Wrote Buffett once said, “Read 500 pages every day. That’s how knowledge works. It builds up, like compound interest.”
He has reportedly been known to spend up as much as six hours of his day reading. So, what does he recommend? This article shows 4 books he’s recommended in the past. Here we go.
1. Tap Dancing to Work: Warren Buffett on Practically Everything
In his 2012 Berkshire Hathaway annual letter, Buffett recommended the book, Tap Dancing to Work by Carol Loomis. The book comprises many original pieces authored by Buffett himself as well as Loomis’s own commentary to give a broad overview of his investment strategies, thinking on management, philanthropy, public policy, and more.
2. The Great Crash of 1929
During the 2020 Berkshire Hathaway annual meeting, Buffett gave shareholders a history lesson about uncertain times, and recommended the book, The Great Crash of 1929 by John Kenneth Galbraith. The book details what led to the 1929 financial collapse, and says what we can learn from it to navigate the present times.
3. The Intelligent Investor
Buffett wrote the preface to the 4th edition of Benjamin Graham’s book, The Intelligent Investor. He says, “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.”
4. The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
In his 2012 annual letter, Buffett praised William Thorndike’s book, The Outsiders by saying, “This is an outstanding book about CEOs who excelled at capital allocation. It has an insightful chapter on our director, Tom Murphy, overall the best business manager I’ve ever met.” The book documents the success of eight extraordinary CEOs and shows an alternative model for leading a company to extraordinary returns.