Who does not know Warren Buffett, one of the richest people in the world with a fortune worth the US $ 78.6 billion?
Reading is a habit that has never been abandoned by successful people. Based on the sharing of his experience, Warren Buffett says that most of the wealth he earns comes from his habit of reading books.
Since embarking on his journey in the world of investment, every day he will read 600 to 1000 pages of books. In fact, Warren Buffet will even spend 80 percent of his time reading at work. Among his reading materials are, journals, reports, newspapers, and even books. Even now, he devotes a lot of time reading.
For him, it is not easy to be an investor, it requires us to connect more facts and information then apply it to action.
What books did Warren Buffet read? Here are nine investment books recommended by Warren Buffet;
1. “The Intelligent Investor” by Wall Street legend Benjamin Graham.
He started reading this book at the age of 19. This book was a surprise for him and gave him the most lessons. Through this book, he formed an investment framework.
As Warren Buffet says,
"To be a successful investor does not require high IQ, business insight, or critical information," Buffett said.
“What is needed is a strong intellectual framework for decision-making and the ability to control the emotions of that framework. This book is accurate and clearly organizes the right framework. You have to be good at controlling your emotions, ”he said.
The book was first published in 1949 and Buffet read for the first time in 1950.
Graham tried to pioneer and popularize the philosophy of value investing, which dissects the difference between stock prices and business value. Although this book has been around for a long time, it remains a must-read for investors.
2. "Security Analysis" is also the work of Benjamin Graham.
Buffett says this book has given him an investment map and now he has lived it for 57 years.
If in the book The Intelligent Investor, we will find more narratives and stories, but this book is more in-depth because there are stronger analyzes, including numerical calculations and fairly complete data.
3. “Common Stocks and Uncommon Profits” by Philip Fisher.
Philip Fisher is an expert and author who specializes in investing. The buffet is indeed a true interest in Fisher.
The book emphasizes a very important debate, which is not to be heavily influenced by financial reporting alone. But it is necessary to look at and take into account the management of the company.
4. “Business Adventures: Twelve Classic Tales from the World of Wall Street” by John Brooks.
This book Buffet suggested to Bill Gates when asked about which book was his favorite. After reading Gates commented that the book is very important to develop a great business.
This book tells the story of Brook's journey in the stock market. Like a travelog but with pretty in-depth data and analysis.
The other 5 books that Buffet recommends are;
5.The Clash of the Cultures ”by John Bogle,
6. “The Outsiders” by William Thorndike Jr.
7.Jack: Straight From The Gut ”by Jack Welch,
8. “The Essays of Warren Buffett” by Warren Buffett and
9. “Stress Test: Reflections on Financial Crises” by Tim Geithner.
