20 Must Read Warren Buffett Recommended Books: Complete List
Warren Buffet was born in Omaha Nebraska USA on August 30th 1930. He went to school at University of Pennsylvania before pursuing work in New York City after graduating from college where he rose to become one of the most successful investors ever known for running Berkshire Hathaway which is now worth over $358 billion making it second only behind Walmart among United States based public corporations.
Warren Buffett is one of the world's most successful investors. He has recommended many books through out his lifetime, and now we are listing 20 of them. These have been hand-picked by Warren himself in a recent interview with Fortune Magazine.
This list includes classics like "The Intelligent Investor". There are also some lesser known gems on this list that you may not be aware of, such as "Poor Charlie's Almanack." The best part about these recommendations is that they span genres from business to fiction to biographies and more.
Warren Buffett had said in recent Interview with Fortune Magazine about these books: "I think people should start reading an hour or two every day more than they do now, Reading is pretty important in my life because I'm always looking for ideas.''
This blog is a complete list of 20 Warren Buffett recommended books that has made throughout the years, from novels to non-fiction.
This list of books covers a broad range of topics including business to finance and even fiction. Each recommendation has been selected by Mr. Buffett himself so you know that each one will be worthwhile reading material.
- Check out the all 20 Warren Buffett Recommended Books
- 1. "The Intelligent Investor " by Benjamin Graham
- 2. "Poor Charlie's Almanack "by Charles T. Munger
- 3. Common Stocks and Uncommon Profits by Philip Fisher
- 4. Security Analysis by Benjamin Graham and David Dodd
- 5. A Few Lessons for Investors and Managers from Warren Buffett edited by Peter Bevelin
- 6. Tap Dancing to Work: Warren Buffett on Practically Everything edited by Carol J. Loomis
- 7. MiTek: A Global Success Story by Jim Healey
- 8. Investing Between the Lines: How to Make Smarter Decisions by Decoding CEO Communications by L. J. Rittenhouse
- 9. Where Are The Customers’ Yachts? Or a Good Hard Look at Wall Street by Fred Schwed
- 10. The Outsiders by William Thorndike Jr.
- 11. Dream Big by Cristiane Correa
- 12. Jack: Straight from the Gut by Jack Welch
- 13. Essays in Persuasion by John Maynard Keynes
- 14. Stress Test: Reflections on Financial Crises by Tim Geithner
- 15. The Little Book of Common Sense Investing by John C. Bogle
- 16. Business Adventures: Twelve Classic Tales from the World of Wall Street by John Brooks
- 17. The Most Important Thing Illuminated by Howard Marks
- 18. Take on the Street by Arthur Levitt
- 19. Nuclear Terrorism: The Ultimate Preventable Catastrophe by Graham Allison
- 20. The Clash of Cultures: Investment vs. Speculation by John C. Bogle
- Final Words
Check out the all 20 Warren Buffett Recommended Books
1. "The Intelligent Investor " by Benjamin Graham
This book is Warren Buffett's mentor and long-time friend. Warren says that this book is a must read for all investors, as it provides the foundation to investing with stocks over time. The first edition came out in 1949, and there have been many updates since then.
"I think The Intelligent Investor is the best book on investing ever written, If you're going to be an intelligent investor -and who does not want that?" said Warren Buffet about this one.
Warren recommends reading any of the editions available today because they are relevant even though they've come out years apart from each other: “I'm very confident in saying buy anything on Amazon or anywhere else where you can get it” he told Fortune Magazine interviewer when asked which version of the book to read.
2. "Poor Charlie's Almanack "by Charles T. Munger
Charlie Munger, Warren's business partner for over 60 years at Berkshire Hathaway and Vice-Chairman of its Board of Directors, wrote this collection of his thoughts about investment principles in 1993.
Warren has said that "the insights in Poor Charlie’s Almanack are worth a quick read."
This book is a compilation of Warren Buffett's letters to shareholders and executives. The content includes his thoughts on human nature, the psychology of investing, strategy for equity investors, accounting methods, derivatives as investment tools and about Berkshire Hathaway.
He also shares insights into stocks he has bought over the years such as Gillette Company Inc., General Electric Co., American Express Company and U.S. Bancorp among others in this huge collection of wisdom from one of history’s most successful investors."
3. Common Stocks and Uncommon Profits by Philip Fisher
This book is written by Philip Fisher, an investor and investment analyst. In this book he describes his thirty-seven years of experience as a professional money manager who has focussed on the subject of "enterprising investors" or those that invest in small companies with growth potential.
Philip Fisher's Common Stocks and Uncommon Profits is often said to be the best book ever written about investing in small companies. Warren Buffett has called it "one of the ten greatest books on investing ever written." And for good reason-it can show you how to make money consistently over your lifetime, even if you're only starting out with a limited amount of capital.
This classic text first shows beginners how they can invest in stocks effectively without risking their entire savings, then goes on to give invaluable advice on buying and selling shares at optimum prices. The authors also provide essential information about mutual funds; stock selection criteria such as price/earnings ratios or dividend yields.
4. Security Analysis by Benjamin Graham and David Dodd
"Security Analysis" is the first book Warren Buffett ever read on investing. He was 20 years old and a student at Columbia when he followed his father's advice to buy it as a foundation for stock investing. The main text of this classic, still widely used today in business schools throughout North America, was written by Benjamin Graham and David Dodd in 1934-1938.
It presents their principles for security analysis - that investors should look through company balance sheets with all assets valued accordingly; study income statements; anticipate changes or trends in revenues over time; assess management competence; calculate what dividends will be paid out each year from earnings etc.
The most famous book on investing, and the bible for Warren Buffett. It's a "textbook" that is often used as an introduction to fundamental analysis of stocks.
This is what Warren refers to when he says “If you want to invest like me, read this book” in his letter from last year.
He didn't just say it once, Security Analysis has been recommended by him in at least two other letters over the years including one recommending reading this book.
5. A Few Lessons for Investors and Managers from Warren Buffett edited by Peter Bevelin
This is a book that provides lessons to investors and managers from Warren Buffett's experience. The lessons are grouped into three sections: Investment Strategies, Business Practices for Shareholders, Professionalism in Corporate America. This book offers practical advice on how businesses should be run and investments managed by following the principles of Warren Buffet who built his empire through meticulous analysis and disciplined investing strategy.
"Warren Buffett has been one of my heroes since I was old enough to think about such things," says Howard Marks-one of the world's most successful money managers according to Forbes magazine -in this collection edited by Peter Bevelin which includes contributions from 30 authorities in finance, business or economics including Bill Gates Sr., Chad Holliday (CEO DuPont).
6. Tap Dancing to Work: Warren Buffett on Practically Everything edited by Carol J. Loomis
Tap Dancing to Work is a collection of short essays by Warren Buffett, edited by Carol J. Loomis and published in 1996. In these articles he discusses his management philosophy at length for the first time - mainly with examples based on past events as well as some future projections.
The book's title comes from an event recounted when working late one night: "I was about halfway through my tap-dancing routine when I realized I didn't want it to end." (Loomis)
In addition to providing insight into how successful businesses should be managed, Tap Dancing offers advice on topics ranging from corporate governance to investing strategy; whether buying large cap stocks or small caps, tech companies or utilities/ services providers; what determines valued stocks; how to evaluate an investment advisor.
7. MiTek: A Global Success Story by Jim Healey
MiTek: A Global Success Story is a book that tells the story of MiTek, one of the world's most successful global engineering companies.
The book also provides detailed illustrations and explanations on how to develop your own company globally by leveraging people, processes, technologies and systems.
This book will provide inspiration for all entrepreneurs who are looking to tackle various challenges in their businesses. "Every industry has its pioneers," writes Jim Healey about his close friend Jay Hooten - co-founder with Warren Buffett of this international corporation.
8. Investing Between the Lines: How to Make Smarter Decisions by Decoding CEO Communications by L. J. Rittenhouse
Do you have a hard time getting all the information from financial statements? Learn how to decipher communication in SEC filings to make better investment decisions.
Investing Between the Lines is an insightful guide that shows investors how they can understand CEO and management communications, plus subsequent company actions, for more successful investing outcomes.
Structured around four key stages of any public-company transaction engagement (before it happens), engagement (in process), post-transaction follow-up, and divestiture or shutdown this book walks readers through strategies on making smarter investment choices by reading between lines.
The author provides invaluable insights into what’s really happening at your companies and why executives are saying what they're saying about them; How CEOs talk to investors; the language of management when they're talking to Wall Street; why speeches and conferences matter so much.
A must-read for anyone looking to invest in a company, this book will help you make better decisions about where or if to put your money.
9. Where Are The Customers’ Yachts? Or a Good Hard Look at Wall Street by Fred Schwed
This book is written by Fred Schwed with a keen sense of the foibles of his profession. The author, who has been on both sides--as an investor and as an executive in investment banking and brokerage firms gives us a portrait of Wall Street seldom seen by outsiders, its mindset at work; its manners exposed; its transactions laid bare.
Schwed also tells how he became disillusioned with the prospect for security from stocks after witnessing their failure to provide it during the Great Depression when he was just ten years old.
10. The Outsiders by William Thorndike Jr.
The Outsiders is a book written by William Thorndike Jr. that was published in 1995, and it has been translated into two languages: English and Spanish. The author presents the concept of contrarian investing with a real-life case study on how to find stocks that are undervalued at first glance but have huge potential for price appreciation when one takes the time to analyse them more thoroughly.
This can be seen through Intel Corporation's turnaround from being deemed nearly worthless during the 1970s all while Warren Buffett had invested in it since 1979 because he saw its intrinsic value as something profitable which could pay off later down the line.
The book begins with a story of how the S&P 500 Index had dropped, and shares for Intel Corporation were around $25. This was at an all-time low in 1980 when Warren Buffett invested heavily by buying large amounts of stock to inflate its perceived value so that he could sell it off later on after catching up on losses from his previous investments.
11. Dream Big by Cristiane Correa
Dream Big is on Warren Buffett's list of 20 Books Recommended by Warren Buffett, and it is because he believes that this book will help readers to find the balance between aspiration and common sense.
In his opinion, Dream Big advocates for people who want something better for themselves but are also aware of their current reality, the realities of life like family obligations or money issues shouldn't stop you from pursuing your dreams.
Dream Big is about following your dreams, but also being in tune with the reality of life. It's a balance between thinking big and having common sense--it's not enough to aspire for something; you have to do what it takes to get there.
This book talks about how people are often afraid of dreaming too much because they're scared that their aspirations will be crushed by reality. However, Cristiane argues that we should think bigger rather than smaller so as to achieve more on a higher level even if things don't work out exactly as planned or expected.
12. Jack: Straight from the Gut by Jack Welch
This book recommended by Warren Buffett. It talks about how to get ahead in today's business world and what it takes to be successful when you are trying so hard that sometimes your stomach hurts, dealing with people who make promises they don't always keep, being exposed to momentary financial panics and getting back up after disappointment.
This book will provide readers insight into one of America's most admired CEO’s, a man who has led GE for two decades during tumultuous times. And those years have been good ones. With an approach based on candor (having nothing but "straight talk") he has become revered as one of the most effective and successful CEOs in America.
13. Essays in Persuasion by John Maynard Keynes
John Maynard Keynes was a British economist whose ideas have profoundly influenced the theory and practice of modern macroeconomics, as well as the economic policies of governments. Considered to be one of the most influential economists in history, he is one of the founders of neoclassical economics (along with Alfred Marshall).
His ideas were instrumental in creating the theoretical foundations for social liberalism. In Essays in Persuasion, Keynes shows how the power of ideas can be used to shape society and provide a new foundation for liberal thought.
The book Essays in Persuasion is a collection of 27 essays written before 1936. The author, John Maynard Keynes recommends the reading of this book to get an idea about his economic thoughts and theories on society.
From these essays, you can find out more about what he thinks are the solutions for some contemporary problems such as unemployment or rising prices that people face nowadays. He also shares his point of view with politicians who might be interested in taking into account what they read here so it will not happen again when something similar happens in their countries.
14. Stress Test: Reflections on Financial Crises by Tim Geithner
Reflections on Financial Crises by Tim Geithner Warren Buffett recommended this book in his Annual Letter to Shareholders.
It is about the author's experience as secretary of the treasury and how he dealt with different challenges during financial crisis like 2008-2009, 2007 liquidity crisis etc.
This books gives us an idea of what happened from inside perspective which I find very interesting and even more informative than a news article or documentary. It also provides ideas for creating our own personal contingency plans so we are prepared when similar situations arise again in future.
I think it was a really good read because while reading it you can actually feel that stress Mr. Geithner had to deal with at time and yet still manage to keep his composure and lead the country to a better future.
15. The Little Book of Common Sense Investing by John C. Bogle
Warren Buffett, one of the most successful investors in modern history and CEO of Berkshire Hathaway Inc., has a saying that “investing is simple but not easy.” In The Little Book of Common Sense Investing, Peter Lynch shares a lifetime's worth of practical advice on how to invest successfully-and illustrates with numerous memorable examples just how sensible Warren Buffett's principles can be.
The book defines what common sense investing means for you: think long term; ignore temporary price fluctuations; Schloss believes it doesn't pay to diversify broadly by owning stocks from different industries or companies from around the world. And forget about trying to time your purchases or sales either their timing will work out well enough without your interference, because they'll with simplicity and wit, he demonstrates that anyone can achieve long-term investment success by following basic principles of sound decision making.
The Little Book of Common Sense Investing was written for all investors who want to invest like Warren Buffett without being an expert themselves using easy lessons found under everyday circumstances rather than theoretical insights gleaned only after years of study.
16. Business Adventures: Twelve Classic Tales from the World of Wall Street by John Brooks
This book is recommended by Warren Buffett. It is packed with 12 fascinating stories of major business events, from the first Union Pacific Railroad to Xerox Corporation's ill-fated entry into copy paper production.
The Law Of Success In 16 Lessons by Napoleon Hill teaches how success can be achieved through hard work and determination. The author discusses that most people do not succeed because they lack faith in themselves or their goals which he deems as an absolute necessity if one wishes to achieve victory over obstacles and triumph against all odds which life sets out for us day after day.
17. The Most Important Thing Illuminated by Howard Marks
Howard Marks is a co-founder of Oaktree Capital Management. He was the company's chairman from 1988 to 2008 and remains as its Co-Chairman, but also holds positions on the board of directors at Berkshire Hathaway Inc., Northwestern University, The Los Angeles Philharmonic Association and more.
The Most Important Thing Illuminated by Howard Marks discusses investing in general while specifically going into detail on hard assets (stocks), private equity, credit markets and fixed income securities - all without being too technical or scholarly for an audience that includes members who may be just getting started with investing.
This one has been ranked among Buffett's favorite books on investing because it simplifies complicated ideas rather than just presenting concepts or ideas in a vacuum.
Marks presents the importance of such factors as "the P/E ratio, interest rates and tax consequences" to help readers understand how these three things work together to make investing decisions.
18. Take on the Street by Arthur Levitt
Take on the Street is a book written by Arthur Levitt and talks about how to deal with Wall Street as well as street smarts.
It was published in 2002, during one of the most prosperous times for Wall Street when everything seemed limitless but it still proved that knowledge can't be underestimated even if you have all the money in the world.
The author also stressed in this book that people should focus more on finance than emotions because decisions are always made using numbers instead of feelings or intuition.
This book tackles what's going on behind closed doors at investment banks and discusses why some deals go through while others don't before they're announced to everyone else; such insider information proves invaluable whether you invest your own money or not.
19. Nuclear Terrorism: The Ultimate Preventable Catastrophe by Graham Allison
This book is a true story of how the world came dangerously close to nuclear Armageddon in 1983. Told by author Graham Allison, former Harvard professor and director of Harvard Kennedy School's Belfer Center for Science and International Affairs (part of the John F. Kennedy School), who was an advisor to U.S President Reagan at that time.
This book discusses different strategies on what can be done when it comes to preventing terrorism using weapons of mass destruction including biological or even nuclear material.
20. The Clash of Cultures: Investment vs. Speculation by John C. Bogle
Warren Buffett recommends this book because it talks about the difference between investing and speculating. This book is written by John Bogle, the founder and former CEO of Vanguard Group. It discusses how to keep one's money safe from Wall Street speculators who trade on quick-turning stocks and volatile markets.
The first edition was published in 1998 but an updated version was issued in 1999. In it he argues that a buy-and-hold investment strategy will always outperform any attempt at trading or speculation.
This book is about the difference between investing and speculation. Bogle uses his expertise in both areas to show how making intelligent investments can help you create wealth for yourself, your family, or even your company; while speculating may bring short-term gains but usually ends up costing more money than it makes.
Bogle also lays out his advice on how to avoid speculative bubbles like tulips, railroads, tech stocks etc. He discusses bonds which are not an investment but only bring down investors' bottom line.
"I read constantly. My favorite subject is business, and my second favorite subject is economics." - Warren Buffett
This is the perfect list for Warren Buffett fans or those looking to brush up on their skills in investing. All of these books are well worth reading, and many have been considered classic reads that can teach you about timeless investment principles. You'll be able to find something intriguing for any level of investor from beginner to seasoned pro.