Warren Buffett spends a large part of his day reading. I believe that reading is one of the best ways to try to gain an advantage as an investor, because not everyone has the patience to delve into a book, review and learn something new. That’s why it would be great to hear recommendations for good investing books.
Here are some that I have found useful.
Pat Dorsey – The Little Book That Builds Wealth: The Knockout Formula for Finding Great Investments. Excellent book to learn competitive advantages and how to seek them.
Charlie Munger – The Complete Investor (author Tren Griffin). Brilliant book to with lot of anecdotes how to think wiser. Easiest way is to try not to be too smart and avoid stupidity.
Howard Marks – The Most Important Thing. A large part of the lessons in the book touch on market psychology and take the investor to the market events of past decades.
James Montier – The Little Book of Behavioral Investing: How Not to Be Your Own Worst Enemy. The investor’s chief problem and even his worst enemy, is likely to be himself, Benjamin Graham wrote a long time ago. James Montier book show why and how tp try control your emotions.
I think I´m closing in on around 100-120 read books about investing. After a while you can see that certain themes and topics are starting to repeat themselves, and you´ll get more picky about what to pick up and read. Lately I´ve devoted more time to read letters to shareholders. The classics are obviously Nick Sleeps and Berkshire Hathaways annual letters, but some less known are Terry Smiths Fundsmith´s annual letters and Semper Augustus client letters by Christopher Bloomstran.
When talking about books, a few really stands out in my mind.
The first one is written by Gautam Baid and is called the Joys of Compounding.
This book puts together the most essential about the mindset you need whether you´re about to compound knowledge, money or skillsets. It´s more than just and investing book, but it has good focus on qualities you´ll need for becoming a good value investor.
You can listen to Clay Fincks review of the first part of the book on TIP
The second book would be The Outsiders, by William Thorndike. This is one of my all time favorites. It´s such a simple but a really outstanding read. The book analyzes unconventional CEO´s that have made an extraordinary return for their shareholders. The most important skill that´s analyzed is the CEO´s capital allocation skill and why it matters so much. You can listen to an interview with the author by checking out the podcast here below.
As a fairly new investor and not being very proficient in English, some investment books can be slightly challenging even in my native language. However, I would like to read investment books in English because there are so many options available.
Perhaps it’s a bit redundant to ask, but I’ll still ask:
Can you recommend an “easy” investment book for a novice investor that is also available in English?
I´ve recommended Richer, Wiser, Happier by William Green to many new and also more experienced investors. It´s in my opinion an easy read and it contains very valuable lessons about life and investing.