“I always knew I was going to be rich. I don’t think I ever doubted it for a minute.”-Warren Buffett
Warren Buffett is the world’s top business investor and philanthropist. He is the CEO, primary shareholder and Chairman of Berkshire Hathaway, and is ranked amongst the world’s wealthiest people. Known as the wizard of Omaha, he is well known for his value investing philosophy. If you want to invest like Warren Buffett, there are several books, which have inspired and therefore, have been recommended by this influential man -setting you on the right path of investing enlightenment. So here is a brief overview of the most influential books which will set you on the right path to buying stock like Warren Buffett.
The Intelligent Investor by Benjamin Graham
This book was written by the second most influential man in Warren Buffett’s life right after his father. Benjamin Graham, also known as the father of value investing was the mentor of Buffett grounding him with the basic intellectual framework. The book was published in 1949 and since then it has sold millions of copies worldwide. This book, which has been praised by Warren Buffett as the best book ever to be written, focuses not on profit maximization but on loss minimization. The Intelligent Investor is not a book for the day traders or speculators but for true investors. The best part about this book is that it is suitable for laymen giving guidance in adoption and execution of an investment policy.
The Little Book of Common Sense: The Only Way to Guarantee Your Fair Share of Stock Market Returns by John C Bogle
This book gives the most practical advice complete with the expert evaluations, showing you that investing is all about common sense. This book will not only change your investment attitude, but will also be your bible that guides you towards the successful path, regarding how to add to your portfolio, using the strategies of certified investment.
Take on the Street: What Wall Street and Corporate America Don’t Want You to Know by Arthur Levitt.
Arthur Levitt was the longest serving chairman of the United States Securities and Exchange Commission, supervising the dotcom boom days of the 90’s stock market. In this book, Arthur Levitt reveals the tactics of corporate America for hoarding the billions poured into mutual funds as well as stocks by working Americans. Levitt also reveals how to invest into the stock market, and also in the mutual funds intelligently. He focuses his advice towards the individual small investors and guiding them about the exploitation detection tips, evaluating the press releases and the annual reports, and also discussing about the tactics worth adopting, so as to benefit more from the trustworthy sources.
The Theory of Investment Value by John Burr Williams
It was 1938, when the first edition of this book came into the market. Today it is still considered to be one of the most trustworthy books, which discusses the financial asset evaluation. Burr Williams has combined concepts with actual experiences that took place in the investment world, giving verifiable insights. The breakthrough discovery made by Williams was to give an educated guess that provides a fundamental value called the Dividend Discount Model; this value is still subject to question in the market’s institutional sectors by the professional investors.
Paths to Wealth through common stocks By Philip Fisher
Designed to help those investors who have management queries and issues, this book contains one innovative concept after the other -aiming to lend a hand to every business that needs honest advice regarding investments. In this book, Philip Fisher reveals why worthwhile profits that generate from ownership of common stocks reduce the risk while increasing profits. Many of his ideas in this book are based on orthodox strategies of investment, which are still able to acquire remarkable returns – as a result they are of the utmost relevance in today’s market.
Security Analysis: Principle and Technique by Ben Graham and Dave Dodd
For nearly 70 years, Benjamin Graham’s theories recognized as the groundbreaking ones, have inspired and influenced investors. The Security Analysis, publication of 1934, is no less than a bible for both professional and potential investors. The second edition, from 1940, has been Graham’s Warren Buffett’s most inspirational book.
Common Stocks and Uncommon Profits by Philip A Fisher
Contemporary finance professionals such as Warren Buffett use Philip A Fisher’s investment principles as he is regarded as the pioneer of modern investment theory. This book identifies the value of the maximum length growth stocks as compared to the small duration stocks, and their impacts on the initial foundation of any business/investment. Published in 1958, this investment classic is considered as the foundation for many of today’s investment philosophy and money forum.
Where Are the Customers’ Yachts? Or A Good Hard Look at Wall Street by Fred Schwed, Jr
This book is known to be amusing and engaging, as it reveals the Wall Street’s hypocrisy and foolishness. The subject of discussion represents a story of a guest in New York who naively asks after admiring the yachts of brokers and bankers, where the yachts of the customers were? This shows that the customers were unable to afford yachts, although they were in constant interaction with their investment advisors, i.e, the brokers and the bankers. This book gives all the wise advice and promises along with a realistic outlook of the investment world; here the customers lose everything but their brokers acquire their targets, hence it helps investors get an insight into the tough world of Wall Street.
The Interpretation of Financial statements, by Benjamin Graham co-written with Spencer Meredith
Many investors are laymen and are not accountants or financial analysts. If they want to have a look at the balance sheet, they need to understand the financial terms and the roles they play in company analysis. Instead of doing a short course on company accounting, the best way is to start reading this classic book on The Interpretation of Financial statements.
In this book, Graham perfectly guides you through the terms used in a company’s balance sheet and discusses what importance they hold in determining the financial position of a company. He demystifies the complexity of concepts such as maintenance and depreciation, ‘liquidating value’, and net tangible assets.
Author is the founder of the free online education site, Warren Buffett Book, which teaches students how to invest like Buffett. The site requires no sign-up or fee and it offers over 10 hours of video based lessons that teach students step by step methods to invest like Warren Buffett.
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