Books Warren Buffett recommended to learn about value investing

A couple of years in the past at a dinner, Trey Lockerbie, founder and CEO of kombucha firm Better Booch, met billionaire Warren Buffett. He took the chance to ask him a couple of questions about investing, Lockerbie mentioned on "The Good Life" podcast with Sean Murray on Dec. 14.

Lockerbie, who was on the time an avid choices dealer (a extra dangerous technique of investing during which a dealer can wager on which approach the market will swing), requested Buffett whether or not books by Benjamin Graham, who was Buffett's mentor, had been considerably outdated. Graham wrote "Security Analysis" in 1934 and "Intelligent Investor" in 1949.

Buffett — broadly thought to be the very best investor alive — has used the identical technique of value investing taught by Graham for many years. So Buffett instructed that Lockerbie reread Graham's books and concentrate on the chapters about the psychology of investing, Lockerbie mentioned.

In addition, Lockerbie informed "The Good Life," Buffett recommended he learn two books by the late economics commentator George Goodman, who wrote beneath the pen identify "Adam Smith."

Here are the books Lockerbie mentioned Buffett recommended.

Books by Graham

"Security Analysis"

Written by Columbia Business School professors Graham, the daddy of value investing, and David Dodd, "Security Analysis" highlights the idea of value investing, or shopping for shares and holding them for a protracted time frame.

The e book had a huge impact on Buffett – actually, after he came upon Graham and Dodd taught at Columbia University, Buffett contacted Dodd and requested to be admitted for courses there.

"I said, 'Dear Professor Dodd. I thought you guys were dead, but now that I found out that you're alive and teaching at Columbia, I would really like to come,'" Buffett mentioned in HBO's "Becoming Warren Buffett." (Buffett acquired his Master's there.)

"Intelligent Investor"

Buffett has recommended "Intelligent Investor" numerous instances.

After all, "my financial life changed with that purchase [of 'Intelligent Investor']," Buffett wrote in his 2013 letter to Berkshire Hathaway shareholders. "Ben's ideas were explained logically in elegant, easy-to-understand prose." 

The e book affords a deep dive into the method of value investing.

"Of all the investments I ever made, buying Ben's book was the best (except for my purchase of two marriage licenses)," Buffett mentioned in 2013.

Books by Goodman (aka Smith)

"The Money Game"

"[Goodman, aka Smith], especially in 'The Money Game,' was incredibly insightful, and he knew how to make the prose sing as well," Buffett informed The Wall Street Journal in 2014.

In "The Money Game," which was revealed in 1968, Goodman argued that the inventory market must be considered as a sport and wrote of the frenzy of Wall Street within the '60s for instance.

"He knew how to put his finger on things that nobody had identified before. [Goodman] stuck to the facts, but he made them a helluva lot more interesting," Buffett mentioned.


Published in 1972, "Supermoney" highlights the inventory market within the '70s and even profiles Buffett himself.

"In this book, Adam Smith says I like baseball metaphors. He's right," Buffett wrote in a ahead to the e book.

"So I will just describe this book as the equivalent of the performance of [New York Yankees'] Don Larsen on October 8, 1956. For the uninitiated, that was the day he pitched the only perfect game in World Series history."

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