- Reading time: 7 mins 28 secs
Warren Buffett, the legendary investor and one of the wealthiest individuals in the world, has always been a fan of continuous learning.
Throughout his career, he has attributed much of his success to his extensive reading that has become a habit.
As we enter 2024, here’s a look at the top 10 Warren Buffett books for this year.
#10 The Intelligent Investor by Benjamin Graham
Buffett has repeatedly credited The Intelligent Investor as a major influence on his thinking.
First published in 1949, the book remains a highly respected and timeless masterpiece.
Benjamin Graham, often referred to as the “father of value investing,” laid the foundation for many successful investors, including Buffett.
Published in the aftermath of the Great Depression and World War II, Graham provides a rational and disciplined approach to investing aimed at protecting investors from the irrational excitement of the stock market.
Key Lessons
- Concept of “margin of safety” – i.e. buying stocks when they are trading below their intrinsic value, thus minimising risk and maximising potential gains
- Valuable insights into market psychology
- The importance of thorough research
- Having a long-term investment horizon
- Need to control one’s emotions in the face of market volatility
Buffett’s View
- warren buffett first read the book when he was just 19 years old and has reread it multiple times over the years
- It has served as the cornerstone of his investment philosophy throughout his successful career
- He has described it as the best book ever written on investing
Warren Buffett’s continued endorsement of The Intelligent Investor underscores its enduring relevance and wisdom because the book’s principles remain as pertinent today as they were in the mid-20th century.
#9 Business Adventures by John Brooks
This Warren Buffett books recommendation has been a must-read for investors since the great investor recommended it back in 1991.
Originally published in 1969, Business Adventures is a classic that has stood the test of time. It’s a collection of corporate stories and essays that provides invaluable insights into the complexities of the business world.
Despite being written over half a century ago, the lessons and principles discussed continue to hold relevance in today’s fast-paced and ever-changing business landscape.
John Brooks’s keen observations and storytelling provide a window into the challenges and triumphs that businesses face.
Highlights
The book covers a wide range of topics, from the stock market crash of 1962 to the rise and fall of major corporations, and it delves into the motivations and actions of key players in these events.
These real-world cases and the decisions and strategies employed by businesses and their leaders, offers readers a wealth of wisdom that can be applied to contemporary business and financial scenarios.
Whether you are a seasoned investor or someone looking to gain insights into the world of business, this book offers a treasure trove of wisdom that transcends the passage of time.
Buffett’s View
Business Adventures is a recommended book for 2024 because it offers timeless lessons about business and investing through real-life stories and case studies, providing valuable insights into the principles of successful business practices.
#8 A Random Walk Down Wall Street by Burton G. Malkiel
First published in 1973, A Random Walk Down Wall Street is an important work that has gained a reputation for presenting a perspective on the stock market known as the Efficient Market Hypothesis (EMH).
This book has long been regarded as an essential read for anyone interested in understanding different viewpoints on investing, including those held by Buffett.
The book has been revised and updated over the years to incorporate developments in financial markets and theories.
Efficient Market Hypothesis (EMH)
The efficient market hypothesis posits that financial markets are efficient and that all available information is already reflected in stock prices.
In other words, it suggests that it is impossible to consistently beat the market through stock picking or market timing because prices already incorporate all known information.
This hypothesis stands in contrast to Buffett’s approach, which involves fundamental analysis and value investing, aiming to identify undervalued companies that can provide long-term returns.
Topics Covered
- The basics of investing in stocks and bonds
- Portfolio diversification
- The impact of fees and taxes on investment returns
Buffett’s View
- This warren buffets book recommendation is notable for the fact that Buffett does not agree fully with EMH. It therefore demonstrates Buffett’s openness to diverse viewpoints and his commitment to understanding different perspectives in the world of finance and investing.
- Known for his great appetite for reading and his belief in constantly expanding his knowledge base. This book is evidence of Buffett’s intellectual curiosity.
Whether you are a seasoned investor or a novice looking to gain insights into various investment theories, reading A Random Walk Down Wall Street brings understanding to various market perspectives.
Warren Buffett’s recommendation, despite his differing investment philosophy, highlights the importance of considering diverse perspectives in the complex world of finance as we head into 2024.
#7 The Outsiders by William N. Thorndike Jr.
(Full title: The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success)
Published in 2012, this book delves into the remarkable success stories of eight unconventional CEOs and their unique approaches to corporate management.
Warren Buffett’s praise for the management principles of exceptional CEOs is well-known, and The Outsiders provides an in-depth analysis of the strategies employed by these remarkable leaders who outperformed their peers.
Talking Points
- The book begins by introducing the concept of “capital allocation,” which is central to the success of the CEOs featured in the book.
- Capital allocation involves making decisions about how a company’s financial resources, including cash and debt, are deployed.
- The CEOs demonstrated a keen ability to allocate capital wisely, often by repurchasing shares, paying out dividends, or pursuing strategic acquisitions when it made sense for their companies.
Buffett’s View
This selection in Warren Buffett books for 2024 is important for it has long emphasised the importance of capital allocation in his own investment philosophy.
He recognises that how a CEO allocates capital can significantly impact a company’s long-term performance and shareholder value.
Book Highlights
- Explores the financial aspects of these CEOs’ strategies
- Delves into their unique leadership styles
- The emphasis they placed on creating shareholder value
- Illustrates their ability to think long-term
- Their focus on sustainable growth and value creation, rather than short-term stock market fluctuations
The Outsiders offers valuable insights into the importance of unconventional thinking and the willingness to challenge the status quo in business.
It showcases CEOs who were not afraid to make bold decisions and take calculated risks, all while maintaining a disciplined and rational approach to managing their companies.
By recommending The Outsiders Buffett shows us the significance of this principle and the valuable lessons it offers for both investors and business leaders.
#6 The Snowball: Warren Buffett and the Business of Life by Alice Schroeder
Published in 2008, The Snowball is a comprehensive and engaging biography that is easy to read and provides a deep and intimate look into the life, career, and philosophies of Warren Buffett.
Alice Schroeder, a former Wall Street analyst, had unprecedented access to Buffett and his inner circle, which allowed her to craft a biography that goes beyond the surface of his public persona.
Topics
The book offers readers an insider’s perspective on:
- Buffett’s childhood
- early business ventures
- investment strategies
- personal life, from early days as a young investor to his transformation into a billionaire mogul
- insights into his family
- philanthropic endeavours
- views on success and happiness
It explores his relationships, including his close friendship with Charlie Munger, his investment decisions, and the evolution of his Berkshire Hathaway conglomerate.
Takeaways
Through the book, readers gain a deeper understanding of the principles that have driven Buffett’s investment success:
- his emphasis on value investing
- long-term thinking
- importance of ethics in business
Despite the passage of time since its publication, the book remains relevant for those interested in understanding the mindset and principles that have guided Buffett’s success.
Whether you are a fan of Warren Buffett books or simply seeking to learn from a remarkable life story, Schroeder’s book offers an enjoyable and informative journey through the life and mind of this legendary investor.
Buffett’s recommendation of The Snowball reaffirms the enduring appeal of the book and its value as a source of insight into his personal journey and investment philosophy.
#5 Poor Charlie's Almanack by Charles T. Munger
(Full title: Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger)
This is a compilation of speeches and writings by Charles T. Munger, first published in 2005.
Charles Munger, the long-time business partner and close friend of Warren Buffett, is renowned for his exceptional wisdom, wit, and unique approach to investing and life.
As Warren Buffett’s partner at Berkshire Hathaway, Munger played a significant role in the company’s success and has been instrumental in shaping its investment philosophy and growing the company.
Highlights
The entry among warren buffett recommended books covers a wide range of topics, including:
- investing
- business
- psychology
- personal development
- Munger’s thoughts on the principles of rational thinking
- the importance of mental models
- the benefits of interdisciplinary learning
- the value of patience
- the dangers of overconfidence
- the benefits of thinking independently
He encourages readers to build a mental framework by drawing insights from various fields, including:
- psychology
- economics
- mathematics
- history
Beyond his wisdom on investing and decision-making, the book also sheds light on Munger’s personal life, ethics, and his philanthropic endeavors.
His approach to success is grounded in principles of:
- integrity
- humility
- a lifelong commitment to learning and self-improvement
Charles Munger’s enduring partnership with Warren Buffett and his unique perspective make this book a valuable resource for those seeking to understand not only the principles of successful investing but also the art of decision-making and personal growth in 2024.
#4 Security Analysis by Benjamin Graham and David Dodd
First published in 1934, Security Analysis is an iconic and enduring book that has had a profound impact on the world of investing and has significantly influenced Buffett’s investment philosophy.
This book, another classic co-authored by Benjamin Graham, is often regarded as the cornerstone of value investing. This is the discipline that emphasises the importance of thoroughly analysing and understanding the intrinsic value of securities before investing.
Background
Benjamin Graham was a mentor to Warren Buffett and played a pivotal role in shaping his investment approach.
Published during the aftermath of the Great Depression, Security Analysis sought to provide a rational and disciplined approach to investment analysis, particularly in a time of market turmoil and widespread speculation.
Despite being written nearly a century ago, the principles and concepts outlined in the book remain foundational for investors seeking to navigate the complexities of the stock market and make informed investment decisions.
Topics
The book covers a wide range of topics:
- financial analysis
- investment analysis
- financial analysis
- bond analysis
- stock valuation
- market psychology
- risk assessment
- “margin of safety” (see Intelligent Investor review above)
It provides readers with a comprehensive framework for evaluating securities and making rational investment decisions.
The book’s emphasis on rigorous analysis of financial statements and its focus on understanding a company’s fundamentals have become fundamental principles in these areas.
This warren buffets book recommendation demonstrates its enduring importance as an essential resource for serious investors seeking a deep understanding of value investing principles.
#3 The Essays of Warren Buffett by Lawrence A. Cunningham
The Essays of Warren Buffett was first published in 1997 by Lawrence Cunningham, a professor of law and corporate governance expert. He compiled, edited and organised the letters to create a coherent and instructive narrative.
The book has since become an inspirational work in the field of investing and corporate governance. It offers readers a unique and comprehensive insight into the investment principles, strategies, and philosophies of Warren Buffett.
Background
The book is primarily a collection of Warren Buffett’s annual letters to shareholders of Berkshire Hathaway, the multinational conglomerate he chairs and has transformed into one of the world’s most valuable companies.
These letters span several decades, providing a rich historical perspective on Buffett’s journey as an investor and time steering Berkshire Hathaway.
One of the key attractions of The Essays of Warren Buffett is:
- the simplicity of Buffett’s communication
- demystification of the world of investing
- making complex concepts accessible to a broad audience
He also displays humility, wit, and directness, which resonates with readers and helps convey his timeless investment wisdom.
Topics
The book covers a wide range of topics, including:
- the importance of economic moats (competitive advantages)
- the value of long-term thinking
- the pitfalls of short-termism
- the significance of ethics and integrity in business
Buffett’s emphasis on rationality, discipline, and the pursuit of intrinsic value are recurring themes throughout the letters.
Warren Buffett’s annual letters are more than just summaries of Berkshire Hathaway’s financial performance.
They are instructive guides on:
- how to think about investing
- how to approach business decisions
- how to navigate the ever-changing financial landscape
These letters provide a valuable framework for making sound investment decisions and have influenced countless investors and business leaders.
This waren buffet book recommendation underlines the book’s enduring relevance and importance as a source of guidance and inspiration for those interested in understanding his investment philosophy.
Whether you are an aspiring investor or a seasoned professional, this compilation offers a treasure trove of insights and wisdom.
#2 The Art of Thinking Clearly by Rolf Dobelli
Published in 2011, The Art of Thinking Clearly is a thought-provoking book that explores the various “cognitive biases” and thinking errors that often cloud human judgment and decision-making.
Cognitive bias is when our brains make us think or believe something that might not be true because of the way we see or understand things.
The Book
Dobelli’s book is a comprehensive guide to the common cognitive biases that influence our thinking processes.
It draws upon insights from:
- psychology
- economics
- behavioral science
This helps to shed light on the ways in which our minds can lead us astray when making decisions.
The book is structured into short, standalone chapters, each focusing on a specific cognitive bias or myth, making it easy to understand.
The book covers a wide array of cognitive biases and thinking errors, including:
- confirmation bias
- overconfidence
- anchoring
- loss aversion
For each bias, there’s real-world examples and practical advice on how to recognise and mitigate its impact on decision-making.
While The Art of Thinking Clearly is not specifically focused on investment, the lessons are highly applicable to the field of finance.
By understanding these biases and developing strategies to counteract them, investors can improve their ability to make rational and informed choices in the world of finance.
The book extends its insights to various aspects of life, such as:
- relationships
- career choices
- personal well-being
This makes it a valuable resource for anyone seeking to enhance their decision-making skills and lead a more rational and fulfilling life.
Buffett’s View
- warren buffett has always been a firm believer in sound decision-making in both life and investment, and consistently emphasised the importance of understanding and avoiding these mental pitfalls.
- He has famously stated that the most important quality for an investor is temperament, rather than intelligence, and this book serves as a valuable resource for developing the kind of temperament needed for sound decision-making.
Whether you are an investor looking to sharpen your decision-making skills or simply interested in the psychology of decision-making, The Art of Thinking Clearly offers a wealth of insights that can help you navigate the complexities of the human mind and make more rational and informed choices.
Warren Buffett’s enthusiasm for The Art of Thinking Clearly reflects his continuing belief in the critical importance of clear and rational thinking, particularly in the world of investing.
#1 The Innovators by Walter Isaacson
(Full title: The Innovators: How a Group of Hackers, Geniuses, and Geeks Created the Digital Revolution)
Published in 2014, The Innovators is a comprehensive and enlightening exploration of the history of technological innovation and its profound impact on the modern business landscape.
Warren Buffett’s recommendation of this book reflects his recognition of the pivotal role that technology plays in shaping industries and markets.
The Book
Walter Isaacson is a renowned biographer and author. In this book he takes readers on a fascinating journey through the evolution of technology, from the invention of the first computer and the development of the internet to the emergence of the digital age.
He profiles key figures who have driven these innovations, including visionaries like:
- Ada Lovelace
- Alan Turing
- Bill Gates
- Steve Jobs
Through their stories, Isaacson illuminates the collaborative nature of technological progress, emphasising that innovation often arises from the collective efforts of multiple individuals and teams.
Isaacson’s book not only traces the history of innovation but also delves into the cultural, social, and economic contexts that have influenced technological progress.
It explores the collaborative nature of innovation, highlighting how the exchange of ideas and collaboration among individuals and organizations have been instrumental in driving breakthroughs.
Additionally, “The Innovators” sheds light on the challenges and ethical dilemmas that often accompany technological advancements.
It discusses issues such as:
- privacy
- security
- responsible use of technology
This provides readers with a well-rounded understanding of the complex and versatile world of innovation.
Buffett’s View
Warren Buffett approves The Innovators because it highlights the importance of gaining a broader perspective on the ever-evolving business landscape.
While warren buffett is primarily known for his value investing approach, which focuses on traditional industries and businesses, he recognises the significance of understanding the impact of technology on various sectors of the economy.
Technological advancements can disrupt established business models, create new opportunities, and reshape entire industries, making it essential for investors to stay informed about these trends.
Why The Innovators is #1
The book serves as a reminder of the importance of staying informed about the ever-changing business landscape, even for investors who primarily focus on traditional industries.
Whether you are an investor, entrepreneur, or simply interested in the history of technology, this inclusion among Warren Buffett books for 2024 offers a captivating and informative journey through the world of innovation and its profound influence on our lives and the business world.
In the modern era, technology and innovation play a significant role in the business world.
With cryptocurrencies and blockchain technology coming into greater world importance in 2024, understanding these technologies is crucial for all investors moving forward.
As Warren Buffett has often emphasised, continual reading and learning is what has got him to where he is today – one of the world’s greatest living investors.
Find out more in this insightful video.
