Warren Buffet, one of the greatest investors on the planet, acquired most of his knowledge on investing from the books he read. Even to this day, he spends 80% of his time reading. He credits his success to his reading habit and suggests that everyone should “read 500 pages every day. That’s how knowledge works. It builds up, like compound interest.” If you want to become a better investor, start with these 7 books recommended by Buffett.

01

The Little Book Of Common Sense Investing

John C. Bogle

In his 2014 Annual Shareholder Letter, Warren Buffett had mentioned that instead of listening to the “siren songs” of investment managers, everyone should read The Little Book of Common Sense Investing. The key tenet of Bogle’s book is that investing is all about common sense. Bogle includes deep insights and practical advice on investing, such as the significance of index investing and why it’s the best way to guarantee returns.

Buy it here.

02

The Intelligent Investor

Benjamin Graham

Warren Buffett says that picking up this book was “one of the luckiest moments in my life” and “my financial life changed with that purchase”. The Intelligent Investor is considered one of the best books on how to achieve your financial goals. The book covers Graham’s ideology of value investing, which teaches an investor how to avoid errors and develop long-term strategies. It also educates investors about fluctuations in the stocks price.

Buy it here.

03

Security Analysis

Benjamin Graham, David Dodd

As per Warren Buffett, Security Analysis is the “roadmap for investing that I have been following for 57 years.” The book provides techniques and strategies for investors to achieve financial success. It points out that the analysis of a balance sheet is the primary factor for success in investing. The book introduced the foundations of value investing, which are still relevant in the 21st Century.

Buy it here.

04

A Few Lessons For Investors And Managers From Warren E. Buffett

Peter Bevelin

About the book, Buffett says, “It sums up what Charlie and I have been saying over the years in annual reports and at annual meetings.” In the book, Bevelin explains the investment and operating principles of Berkshire Hathaway. He talks about how managers and investors can increase their probability of making profits and reduce their losses if managers think like investors and investors like businessmen. In this timeless collection of lessons on investment, Buffett gives his advice on how to value a business, how to reduce risk, and how to learn from mistakes, amongst other things.

Buy it here.

05

Common Stocks And Uncommon Profits

Philip Fisher

According to Warren Buffett, Common Stocks And Uncommon Profits covers “A thorough understanding of the business, obtained by using Phil’s techniques… enables one to make intelligent investment commitments.” In this book, Fisher discusses his philosophies and shares his wisdom on investing. It teaches you the importance of not fixating on your financial statements and stresses on the need for evaluating a company’s management. Fisher provides a framework for the questions you need to ask before investing and where to look for answers.e truth.

Buy it here.

06

The Clash Of The Cultures

John C. Bogle

This book was recommended in the 2012 annual shareholder letter by Warren Buffett. In The Clash Of The Cultures, Bogle talks about how speculation is now dominating the investment sector, and how short-term speculation has destroyed long-term investment. It goes on to suggest measures to deal with these problems. The book provides practical tips on avoiding impulse investing, not following the herd when it comes to making an investment, and avoiding risk.

Buy it here.

07

Warren Buffett’s Ground Rules: Words Of Wisdom From The Partnership Letters Of The World’s Greatest Investor

Jeremy C. Miller

In Buffett’s words, “If you are fascinated by investment theory and practice, you will enjoy this book.” Between 1956 and 1970, he wrote a series of letters to his partners sharing his thoughts, approaches and reflections. With Buffett’s blessing, these letters have been compiled for the first time by Miller, and highlight Buffett’s ground rules for investing, such as his diversification strategy, how he makes decisions, and his tactics for improving market results by at least 10% per annum. Miller provides additional context and insight which also show how Buffett’s thinking evolved in that period.

Buy it here.

BONUS

The Essays Of Warren Buffett

Lawrence A. Cunningham

If you want to read Buffet own lessons on investing, pick up The Essays Of Warren Buffett, currently on its fourth edition. It is a collection of his annual letters to the shareholders of Berkshire Hathaway, which contains his investment wisdom and philosophy. The book covers various principles on market fluctuations value investing, dividends, reinvestments, etc. These valuable and timeless lessons on investing are still relevant in the current investment scenario.

Buy it here.

Have you read any of these books? If so, tell us about one lesson you learnt? Which other books do you recommend for people who want to become better at investing? Share with us in the comments.

Ankit Mahawar

Ankit Mahawar

Ankit loves stories, be it in any form- print, media or theatre. After reading Angels and Demons, he fell in love with books, especially suspense, thriller, and fantasy. He is a big fan of Harry Potter series. He quit his engineering career to become a writer and currently works with The Curious Reader. Apart from writing he also loves filmmaking, photography, traveling and cooking. You can reach him on Instagram.