1. Intelligent Investor – Benjamin Graham
Book from which every text about Buffett’s books begins. This classic publication from 1949 focuses on investing based on fundamental analysis and long-term strategies. Warren Buffett read the book for the first time when he was 19 years old. He often said that this book gave him the basis to become the best investor in the world.
“To invest effectively throughout your life, you do not need a cosmic IQ, unique knowledge and skills. What you need when making decisions is a solid intellectual frame and the ability to maintain emotions. ”
“It’s a way tried by many people, but the evidence for its effectiveness is convincing: the more transactions you make, the more you have shares in hand.”
“Never buy shares just because their price has risen or sell just because their price has dropped.”
2. Ordinary shares, extraordinary profits – Philip Fisher
A very popular book containing information on what to look for in the companies before the investment and how to make money on innovative entrepreneurs. Buffett often mentioned this book, saying that after reading it he repeatedly tried to reach its author, and the methods described in it repeatedly helped him in wise investments.
“Research suggests that the greatest investment rewards are given to those who, thanks to feeling or happiness, had the opportunity to invest in a company that will for years gain sales and profits far above its industry. That is why when we believe that we have found such a company, it’s better to stick to this investment for a long time. Such companies do not necessarily have to be small, seedy. However, regardless of size, what counts is the people from the company management, their determination to achieve further levels of development and the ability to effectively implement the plans. ”
“The element I mention a few times is the need for patience if we count on large profits from investments. It is often easier to say what will happen to the price of shares than how much time will come to the price indicated. ”
3. Business Adventures: John Brooks, Twelve Classic Tales from the World of Wall Street
Business Adventures pixabay
The book describes several spectacular enterprises and key moments in their history. In addition, the book presents a model of conducting business activity in the perspective of the economic history of the world. He describes them in such situations as the market crash in 1962 and the attempt to save the British pound. This is one of Buffett’s favorite books, he even recommended it to his friend Bill Gates.
4. Security Analysis – Benjamin Graham and David Dodd
A book that can help entrepreneurs and investors wisely manage their own money, assess the value of the company, check how others have behaved in similar situations. The book has several different editions, and the introduction to the sixth edition is written by Warren Buffett himself. First published in 1934.
“The market is not a weight that uses a precise and impersonal mechanism to record the importance of every affecting issue. Looking at the market, we should rather say that it is a voting machine in which many people register their choices, decisions being the resultant of their reasoning and emotions. ”
5. The Essays of Warren Buffett – Warren Buffett and Lawrence A. Cunningham
In this book, Warren Buffett not only presents his thoughts on investing, but also provides information on the practice of managing Berkshire Hathaway, many anecdotes and autobiographical information.