7 Best Books Recommended by Warren Buffett

Warren Buffett, one of the greatest investors ever, didn’t just get there by luck. He’s a big reader, soaking up knowledge like a sponge. The books he recommends are gold for anyone wanting to understand investing, business, or just how to think smarter. Here’s a rundown of seven must-reads he’s praised, with a few key points each one brings to the table. These aren’t just for finance nerds—they’re for anyone who wants to make better decisions.

1. Business Adventures by John Brooks

This book is a collection of stories about big moments in corporate America, like the rise and fall of companies or wild market events. Buffett called it his favorite when Bill Gates asked him for a recommendation. It’s like reading real-life business dramas that teach you how companies tick.

• Key Points:
  • Shows how human nature drives business successes and failures.
  • Explains why even big companies can mess up if they’re not careful.
  • Teaches you to spot patterns in how businesses handle crises.

2. Common Stocks and Uncommon Profits by Philip Fisher

Philip Fisher’s book is all about looking at businesses like a detective, not just crunching numbers. Buffett says he’s “15% Fisher,” which means this book shaped a big part of his investing style. It’s about understanding a company’s soul, not just its balance sheet.

• Key Points:
  • Focus on a company’s long-term potential, not short-term gains.
  • Look at the quality of management and how they run the business.
  • Invest in companies with strong growth prospects, and you really get.

3. Security Analysis by Benjamin Graham & David Dodd

This is the bible of value investing, written by Buffett’s mentor, Benjamin Graham. It’s a deep dive into how to analyze stocks like a pro. Buffett says this book is a must for anyone serious about investing—it’s like a blueprint for his career.

• Key Points:
  • Buy stocks like you’re buying a business, not just a piece of paper.
  • Always look for a “margin of safety” to protect against losses.
  • Understand the real value of a company, not what the market says.

4. The Outsiders by William N. Thorndike Jr.

This one’s about CEOs who did things differently and won big. Buffett praised it in his 2012 shareholder letter for showing how smart leaders use money wisely. It’s not just for investors—it’s about making bold, thoughtful choices.

• Key Points:
  • Great leaders focus on allocating capital smartly, not just following trends.
  • Long-term thinking beats chasing quick profits.
  • Learn from CEOs who zig when everyone else zags.

5. The Intelligent Investor by Benjamin Graham

Buffett calls this the best book on investing, period. Written by Graham, it’s the ultimate guide to value investing. Chapters 8 and 20 are Buffett’s favorites—they’re like cheat codes for staying calm and smart in the market.

• Key Points:
  • Treat the market like a moody friend (Mr. Market) who’s often wrong.
  • Stick to disciplined investing to avoid emotional traps.
  • Focus on the long game, not daily stock price swings.

6. A Few Lessons for Investors and Managers by Peter Bevelin

This book pulls together Buffett and his partner Charlie Munger’s wisdom in a simple way. It’s not directly recommended by Buffett, but it’s built on his principles. Think of it as a shortcut to understanding how he thinks about money and business.

• Key Points:
  • Learn from mistakes—yours and others’—to get better.
  • Keep things simple and stick to what you know.
  • Patience and clear thinking are your biggest assets.

7. Poor Charlie’s Almanack by Peter D. Kaufman

This is a deep dive into Charlie Munger’s mind, Buffett’s right-hand man. Buffett hasn’t outright recommended it, but his respect for Munger’s ideas runs deep. It’s packed with ways to think sharper about life and business, not just investing.

• Key Points:
  • Use “mental models” to understand the world from different angles.
  • Avoid dumb mistakes by thinking clearly and staying humble.
  • Keep learning across different fields to make better decisions.

These books aren’t just about making money—they’re about thinking clearly, staying patient, and understanding how the world works. Buffett’s been at it for decades, and these are the ideas that shaped him. Pick one up, read it slowly, and let it sink in. You’ll see business and life a little differently.

Share and subscribe to the blog by email, and join our WhatsApp community.

SchoolOkay | WhatsApp Channel

SchoolOkay WhatsApp Channel. It’s a channel for sharing educational content. 0 followers

WhatsApp.com

Share and subscribe to the blog by email.