Warren Buffett Recommended Books: From Beginner to Pro
Discover the best books recommended by Warren Buffett, featuring favorite picks on investing, stock picks, share market, and strategies for beginners.
I have received many requests to recommend some of the best Warren Buffett books on investing for beginners. In response, I'm pleased to offer my expert recommendations in this article, which are based on my in-depth study and testing in this field.
Some notable books recommended by Warren Buffett include here: The Intelligent Investor, Poor Charlie's Almanack, Berkshire Hathaway Letters to Shareholders, One Up On Wall Street, Super Trader, Security Analysis, and Common Stocks and Uncommon Profits.
These aren't just the books on this topic. Below, you'll find 23 favorite books with detailed descriptions of each of these outstanding resources.
We give you a reading list of Warren Buffett's book recommendations on the finance, investment, and share market for beginners with tips you can take with you from the books.
In this article, we'll try to answer the following questions:
- Which books made the most impact on Warren Buffett?
- Which books changed Warren Buffett's way of thinking?
- What's the best biography book on Warren Buffett?
- What books influenced Warren Buffett the most?
- Best Warren Buffett Books?
- What does Warren Buffett read?
- Which books inspired Warren Buffett?
A few fresh perspectives and fresh strategies may be all you need to expand your reading list.
For someone as successful as he is, you would not expect Warren Buffett to have a lot of time to catch up on his reading.
1. The Intelligent Investor by Benjamin Graham
Graham wrote specifically for amateur investors, and Buffett called it "the greatest investment book ever"; "Securities Analysis" (Graham Dodd).
Graham's classic, a must-read book for professional investors, Buffett believes that every investor should read this book more than ten times.
First clarified the difference between "investment" and "speculation" and pointed out how smart investors should determine the expected return.
This book focuses on the investment portfolio strategies of defensive investors and active investors and discusses how investors respond to market fluctuations.
The book also elaborates on issues such as fund investment, the relationship between investors and investment advisers, the general method of securities analysis for ordinary investors, the securities selection of defensive investors and active investors, convertible securities and warrants, etc.
2. Poor Charlie's Almanack by Peter D. Kaufman
"The Poor Charlie" contains the main public speeches of Charlie in the past 20 years. The eleven speeches in "The Poor Charlie" fully demonstrate the ingenuity of this legend.
In addition, the chapter "Mungerism: Charlie's Impromptu Talk" includes his sharp — and humorous — comments at the annual meetings of Berkshire Hathaway and Sike Financial.
Throughout the book are Munger's intelligence, wit, admirable values, and unfathomable rhetorical talent. He has encyclopedic knowledge, so from ancient eloquence to European writers in the 18th and 19th centuries, to contemporary pop culture icons, he can comprehend the famous sayings of these people, and use these to emphasize lifelong learning and maintaining knowledge.
The benefits of desire. This updated edition contains two new works by Charlie Munger in the past two years, criticizing the shortcomings of the American financial system in a fabled way, which is quite consistent with the current reflection and criticism of capitalism.
3. Berkshire Hathaway Letters to Shareholders by Warren Buffett—A Tutorial for Joint Stock Companies
This book contains a letter written by investment god Warren Buffett to the shareholders of Berkshire Hathaway. The topics covered include management, investment, and evaluation. The core spirit is written by Graham and Todd.
Put forward, the book discusses corporate governance, corporate finance, and investment, common stocks, mergers and acquisitions, accounting and taxation, etc. It is a refined, practical, and educational investment manual.
This book collects and sorts out the essence of Buffett’s letters to shareholders for more than 20 years. Buffett believes that this book is a first-class work in sorting out his investment philosophy.
4. One Up On Wall Street by Peter Lynch
The author uses simple and vivid language to explain many techniques of stock investment and provides simple and easy-to-learn investment analysis methods to the majority of small and medium investors.
These methods are a summary of the author’s years of experience and have strong practicality. It is especially beneficial for amateur investors.
The author first told investors such an investment rule: Don't believe the advice of investment experts! The author believes that as long as investors do some serious research on stocks, their performance will not be worse than that of experts.
The author believes that amateur investors have many inherent advantages. If they make use of these advantages, they will do better than experts in investing.
As an American phrase, one up means to rely on a certain advantage. It is the edge repeatedly emphasized in the book. At the same time, it shows the writing style of this book, which is easy to understand.
It can be regarded as one on, which means a person on Wall Street and contains character descriptions.
As the first part of the trilogy, it means that it’s a newcomer. When investors first come to the stock market, they must use what they already know.
The author printed the pictures of the characters on the cover, in the cover of the author's formal dress, his expression was serious and green.
5. Super Trader by Van Tharp
Readers of this book provide a comprehensive guide for successful investors. The trading system introduced in the book combines investment psychology and trading practice, and its investment strategy can enable investors to create good results in both long and short-term markets.
This book can guide you:
- quickly master the trading psychology
- learn to make a trading plan
- develop a trading system that suits you
- use fund management strategies to achieve profitability
- reduce the chance of making mistakes through monitoring.
The author has always believed that 100% trading is a psychological factor. So I spent most of the space, talking about the psychological construction of investors, that is, Work on Yourself.
It is to know yourself and construct investment psychology. There are also many cartoon illustrations to illustrate mental construction.
6. Security Analysis by Benjamin Graham
"Securities Analysis" is known as the investor's bible. Since its publication in 1934, it has been selling well for 80 years. The market has repeatedly proved that "Securities Analysis" is a classic work of value investing.
The sixth edition of Securities Analysis is an upgraded version of the 1940 edition.
The 1940 version of "Securities Analysis" is the most satisfactory version of the author's Graham and Dodd, and the most beloved version of Warren Buffett.
While maintaining the original appearance of the original book, the 6th edition adds a guide for 10 Wall Street financial experts, which not only demonstrates the important position of this book in the eyes of Wall Street investment masters but also adds the breadth of the times to this classic work.
7. Common Stocks and Uncommon Profits by Philip A. Fisher
Buffett praised the book, "After reading "Ordinary Stocks, Extraordinary Profits", I found Phil Fisher. When I saw him, he left me like his thoughts. Deep impression.
A thorough understanding of the company with Fischer’s skills enables one to make smart investments."
In the book, Fischer emphasizes that keeping a close eye on financial reports is not enough, you also need to evaluate the management of a company. Buffett called himself "an avid reader of Phil, no matter what he wants to say."
Buffett called his investment strategy "85% Graham and 15% Fisher." He said: "Using Fisher's skills, you can understand this industry...helps make a smart investment decision."
8. Where Are the Customers' Yachts? by Fred Schwed
This is the best book published on the subject of investment. It wisely explains many insights on the subject of investment;
This book mainly talks about the financial industry or the faces of all beings in the financial circle of Wall Street.
Through this book, you can understand from bankers to brokers, from traders to salesmen, their role in market transactions, and you can also understand their code of conduct, but it is worth noting that this code of conduct is divided into obvious sex and recessive.
9. Winning by Jack Welch
With "Winning", there is no need for other management books.
To share the wisdom of winning, Jack Welch, the management master, summed up his own management experience in "Win", from the overflowing and empty "mission" in the enterprise to the crisis management that every company will face, and then to For many daily issues such as budget management, employee recruitment, job hunting, work-life balance, etc.,
Welch put forward his own unique solutions one by one and shared his way of thinking like a successful manager with readers to help you more calmly Respond to the challenges of the future.
10. Seeking Wisdom by Peter Bevelin
Peter Bevelin begins his fascinating book with Confucius' great wisdom: "A man who has committed a mistake and doesn't correct it is committing another mistake." Seeking Wisdom is the result of Bevelin's learning about attaining wisdom.
His quest for original wisdom was partly from making mistakes himself and observing those of others but also from the philosophy of super-investor and Berkshire Hathaway Vice Chairman Charles Munger. A man whose simplicity and clarity of thought were unequal to anything Bevelin had seen.
In addition to naturalist Charles Darwin and Munger, Bevelin cites an encyclopedic range of thinkers: from first-century BCE Roman poet Publius Terentius to Mark Twain—from Albert Einstein to Richard Feynman—from 16th Century French essayist Michel de Montaigne to Berkshire Hathaway Chairman Warren Buffett.
In the book, he describes ideas and research findings from many different fields.
This book is for those who love the constant search for knowledge. It is in the spirit of Charles Munger, who says, "All I want to know is where I'm going to die so I'll never go there."
Some roads lead to unhappiness. An understanding of how and why we can "die" should help us avoid them. We can't eliminate mistakes, but we can prevent those that can really hurt us.
Using exemplars of clear thinking and attained wisdom, Bevelin focuses on how our thoughts are influenced, why we make misjudgments, and tools to improve our thinking.
Bevelin tackles such eternal questions as Why do we behave like we do? What do we want out of life? What interferes with our goals?
Read and study this wonderful multidisciplinary exploration of wisdom. It may change the way you think and act in business and in life.
11. Learn to Earn by Peter Lynch
Peter Lynch was born in 1944. At the age of 15, he started a small-scale investment to earn tuition. In 1968, he graduated from the Wharton School of the University of Pennsylvania with an MBA degree. In 1969, Lynch joined Fidelity.
"Safe Driving Training Textbook". Peter Lynch uses a way of telling stories from his grandmother to tell you the basic knowledge of investment such as the development of capitalism in the United States, the changes in the stock market, the general situation of investment, and the practice of stock selection.
No wonder Warren Buffett wants to say: If he gave his grandson a birthday present, "Learning To Be Rich" would be the best.
12. Jack: Straight from the Gut by Jack Welch
Welch is the "Tiger Woods" in the management world, and all CEOs want to follow his example. Although they can't keep up with him, if they listen carefully to what he says, they can get closer to him.
In "The Autobiography of Jack Welch", Welch revealed his youth, growth history, management secrets, and how to create a unique management model to help a large and diverse business empire get rid of chronic diseases and become a flexible initiative.
The proactive path. He used his unique Webster’s language to cleverly combine life experience, professional experience, and management experience to create a wise, unique, and thought-provoking management legend.
13. The Wealth of Nations by Adam Smith
The book summarizes the experience of capitalist development in various countries in the early modern period, critiques and absorbs important economic theories at the time, and makes a systematic description of the movement process of the entire national economy. It is known as the first systematic great economic book'.
After the publication of this book, it caused widespread discussion among the general public, and the impact was not only in the United Kingdom but also in the European continent and the Americas.
14. The Great Crash 1929 by John Kenneth Galbraith
Buffett believes that the best way to learn is to learn from mistakes, especially from the mistakes of others. And the biggest bear market in the U.S. stock market, the 1929 crash, is the best lesson.
Of Galbraith's classic examination of the 1929 financial collapse, the Atlantic Monthly said: "Economic writings are seldom notable for their entertainment value, but this book is. Galbraith's prose has grace and wit, and he distills a good deal of sardonic fun from the whopping errors of the nation's oracles and the wondrous antics of the financial community."
Now, with the stock market riding historic highs, the celebrated economist returns with new insights into the legacy of our past and the consequences of blind optimism and power play within the financial community.
15. Stress Test by Timothy F. Geithner
The latter part is too long-winded. The first part explains to readers from the perspective of the government why the government has made the decision not to save the Lehman brothers.
How to decide who to save or not to save? How much funding do I need to allocate? What are the consequences? The 2008 financial crisis was caused by the excessive borrowing of real estate.
The current economic boom has relaxed the policy, demand exceeds supply, debt is higher than assets, and the financial industry binds the chain.
Every company should have enough cash reserve to buffer the storm that may occur in the worst period. Bank lending should do enough background credit investigations.
The public should make sure that the risk is bearable (sufficient income to invest). Pay monthly interest), take responsibility for your own words, and don’t publish information that can be devastating without investigating and thinking.
Investment projects must do a good job of risk management, must ensure a stable cash flow and cash volume, and use data to speak,
"Bill Gates said that after reading this book, at least people know what the managers did during the financial crisis. Very real review and reflection, in the illusion of pig-like teammates and pigs all over. The book is good!
16. The Essays of Warren Buffett by Lawrence A. Cunningham
This book collects and organizes the essence of Buffett’s letters to shareholders for more than 20 years, each of which explains part of his career and investment philosophy.
Buffett has said:
"In a quiz, what else is better for you than your opponent thinks and wastes energy?"
17. The Outsiders by William N. Thorndike
Thorndike's book tells about the successful models of the executives of companies such as THE POST and Purina.
Buffett evaluated this book as "an outstanding book on CEOs who are good at capital allocation."
18. The Clash of the Cultures by John C. Bogle
The Vanguard founder believes that long-term investment is being crowded out by short-term speculation. Buffett recommended this book in a letter to shareholders in 2012.
19. Business Adventures by John Brooks
Shortly after getting acquainted in early 1991, Bill Gates asked Buffett which book on business he liked best, and Buffett gave him his "Business Adventures".
20. Common Sense on Mutual Funds & The Little Book of Common Sense Investing by John C. Bogle
Buffett not only recommended John C. Bogle's book but also recommended fund products under the Vanguard Fund founded by John C. Bogle.
If you know how cautious Buffett is, you will understand how unusual this is. Everyone knows that Buffett has a rule of never recommending any stocks or any funds, except for S&P index funds.
At the 2017 shareholder meeting that just ended, he introduced to everyone Bogle at the meeting and also mentioned that he had asked his wife to buy index funds instead of continuing to hold Berkshire stocks.
21. The General Theory of Employment, Interest, and Money & The Economic Consequences of the Peace by John Keynes
According to statistics, Buffett’s mentor Benjamin Graham has cited the most famous quotes in his letter to shareholders in the past 40 years. But who is the second most quoted quote?
Keynes is not only a great economist but also a master of investment, his investment achievements can be compared with economic research achievements.
Buffett highly praised Keynes’s investment thoughts and especially recommended two of Keynes’s masterpieces:
One is "The General Theory of Employment, Interest, and Money), and the second is "The Economic Consequences of the Peace", which is a collection of letters about his investment thoughts with many expressions. Directly refers to the nature of the investment.
22. The Money Game by Adam Smith
This book was first published in the 1960s. At that time, Buffett recommended to everyone for the first time, “You should go out immediately and quickly buy a copy of Adam Smith’s "Money Game".
This book has an impact on the current financial market. I made a very vivid record. This book is full of deep insight and super funny humor. "
It was the book "Money Game" that made the authors Adam Smith and Graham friends, and because of this, they met At that time, Buffett was still unknown.
Since then, Adam Smith made a special trip to Omaha to interview Buffett and made Buffett appear on the famous financial TV show "Adam Smith's Money World" he hosted. This was the first time Buffett appeared on TV.
In 1972, Adam Smith published an updated version of "Super Money", which used a lot of space to introduce Buffett's excellent investment performance and his value investment strategy.
23. The Ten Commandments for Business Failure by Donald Keogh
This is another major work written by Buffett himself, but its content is capable and concise. The author Donald Keogh is the president of The Coca-Cola Company.
Based on his life experience in Coca-Cola, he has summarized ten traps that companies and individuals are most likely to fall into.
Coincidentally, Donald Keogh is also from Omaha, a fellow with Buffett, and once was a neighbor. There are so many celebrities in Omaha.
Munger was also born in Omaha and grew up in Omaha, and he actually did odd jobs in Grandpa Buffett’s grocery store, although they didn't know him at the time.
Buffett said,
"Donald Keogh’s strongest ability lies in being able to quickly see through the essence of things, being able to speak and do things directly to the subject, and making complex issues simple is his principle of handling."
Although this book has only more than 100 pages, it’s still a good idea The aftertaste is endless and the teeth leave a fragrance.
Conclusion: Warren Buffett Books on Investing for Beginners
In the investment world, Peter Lynch is another influential figure often compared to Warren Buffett. Both share mutual respect’s work.
In Lynch’s books, Buffett is frequently mentioned, and Buffett has praised Lynch’s talents.
For instance, Buffett highly recommends Lynch’s Learning to Get Rich, saying, “If you want to give your grandson a birthday gift, Learning to Get Rich is the best.”
Lynch has authored several other classics, such as Beat Wall Street and Peter Lynch's Successful Investment, which remain influential in the investment world.
As a value investor, Buffett emphasizes the importance of analyzing companies and their management.
He has great admiration for Jack Welch, particularly recommending Welch’s autobiography, stating,
"Jack is the Tiger Woods of management, and all CEOs want to emulate him. While they may not match his success, listening to what he says brings them closer."
Regarding Welch's book Win, Buffett remarked, "With Win, there’s no need for other management books."
Buffett himself once said his job is to read. To promote reading, Berkshire Hathaway’s annual shareholder meetings often feature booths selling discounted books.
In 2007, Buffett recommended Poor Charlie’s Almanack by Franklin, Seeking Wisdom: From Darwin to Munger by Peter Bevelin, and Where Are the Customers' Yachts? by Fred Schwed.
Buffett said:
"This book was first published in 1940. It is the best book ever published on the subject of investment. It wisely explains many insights on the subject of investment. "
Though Buffett hasn’t written a book, he annually shares insights in his letters to shareholders.
These letters have been compiled by Lawrence A. Cunningham in Buffett’s Letters to Shareholders, providing a valuable summary of his investment philosophy and strategies.
