Warren Buffet’s Top 10 Favorite Investing Books
Did you know that Warren Buffett spends as much as 80% of his day reading?
Warren Buffett, one of the richest people in the world, attributes much of his success to constant reading.
In fact, Warren Buffett reportedly reads every single day. The Week estimates he spends as much of 80% of his day reading, and up to 500 pages a day. It might seem like a lot, but gaining knowledge is never easy.
“My job is essentially just corralling more and more and more facts and information, and occasionally seeing whether that leads to some action,” Buffett said.
What books does Warren Buffett Recommend? We’ve put together a list of Warren Buffett’s favorite business books to read so you can add them to your reading list.
Best Warren Buffett Recommended Books 2017
| Title | Author | Length |
|---|---|---|
| The Intelligent Investor | Benjamin Graham | 640 pages |
| Security Analysis | Benjamin Graham | 700 pages |
| Common Stocks and Uncommon Profits | Philip Fisher | 320 pages |
| Stress Test | Timothy Geithner | 592 pages |
| The Essays of Warren Buffett | Warren Buffett | 328 pages |
| Jack | Jack Welsh | 496 pages |
| The Outsiders | William Thorndike | 272 pages |
| Business Adventures | John Brooks | 464 pages |
| The Clash of the Cultures | John Bogle | 384 pages |
| Essays in Persuasion | John Maynard Keynes | 208 pages |
1. The Intelligent Investor
Benjamin Graham wrote this classic in 1949 and is focused on “value investing” which helps up-and-coming investors develop long term strategies.
Warren Buffett first read this book when he was 19, and he has often said that it was what gave him the framework which led him to become one of the top investors in the world.
“To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information,” Buffett said. “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.”
This book contains 640 pages of timeless knowledge and can be finished in a few days.
2. Security Analysis
Warren Buffett said that Security Analysis gave him “a road map for investing that I have now been following for 57 years.”
The book’s core insight: If your analysis is thorough enough, you can figure out the value of a company. Warren Buffett has said that Graham was the second-most influential figure in his life, after only his father.
This book is 700 pages long, but it is worth the time investment.
3. Common Stock and Uncommon Profits
While investor Philip Fisher — who specialized in investing in innovative companies — didn’t shape Buffett in quite the same way as Graham did, he still holds him in the highest regard.
“I sought out Phil Fisher after reading his Common Stocks and Uncommon Profits…When I met him, I was impressed by the man as by his ideas. A thorough understanding of the business, obtained by using Phil’s techniques…enables one to make intelligent investment commitments.” — Warren Buffett
In “Common Stocks and Uncommon Profits,” Philip Fisher emphasizes that fixating on financial statements isn’t enough — you also need to evaluate a company’s management.
This book is only 320 pages and can be finished in 1 day or two.
4. Stress Test
Warren Buffett says that the former Secretary of the Treasury’s book about the financial crisis is a must-read for any manager.
“Sensational . . . Tim’s book will forever be the definitive work on what causes financial panics and what must be done to stem them when they occur.” — Warren Buffett
Lots of books have been written about how to manage an organization through tough times. Almost none are firsthand accounts of steering a wing of government through economic catastrophe.
This book is 592 pages long and can be finished in a few days.
5. The Essays of Warren Buffett
”The book I autograph most.” –Warren Buffett
If you want to get to know the way Warren Buffett thinks, go straight to the Sage himself.
This book is collection of essays written by Warren Buffett including many of his original Letter to Berkshire Hathaway shareholders.
It’s filled with tons of wisdom on a variety of topics like finance, real state, stocks, politics and even emotional intelligence.
This book is 328 pages long and a quick read.
6. Jack
In his 2001 shareholder letter, Buffett gleefully endorses “Jack: Straight From The Gut,” a business memoir of longtime GE exec Jack Welch, whom Buffett describes as “smart, energetic, hands-on.”
In commenting on the book, Bloomberg Businessweek wrote that “Welch has had such an impact on modern business that a tour of his personal history offers all managers valuable lessons.”
This book contains 496 pages of insight from the legendary Jack Welsh.
7. The Outsiders
In his 2012 shareholder letter Buffett praises “Outsiders” as “an outstanding book about CEOs who excelled at capital allocation.”
Berkshire Hathaway plays a major role in the book. One chapter is on director Tom Murphy, who Buffett says is “overall the best business manager I’ve ever met.”
This book contains 272 pages and is a quick read.
8. Business Adventures
Back in 1991, Bill Gates asked Warren Buffett what his favorite book was.
To reply, Buffett sent the Microsoft founder his personal copy of “Business Adventures,” a collection of New Yorker stories by John Brooks.
This book contains 464 pages and can be finished in a few days.
9. The Clash of the Cultures
John Bogle’s “The Clash of the Cultures” is another recommendation from the 2012 shareholder letter.
In it, Bogle — creator of the index fund and founder of the Vanguard Group, now managing $2 trillion in assets — argues that long-term investing has been crowded out by short-term speculation.
This book is 384 pages long and can be finished in a day or two.
10. Essays in Persuasion
“Essays In Persuasion” written by legendary author John Maynard Keynes is widely considered to be one of the top 100 greatest books of all time.
This collection of writings by the legendary economist has remained a staple of financial literature since it was published nearly a century ago.
In Buffett’s opinion, it’s required reading.
“Reading Keynes will make you smarter about securities and markets,” he told Outstanding Investor Digest in 1989. “I’m not sure reading most economists would do the same.”
This book contains 208 pages and is a quick read.
Warren Buffett’s Recommended Books to Read Buyer’s Guide
When choosing a new book to read, it’s important to figure out your main goals and what problems you are trying to solve. Unlike most people, Warren Buffett is an iconic figure and shares his insight on many different topics, not just business and finance.
Most people seek out Warren Buffett for financial guidance because he is currently one of the richest people in the world. We can break down Warren Buffett’s reading list into 3 categories:
- Stock Market Advice
- General Business Advice
- Emotional Intelligence
These are 3 topics that Warren Buffett has mastered over the years since he is not only a gifted investor and businessman, but understands the inner workings of human nature to avoid pitfalls and dangerous mistakes.
For Those Seeking Stock Market Advice
Warren Buffett made his fortune in the stock market so it makes sense to learn from his uncanny insights. I recommend reading The Intelligent Investor, Security Analysis and Common Stocks and Uncommon Profits to gain valuable advice on how to profit from the stock market.
For Those Seeking General Business Advice
Not only does Warren Buffet make money from the stock market, but he is a master at acquiring and running businesses, too. A stock is only important because the underlying business is doing well. Increasing your business acumen will make it easier to discover undervalued stocks because you understand the different between a strong company and underrated stock.
I recommend reading The Essays of Warren Buffett, Business Adventures, and The Outsiders to learn what it takes to run a successful company and why certain companies stay profitable while others go bankrupt.
For Those Seeking to Increase Their Emotional Intelligence
The stock market is a roaring circus driven by two key human emotions: fear and greed. If you learn to master your emotions, then you gain a massive edge in the markets because your process is driven by research and logic, not emotion. It’s hard to make money in stocks if you lack control over your emotions. These books will help you master and control them.
I recommend reading Stress Test, The Clash of The Cultures and Essays in Persuasion to help hone your emotions and put them to more profitable uses.
Final Thoughts and Closing Statements
Warren Buffett is one of the key billionaires in the world that shares his secrets to success. He often quotes many of the books he reads and has zero problems sharing his tips & strategies with the public. If you are serious about becoming wealthy in the stock market and/or business, then dedicate time to reading these books because they will change your life.
I hope this list benefits you as much as it has for me. If you know about any books I forgot, then please let me know in the comments!
