Renowned investors invariably share one common trait: they are voracious readers. Indeed, as successful investors will attest, investing intelligently in securities requires a sound intellectual framework for making decisions. Warren Buffett, one of the world’s wealthiest individuals with a net worth of $74.5 billion at the time of this writing, famously read between 600 – 1,000 words per day at the start of his investment career. Here, utilizing several credible sources, we will examine the books Buffett recommends to all investors (click on the book images for additional information).
Benjamin Graham’s The Intelligent Investor
Graham’s The Intelligent Investor is a book oft-cited by investors as one of the greatest investment books ever written. As you can see by the cover, Warren Buffett has claimed that The Intelligent Investor is “by far the best book on investing ever written.” This revised edition includes chapter commentary by Jason Zweig, a journalist for the Wall Street Journal known for his weekend Intelligent Investor column.
According to Business Insider and WarrenBuffett.com, in 1991, Bill Gates asked Warren Buffett for his favorite book. In reply, Buffett sent Gates his personal copy of John Brook’s Business Adventures.
Graham & David Dodd’s Security Analysis was first published in 1940. This revised edition includes a forward from Buffett – he has stated that he read Graham & Dodd’s masterpiece at least four times.
In Common Stocks and Uncommon Profits, Philip Fisher emphasizes the importance of evaluating a company’s management.
As noted by WarrenBuffett.com, Buffett praised the book as “the funniest book ever written about investing,” and noted that “it lightly delivers many truly important messages on the subject” in a 2006 shareholder letter.
Despite writing the essays, Buffett nevertheless cites the book as one of his favorites. See Business Insider and WarrenBuffett.com. As noted in prior posts, I highly recommend!
Other notable books referenced by Buffett as being important resources for all investors: