WHAT INVESTMENT BOOKS DOES WARREN BUFFET RECOMMEND?

Recently, it is reported that super-billionaire Warren Buffett has returned to the top 5 richest people on the planet amid a sharp drop in technology stocks. Now, Buffett's fortune has increased 7.2%, or $116.7 billion, as stock of Berkshire Hathaway rose.

Here are four investment books that Warren Buffet recommends to read, as revealed by Trey Lockerbie.

1. Security Analysis - Benjamin Graham, David Dodd

This is a book by Columbia University’s professor Benjamin Graham and David Dodd first published in 1934. Then, its second edition came out in 1940.  The 6th edition builds on the content of the 1940 edition and added 200 pages of vivid and realistic essays drafted by excellent writers.

What investment books does Warren Buffet recommend? / ph: Amazon 

The book "Security Analysis" consists of 8 chapters which is known as "the bible of value investing".  The authors have provided valuable lessons in value investing which help investors to gain sanity and choose wisely in the face of erratic volatility.  It is worth to mention that, even in the 21st century, this book is still a guide for the stock market and the tumultuous economy.

The book surprised and impressed Warren Buffet so much that after he knew that Benjamin Graham and David Dodd taught at Columbia University, he contacted and expressed his desire to join those classes.

Buffett said that reading "Security Analysis" was one of the luckiest moments of his life.  Because the book helped to shape his knowledge of investing and became "the investment map that he followed for 57 years".

2. The Intelligent Investor - Benjamin Graham

Buffett has repeatedly shared his feelings when reading Benjamin's book: "Of all the investments I've ever made, buying Benjamin's book is the best, except for signing two marriage certificates."  Or "After all, my financial career changed completely after I bought the book 'Intelligent Investor', the 90-year-old billionaire wrote in his letter sending to Berkshire Hathaway’s shareholders in 2013.

Benjamin Graham is known as the greatest investment advisor in the twentieth century, he has taught and inspired many people around the world.  Therefore, right from its release in 1949, the book "Intelligent Investor" has really caused a storm. His valuable experiences on the philosophy of value investing have helped investors avoid mistakes.  At the same time, they are equipped to develop long-term strategies.

3. The Money Game - Adam Smith

In his book "The Money Game," Goodman argues that the stock market should be viewed as a game, and the frenzy of 1960s Wall Street is an example of that.

In this book, Buffett says, Goodman addresses things no one has ever noticed before with his signature engaging, interesting, and humorous style.

4. Supermoney - Adam Smith

Supermoney writes about the stock market of the 1970s, providing a comprehensive look at institutions, professionals and the nature of financial markets. Particularly, the book also depicts the portrait of Warren Buffett.

Buffett says no one has written about money management with such insight, humorous and wisdom as Adam Smith.

It can be seen that, no matter how successful you are or like Buffett who has become one of the 5 richest billionaires on the planet, cultivating knowledge is extremely important.  In the early stages of his career, he read about 600-1,000 pages of books every day.  Even now, at the age of 91, Warren Buffett still maintains the habit of reading and spends about 80% of his time every day on reading.  For him, reading is a way to acquire knowledge and this knowledge will increase every day like compound interest.

WHAT INVESTMENT BOOKS DOES WARREN BUFFET RECOMMEND?