5 Books that Helped Warren Buffet Become a Billionaire

5 Books that Helped Warren Buffet Become a Billionaire

American business magnate, investor, and philanthropist Warren Buffett’s success cannot be attributed to chance alone. He owes his achievements to wise investment choices that he learnt by playing the long game and by accumulating a vast amount of knowledge. Every Buffett fan knows that he spends as much as six hours a day reading books. It may be a daunting prospect for most of us. Yet, if you’re up to the task, the Oracle of Omaha advises that we “read 500 pages every day.” According to him, knowledge works just like compound interest does- it builds up over time. So, if you’re inspired by Warren Buffet’s accomplishments, you’d want to know which books shaped his thoughts and actions.  Here are the five personal favourites of the chairman and CEO of Berkshire Hathaway-

  1. The Intelligent Investor by Benjamin Graham

The Intelligent Investor – The Definitive Book on Value Investing was first published by Benjamin Graham in 1949. This book has been acknowledged globally as the greatest investment advisor of the twentieth century and has taught and inspired people worldwide. Here’s what Buffett had to say about the book in the preface to the book’s fourth edition-“I read the first edition of this book early in 1950 when I was nineteen. I thought then that it was by far the best book about investing ever written. I still think it is.” He points out that sound investment requires no more than the proper intellectual framework for decision-making. He concludes that The Intelligent Investor “precisely and clearly prescribes the proper framework.”

  1. Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger edited by Peter D. Kaufman

This book offers a treasure trove of financial wisdom in the form of speeches, stories, lessons, and essays written by Charlie Munger, Buffett’s long time business partner and vice president of Berkshire. Edited by Peter Kaufman, this monumental work is an encyclopaedia of information on what it takes to be successful and to achieve greatness. Buffett has been known to recommend this book at nearly every annual shareholder’s meeting. The writing style is unconventional and the ideas are not listed in an order but just touched upon lightly, with pictures given alongside. This is in line with Munger’s idea to “make the mind reach out to the idea” thereby increasing the idea’s retentiveness in memory. 

  1. One Thousand Ways to Make $1000 by F. C. Minaker

This is the book that Warren Buffett’s biographers credit with shaping the legendary investor’s business acumen and giving him his trademark appreciation of compound interest. It gives specific examples of individuals who made enough money to start their own businesses by starting with as little as $5, and it encourages the reader to do the same. It is full of inventive ideas on how to make money through excellent salesmanship, hard work, and resourcefulness. It is not just a  classic business book but also a fascinating portrait of determined entrepreneurship in Depression-era America.

  1. Business Adventures by John Brooks

Business Adventures is a book that features interviews with leaders in the field of entrepreneurship and creative leadership as well as go-to-market strategies and marketing approaches used by some of the most successful business owners in the world today.  Bill Gates has famously declared this book as “The Best Business Book I’ve ever read”. The book features business coaching, technology tips, golden boy stories, and insider information on how to get things done in business. You’ll witness key decisions made by CEOs as they reshape their companies to better adapt to today’s consumers and competitors. 

  1. Common Stocks and Uncommon Profits by Philip A. Fisher

Buffett has often been quoted saying, “I am an eager reader of whatever Phil has to say, and I recommend him to you.” When Warren Buffett picked up this book by Philip Fisher, he was already a die-hard fan of the Stanford Graduate School drop-out and the way he created success for himself. Not only did Fisher evaluate a company’s financial statements when approaching his own success, but he created a more well-rounded valuation of a company based on the company’s management and potential growth. His writings have helped to revolutionize the stock market in a way that allows people to better understand growth patterns and potential business blunders. 

These books will help you peek into the mind of this mogul. Having owed his legacy to the power of reading, Buffet has time and again recommended that every aspiring entrepreneur read these five books. We too believe that reading consistently can equip us with the right knowledge to scale new heights.

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