For Warren Buffett, one of the world’s most successful investors, building wealth starts with building knowledge. The Berkshire Hathaway chairman has often credited reading with shaping his approach to investing, decision-making and business. Over the years, Buffett has recommended books covering everything from investing principles and business strategy to leadership and human behaviour. Here are some of the books he has praised that offer an insight into the ideas that influenced his thinking.
Buffett once said that he reads for several hours a day and compared the way knowledge accumulates to compound interest.
Here are five books recommended by Warren Buffett that are worth adding to your reading list.
‘Shoe Dog’
By: Phil Knight
Nike co-founder Phil Knight’s memoir, Shoe Dog , tells the story of how he built the sportswear company from its early days. Buffett called it the “best book I read” in 2016.
‘Where Are the Customers’ Yachts? Or a Good Hard Look at Wall Street’
By: Fred Schwed
Fred Schwed’s book takes a humorous look at Wall Street and the investing industry. Buffett recommended it in 2006, calling it one of the funniest books ever written about investing while highlighting the important lessons it delivers about the financial world.
‘The Clash of the Cultures: Investment vs. Speculation’
By: John C. Bogle
Written by Vanguard founder John C. Bogle, the book examines the difference between long-term investing and short-term speculation. Buffett recommended it in his 2012 shareholder letter and praised Bogle’s approach to investing.
‘The Intelligent Investor’
By: Benjamin Graham
Benjamin Graham’s The Intelligent Investor is among Buffett’s most well-known book recommendations. Buffett has repeatedly credited the book with shaping his investment philosophy, describing his discovery of it in 1949 as one of the luckiest moments of his life.
He later praised Graham for explaining investment principles in clear, logical and easy-to-understand language.
‘Warren Buffett’s Ground Rules: Words of Wisdom from the Partnership Letters of the World’s Greatest Investor’
By: Jeremy C. Miller
Jeremy C. Miller’s book examines letters Buffett wrote to his investment partners between 1956 and 1970. It brings together the investment principles and rules Buffett followed during the early years of his career.
Buffett recommended the book in 2015, saying it would appeal to readers interested in investment theory and practice.
