Drawing from unseen documents and interviews with leading business figures like Steve Jobs and Warren Buffett, Berlin paints a portrait of Noyce’s life and his role in shaping high-tech entrepreneurship. The book offers an insightful look into the triumphs and challenges of one of the key innovators of our era.
Essays of Persuasion
“Essays of Persuasion” by John Maynard Keynes is a prophetic collection discussing various political economy issues. It includes Keynes’ insights on the Versailles Treaty, predicting that heavy Allied demands would lead to Germany’s economic collapse. The book also features his foundational ideas on inflation and deflation, which later shaped his renowned treatise.
Keynes accurately anticipated economic fluctuations in Europe and the U.S., suggesting preventative measures against global depression. His thoughts on Soviet Russia, the decline of laissez-faire, and economic growth prospects remain relevant today.
The General Theory Of Employment, Interest, and Money
“The General Theory of Employment, Interest, and Money” by John Maynard Keynes is a seminal work in economics. The book challenges classical economic theories, arguing that market economies do not automatically provide full employment. Keynes asserts that aggregate demand is the primary driving force in an economy and that inadequate demand can lead to prolonged periods of high unemployment. He advocates for government intervention in fiscal and monetary policies to manage demand and ensure economic stability.
Shoe Dog
“Shoe Dog” is an inspiring memoir by Phil Knight, the founder of Nike. Starting with a $50 loan from his father, Knight shares his journey from selling Japanese running shoes out of his car trunk in 1963 to building Nike, now a global icon with over $30 billion in annual sales.
In Shoe Dog, Knight emphasizes the vital relationships that formed Nike’s core, including his former track coach Bill Bowerman and his first employees. Together, they harnessed a vision that transformed the sports industry and created a brand culture.
Poor Charlie’s Almanack
“Poor Charlie’s Almanack,” edited by Peter D. Kaufman, is a rich compilation of Charles T. Munger’s life, speeches, and insights about financial decision-making. Munger, the vice-chairman of Berkshire Hathaway, imparts wisdom through eleven talks delivered between 1986 and 2007.
The book sheds light on Munger’s unique mental models that guide his rational approach to learning and decision-making, covering diverse fields like business, finance, history, philosophy, and ethics.
The Moment of Lift
“The Moment Lift” by Melinda Gates is a tribute to the inspiring women who have influenced her life and work. From her mother and former Microsoft colleagues to the remarkable scientists, farmers, educators, and leaders she encounters through her philanthropic endeavors, Gates draws inspiration from their stories.
The book highlights the strength, resilience, and transformative power of women. It has shed light on their critical role in lifting communities globally.
Keeping At It
“Keeping At It” recounts the remarkable career of Paul Volcker, former Federal Reserve Chairman, known for his unwavering integrity. Serving the country from 1979-1987, Volcker tackled the inflation crisis, restoring global confidence in central bankers.
His narrative, filled with wit and erudition, highlights episodes in his career serving six presidents and changes in American life, government, and economy since World War II. The ethical governance model he espoused was inspired by his father, who instilled in him the “three verities”: stable prices, sound finance, and good government.
The Great Crash of 1929
“The Great Crash” by Galbraith meticulously dissects the events leading to the 1929 market collapse. The book highlights the belief that someone can gain wealth without effort.
Galbraith argues that understanding the 1929 crash is crucial to prevent similar future occurrences. The book praised for its entertaining and witty prose, becomes a historical analysis and a cautionary tale for subsequent speculative bubbles in financial markets.
Life Is What You Make It
“Life Is What You Make It” by Peter Buffett tells us how personal values shape our lives. Despite being the son of billionaire Warren Buffett, Peter stresses that his true inheritance was a philosophy of forging his path. He critiques society’s shift from work ethic to wealth ethic, advocating for substance over reward.
The book serves as a guide to recognizing the inherent dignity in every life, persevering through challenges, and creating a fulfilling life. It’s a call to transcend circumstances, seize control of one’s destiny, and live fully.
The Wealth Choice
“The Wealth Choice” by Dennis Kimbro delves into the financial struggles disproportionately affecting the African-American community. Based on a seven-year study of 1,000 affluent African Americans, Kimbro provides insightful advice on overcoming economic adversity. He shares inspiring stories of successful individuals like Bob Johnson, Spike Lee, and T.D. Jakes, highlighting their wealth-generating mindsets, sacrifices, and discipline.
The book encourages us to develop a wealth-focused mindset, commit to lifelong learning, align goals with passion, make strategic sacrifices, and seize opportunities.
Seeking Wisdom
“Seeking Wisdom,” by Peter Bevelin, is a compelling exploration of our thought processes, misjudgments, and the tools we can use to improve our thinking. In this book, Bevelin delves into diverse fields to understand human behavior, life goals, and potential obstacles.
The book resonates with those in pursuit of knowledge and a better understanding of their actions. Reading it might change your approach to decision-making in business and life.
Tools and Weapons
In “Tools and Weapons,” Microsoft president Brad Smith and Carol Ann Browne present a compelling narrative from within one of the world’s leading tech companies. They argue that tech companies are responsible for issues arising from their innovations.
The book explores complex topics such as privacy, cyber war, and democracy challenges, providing insights into Microsoft’s unique approach. Updated to reflect the increased relevance of Big Tech in the wake of 2020 events, the book adds new chapters on cybersecurity, nation-states, and the pandemic, making it a crucial resource for understanding the tech industry’s impact.
Final Thoughts
In conclusion, this complete guide to the 20 books recommended by Warren Buffet offers readers a unique insight into the mindset of one of the world’s most successful investors. These books, touching on topics from business and finance to human psychology, have shaped Buffet’s perspective on life.
FAQs
Which books Warren Buffett recommends?
Some books recommended by Warren Buffett are:
The Intelligent Investor by Benjamin Graham Common Stocks and Uncommon Profits by Philip Fisher Security Analysis by Benjamin Graham and David Dodd Business Adventures: Twelve Classic Tales from the World of Wall Street by John Brooks The Outsiders by William N. Thorndike Poor Charlie’s Almanack by Peter D. Kaufman
What does Warren Buffett read every day?
Buffett’s pursuit of knowledge extends beyond books alone. He immerses himself in the insights of six newspapers daily – including The Wall Street Journal, Financial Times, The New York Times, USA Today, Omaha World-Herald, and American Banker.
How many hours did Warren Buffett read a day?
Buffett spends about five to six hours per day reading.
What is Warren Buffett 70 30 rule?
Warren Buffett’s 70-30 rule is a guideline for asset allocation in investment. According to this rule, an investor should put 70% of their investment portfolio in stocks and 30% in fixed-income assets like bonds or cash reserves.
Why should I read the books recommended by Warren Buffett?
Warren Buffett is one of the most successful investors in the world. His recommendations offer valuable insights into his thought process and the strategies that helped shape his successful career.
As a writer, I've always found solace in the pages of a good book. From chasing sunsets and sunrises to diving into fascinating narratives, reading has proven to be an effective stress reliever and a constant source of inspiration for me. With an insatiable love for exploring unique stories and perspectives, I'm passionate about creating book content that connects with readers, stimulates the mind, and challenges the status quo.
