Want To Invest? 15 Books Recommended By Billionaire Warren Buffett Which You Must Read

We all look up to the legendary investor Warren Buffett as an inspiration to grow our money through investing, right? It's clearly a no-brainer that whoever wishes to enter the investment world has looked up to the 92-year-old for advice and perhaps also get to know his secrets, right?

If you too are amongst those who are inspired by the billionaire and have the curiosity to know how he has managed to be so successful for nearly eight decades, then there indeed is a door opened by Buffett himself to help you learn.

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In the past decade or so, Warren Buffett has suggested many books that investors can read and learn from. So without further ado, let us look at a list of 15 books that Buffett, who himself is an avid reader, has mentioned in his annual letters:

15 Books Recommended By Warren Buffett

1. ¡®Poor Charlie¡¯s Almanack: The Wit and Wisdom of Charles T. Munger¡¯

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This book offers a treasure trove of financial wisdom in the form of speeches and essays written by Charlie Munger, Buffett¡¯s longtime business partner and vice president of Berkshire.

If you enjoy Buffett¡¯s unique sense of humour, wit and insights, you¡¯ll certainly get a kick out of ¡°Poor Charlie Almanack.¡± One favourite among many Munger fans is ¡°The Psychology of Human Misjudgment,¡± an essay in which he writes about the cognitive traps that investors often fall into.

¡°Just buy a copy and carry it around; it will make you look urbane and erudite,¡± Buffett joked in his 2010 shareholder letter.

2. ¡®The Intelligent Investor¡¯

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Warren Buffett has praised ¡°The Intelligent Investor¡± many times. ¡°In my early days, I, too, rejoiced when the market rose. Then I read chapter eight of Ben Graham¡¯s ¡®The Intelligent Investor,¡¯ the chapter dealing with how investors should view fluctuations in stock prices,¡± he wrote in his 2011 letter, as per a CNBC report. ¡°Immediately, the scales fell from my eyes, and low prices became my friend. Picking up that book was one of the luckiest moments in my life.¡±

The billionaire investor mentioned it again in 2013: ¡°Of all the investments I ever made, buying Ben¡¯s book was the best (except for my purchase of two marriage licenses). In contrast, Ben¡¯s ideas were explained logically in elegant, easy-to-understand prose (without Greek letters or complicated formulas).¡±

3. ¡®Mitek: A Global Success Story, 1981-2011¡¯

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MiTek Industries Inc., a supplier of engineered products for construction, is known as one of Berkshire¡¯s very successful subsidiaries, as per the report. This book tells the story of how MiTek, which started out as a small Midwestern firm in 1955, went from being on the verge of financial collapse to becoming a dominant supplier in its industry.

¡°You¡¯ll learn how my interest in the company was originally piqued by my receiving in the mail a hunk of ugly metal whose purpose I couldn¡¯t fathom. Since we bought MiTek in 2001, it has made 33 ¡®tuck-in¡¯ acquisitions, almost all successful,¡± Warren Buffett wrote in the year 2011.

Also Read: Who Is Ajit Jain, The Indian-American Warren Buffett Calls As His 'Good Luck Hiring' At Berkshire

4. ¡®A Few Lessons for Investors and Managers From Warren Buffett¡¯

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This book is a short and easy must-read for managers and investors looking to soak up timeless wisdom from the Oracle of Omaha. In his own words, Warren Buffett reportedly explains how to think about important topics such as business valuation, traits of good and bad businesses, acquisitions and their traps, how to reduce risk, corporate governance and the importance of trust.

It essentially ¡°sums up what Charlie and I have been saying over the years in annual reports and at annual meetings,¡± he wrote in 2011.

5. ¡®Tap Dancing to Work: Warren Buffett on Practically Everything¡¯

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In his 2012 letter, Buffett gave a shout-out to Carol Loomis, a former editor-at-large at Fortune magazine and author of ¡°Tap Dancing to Work.¡± She ¡°has been invaluable to me in editing this letter since 1977,¡± he wrote, the report mentioned.

Loomis offers readers insights into Buffett¡¯s investment strategies, along with his wisdom on management, philanthropy, public policy and even parenting.

Also included in one of the chapters is a 1996 essay from Microsoft co-founder Bill Gates,¡ä describing his early impressions of Buffett as they struck up their close friendship.

Also Read; How A Lost iPhone Led To Warren Buffett Investing Billions In Apple

6. ¡®The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success¡¯

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In ¡°The Outsiders,¡± William N. Thorndike, a graduate of Harvard College and the Stanford Graduate School of Business, details the extraordinary success of eight successful CEOs who took a radically different approach to corporate management. As per the report, you might not recognize all their names, but you¡¯ve probably heard of their companies: General Cinema, Ralston Purina, Berkshire Hathaway, General Dynamics and Capital Cities Broadcasting, to name just a few.

¡å[¡®The Outsiders¡¯] is an outstanding book about CEOs who excelled at capital allocation,¡± Warren Buffett reportedly wrote in 2012. ¡°It has an insightful chapter on our director, Tom Murphy, overall the best business manager I¡¯ve ever met.¡±

7. ¡®The Clash of the Cultures: Investment vs. Speculation¡¯

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This is another book recommended by Warren Buffett in his 2012 annual letter. In ¡°Clash of the Cultures,¡± John C. Bogle, founder of The Vanguard Group (who has been credited as the creator of the world's first index fund), writes about the changing culture in the mutual fund industry, how speculation has invaded our national retirement system and the need for a federal standard of fiduciary duty.

For investors, the most valuable takeaway is his list of 10 simple rules of ¡°Common Senses Investing.¡± According to Bogle, the report mentioned, it ¡°may not be the best strategy ever devised. But the number of strategies that are worse is infinite.¡±

One of the popular lines from the book is ¡°Where returns are concerned, time is your friend. But where costs are concerned, time is your enemy.¡±

8. ¡®Investing Between the Lines: How to Make Smarter Decisions by Decoding CEO Communications¡¯

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Warren Buffett recommended this book in his 2012 shareholder letter.

Drawing from more than 10 years¡¯ worth of research, L.J. Rittenhouse, a trust and valuation expert, outlines a system to measure organizational trustworthiness as a predictor of investment potential, as per the report.

¡°So many books have been written on how to analyze a company, but so few have been written on how to analyze the person in control of a company,¡± according to one Amazon reviewer, who gave Investing Between the Lines a five-star rating. ¡°This book solves that problem.¡±

Also Read: How Warren Buffett's $300 Million Help Saved Harley Davidson

9. ¡®Berkshire Hathaway Letters to Shareholders¡¯

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This is one of Max Olson¡¯s many compilations of Berkshire Hathaway letters, going back to 1965. It ¡°includes an index that I find particularly useful, specifying page numbers for individuals, companies and subject matter,¡± Buffett reportedly wrote in 2013.

10. ¡¯40 Chances: Finding Hope in a Hungry World¡¯

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In 2006, when Warren Buffett announced he would begin to give away a bulk of his fortune to philanthropy, he challenged his son, Howard G. Buffett, to do something great in the world. So Howard decided to reportedly give himself 40 years to put more than $3 billion to work on this challenge. This book, which Buffett said readers ¡°will enjoy,¡± captures that journey.

11. ¡®The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns¡¯

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Another book from John C. Bogle that Warren Buffett recommended is perhaps the most important one on this list for entry-level investors.

¡°There are a few investment managers, of course, who are very good ¡ª though in the short run, it¡¯s difficult to determine whether a great record is due to luck or talent,¡± Buffett wrote in 2014, as per the report, adding ¡°Rather than listening to their siren songs, investors ¡ª large and small ¡ª should instead read ¡®The Little Book of Common Sense Investing.¡¯¡±

12. ¡®Where Are the Customers¡¯ Yachts? Or a Good Hard Look at Wall Street¡¯

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Warren Buffett had recommended this ¡°wonderful¡± book in his 2014 letter, but it wasn¡¯t the first time he gave it significant praise. ¡°This is the funniest book ever written about investing,¡± he proclaimed back in 2006. ¡°It lightly delivers many truly important messages on the subject.¡±

In ¡°Where Are the Customer Yachts?,¡± Fred Schwed reportedly exposes the hypocrisy of Wall Street through the story of a visitor to New York who admires the yachts of bankers and brokers. He then wonders where all the customers¡¯ yachts have gone.

13. ¡®Limping On Water¡¯

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In ¡°Limping on Water,¡± Phil Beuth chronicles his broadcasting career at Capital Cities/ABC-TV, which operates in several areas of the media business.

The book ¡°tells you a lot about its leaders, Tom Murphy and Dan Burke. These two were the best managerial duo ¡ª both in what they accomplished and how they did it ¡ª that Charlie and I ever witnessed,¡± Warren Buffett wrote in 2015, as per the report ¡°Much of what you become in life depends on whom you choose to admire and copy.¡±

14. ¡®Warren Buffett¡¯s Ground Rules: Words of Wisdom from the Partnership Letters of the World¡¯s Greatest Investor¡¯

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Pulling from letters that billionaire Buffett wrote to his partners between 1956 and 1970, veteran financial advisor Jeremy Miller dissects the billionaire¡¯s ¡°ground rules¡± for investing.

¡°Mr Miller has done a superb job of researching and dissecting the operation of Buffett Partnership Ltd. and of explaining how Berkshire¡¯s culture has evolved from its BPL origin,¡± Buffett reportedly wrote in 2015. ¡°If you are fascinated by investment theory and practice, you will enjoy this book.¡±

15. ¡®Shoe Dog¡¯

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In his annual letter of 2016, Warren Buffett called ¡°Shoe Dog¡± the ¡°best book I read last year.¡± Author Phil Night, co-founder and current chairman emeritus of Nike, Inc., ¡°is a very wise, intelligent and competitive fellow who is also a gifted storyteller,¡± he added.

As per the report, Knight¡¯s memoir gives readers a glimpse into what life was like behind the scenes of a small, intrepid startup that quickly rose to become one of the world¡¯s most recognizable brands.

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