When he spoke to MBA students at Columbia Business School in 2000, the former Berkshire Hathaway CEO said, “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not very many of you will do it,” as quoted by CNBC.
Books That Shaped Warren Buffett’s Thinking
Over the years, certain books have repeatedly surfaced in his shareholder letters, annual meetings, and interviews. These are not casual suggestions. They are books he has credited with shaping how he thinks about markets, businesses, and decision-making.Also read: Word of the day: Swoon
Warren Buffett Book Recommendation - Poor Charlie's Almanack: The Essential Wit and Wisdom of Charles T. Munger by Charlie Munger
One of the most consistent recommendations is Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger, edited by Peter D. Kaufman. The book collects speeches and essays from Charlie Munger, Buffett’s longtime business partner and vice chairman of Berkshire Hathaway. It offers financial wisdom, sharp humor, and insights into decision-making through mental models drawn from multiple disciplines.Buffett has praised it at nearly every Berkshire Hathaway annual meeting and highlighted it in his 2010 shareholder letter, joking that readers should “Just buy a copy and carry it around; it will make you look urbane and erudite,” as quoted by CNBC.
For Buffett, the book reflects the broad thinking that complements the value investing framework he learned from Benjamin Graham, as per a New Trader U report.
Warren Buffett Book Recommendation - The Intelligent Investor by Benjamin Graham
No book appears more often in Buffett’s recommendations than The Intelligent Investor by Benjamin Graham. He first picked it up at age 19 and has reportedly called it the best book on investing ever written, as per the New Trader U report.In his 2011 shareholder letter, Buffett described how reading Chapter 8, which addresses market fluctuations, changed everything for him. He wrote, “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,” adding, “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," as quoted by CNBC.
Buffett mentioned this book again in 2013, saying, “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)," as quoted by CNBC.
Warren Buffett Book Recommendation - Shoe Dog: A Memoir by the Creator of Nike
In 2016, Buffett named Shoe Dog by Phil Knight the best book he read the previous year. Knight, co-founder and chairman emeritus of Nike, recounts the company’s journey from a small startup to one of the world’s most recognizable brands. Buffett described Knight as wise, intelligent, competitive, and a gifted storyteller, as per the CNBC report. The memoir offers a behind-the-scenes look at the grit and persistence required to build a global business.Warren Buffett Book Recommendation - The Little Book of Common Sense Investing: The Only Way to Guarantee Your Fair Share of Stock Market Returns
Another frequent recommendation is The Little Book of Common Sense Investing by John C. Bogle, founder of Vanguard and creator of the first index fund. In his 2014 shareholder letter, Buffett urged investors to read Bogle’s book instead of listening to the “siren songs” of expensive fund managers.He wrote. “There are a few investment managers, of course, who are very good — though in the short run, it’s difficult to determine whether a great record is due to luck or talent,” adding, “Rather than listening to their siren songs, investors — large and small — should instead read The Little Book of Common Sense Investing," as quoted by CNBC.
Bogle’s case for low-cost, passive investing aligns closely with Buffett’s own endorsement of simple S&P 500 index fund strategies.
Warren Buffett Book Recommendation - The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
In 2012, Buffett highlighted The Outsiders by William N. Thorndike as an outstanding book about CEOs who excelled at capital allocation. The book profiles eight unconventional chief executives whose companies significantly outperformed the market. Among them are leaders of companies such as General Cinema, Ralston Purina, Berkshire Hathaway, General Dynamics, and Capital Cities Broadcasting.Buffett said at that time, ″[‘The Outsiders’] is an outstanding book about CEOs who excelled at capital allocation,” adding, “It has an insightful chapter on our director, Tom Murphy, overall the best business manager I’ve ever met," as quoted by CNBC.
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