For a man who turned 93 in August 2023, Warren Buffett still gets around. Drop by the financial section of any bookstore, and you are likely to see his face at least once and his name several more times. Buffett has never written a book of his own, but he has shared his thoughts for decades in interviews and his famous Berkshire Hathaway (BRK.A, BRK.B) shareholder letters. These books draw on that material and other sources to probe the secrets of the legendary investor's success and how the rest of us might hope to learn from them.
Key Takeaways
- While Warren Buffett himself has never authored a book, many books have been written about his life, his investment strategies, and his philosophies.
- Some books about Buffett focus more on his life and achievements, while others focus more on replicating his investment style.
- Gaining insight into a great investor like Warren Buffett can be useful to both new and advanced investors.
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1. "The Warren Buffett Way,"by Robert G. Hagstrom
If you're mostly looking for investing lessons drawn from the impressive record Buffett has compiled over the years, Hagstrom's book may be all you need. "The Warren Buffett Way," now in a third edition released in 2013, lays out the principles Buffett follows in investingand walks the reader through them with case studies from Buffett's own investment portfolio.
These include well-known rules like buying businesses you understand and ignoring Mr. Market (an imaginary, emotional investor devised byBenjamin Graham, Buffett's mentor), along with many others. It is a great book for investors just starting out, and it continues to be a good read even when you think you know what you're doing.
2. "The Essays of Warren Buffett: Lessons for Corporate America," by Warren Buffett and Lawrence Cunningham
While Buffett has never written a book himself, his decades of shareholder letters add up to the equivalent of several books—though, if read back-to-back, they suffer for the lack of an editor. Lawrence Cunningham solved that issue, going through the letters and organizing Buffett's thoughts around topics.
Cunningham imposed something of an editorial voice—possibly a necessary step to tie everything together—but the content is Buffett's, and so is the investing philosophy. Now in an eighth edition, released in 2023, "The Essays of Warren Buffett: Lessons for Corporate America" takes on a larger scope than "The Warren Buffett Way" and isn't solely aimed at the individual investor, although you will still learn a lot about investing.
Warren Buffett's annual shareholder letters from 1977 on can be found on the Berkshire Hathaway website.
3. "The Warren Buffett CEO: Secrets From the Berkshire Hathaway Managers," by Robert P. Miles
"The Warren Buffett CEO," from 2003, is less about Buffett as an investor and more about him as a leader and manager. The book describes how Buffett selects the CEOs for Berkshire's many subsidiaries and how he oversees them. It tells that story through the Berkshire executives themselves.
"The Warren Buffett CEO" isn't an investment manual, but you will learn a lot about great companies and great management, two things every investor needs to keep in mind—not to mention aspiring managers and business professionals. More important, the book shows a side of Warren Buffett that is often overshadowed by his portfolio performance. Buffett is a great manager and a great investor.
4. "Dear Mr. Buffett: What an Investor Learns 1,269 Miles from Wall Street," by Janet Tavakoli
This is a Buffett book that really isn't about Buffett, although he is one of the main characters. Janet Tavakoli is a structured finance expert whose previous books focus on collateralized debt obligations (CDO). She met with Buffett and, following the financial mess of 2009, started to put greater value on Buffett's philosophy and his value investing methods.
This book can help you see Buffett differently, through someone else's eyes. It is a pure pleasure read, though some of the insights will be unsettling for investors, particularly the systematic abuses that triggered the subprime mortgage meltdown, which in turn led to the onset of the Great Recession.
5. "Buffett: Making of an American Capitalist," by Roger Lowenstein
If you've read through the Buffett canon and still feel you haven't absorbed enough, Buffett biographiesprovide insightful looks at the life and times of the Oracle of Omaha. "Buffett, Making of an American Capitalist" was first published in 1995, though a more recent audiobook version features some revisions and updates by author Lowenstein, a veteran reporter at The Wall Street Journal.
6. "The Snowball: Warren Buffett and the Business of Life," by Alice Schroeder
"The Snowball," Schroeder's massive book (over 900 pages), was first published in 2008 and written with Buffett's cooperation.
Neither this biography nor "Buffett: Making of an American Capitalist" may add much to your knowledge of Buffett's investment strategies (other than to emphasize that his approach evolved over time), but both do have a lot to offer about the man himself, his life, and his experiences.
What Books Does Warren Buffett Himself Recommend?
Warren Buffett is by all accounts a voracious reader and he has recommended many books over the years in his annual letter and elsewhere. One that he has often credited with playing a major role in his own success is "The Intelligent Investor" by Benjamin Graham, a 1949 classic that remains in print to this day.
What Is Warren Buffett's Investment Philosophy?
Buffett follows the Benjamin Graham school of value investing, seeking to buy securities whose low prices do not reflect their intrinsic worth. Buffett takes a holistic view of the companies he is considering, looking beyond the volatility of the stock market to consider the company's fundamentals, including its performance, debt, and profit margins. Critically, Buffett's strategy hinges on identifying companies that are undervalued.
What Are Some Lessons From Warren Buffett's Career?
Buffett's success has inspired investors around the world to follow his strategies. One main takeaway from Buffett's career is the importance of conducting in-depth research to identify quality companies and then investing in them at bargain prices. While this basic idea has made Buffett one of the world's wealthiest people, there have been hiccups along the way. Mistakes made by Buffett over the course of his career—including occasionally buying at the wrong price and confusing revenue growth with a successful business—also offer useful lessons for investors at all levels.
Where Can You Find Other Good Books About Investing?
Since investing often plays a key role in driving financial success, it is no surprise that there is a huge variety of books on the topic. You can find plenty of examples at your local bookstore or library, as well as online. Investopedia has also compiled some recommendations, including the best books on investing, best books for young investors, and best books on a variety of financial topics.
The Bottom Line
None of these books may be as satisfying—and financially rewarding—as owning Berkshire Hathaway stock, Class A shares of which were recently selling at over $546,000 apiece in September 2023. But there's a lot of wisdom and enjoyment to be found in their pages all the same. Any of them could make a great gift for the aspiring investor in your life or a valuable addition to your own library of investment-related titles.
