Warren Buffett recommends his 12 favorite books. A brief description of each one will give you insight into the genres that resonate with the businessman and might even introduce you to a new literary perspective. Let’s explore these valuable titles!
1. The Intelligent Investor by Benjamin Graham
The Intelligent Investor is a book that inspires people to invest. Its author, Benjamin Graham—known as the “father of value investing”—teaches strategies that protect novice and experienced investors from major mistakes, fostering a passion for investing. Jason Zweig and Warren Buffett contribute as co-authors, drawing connections between theories and explaining how to apply Graham’s advice. For more details, check out our summary of The Intelligent Investor.
2. The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success by William N. Thorndike
The Outsiders analyzes the actions of eight unconventional CEOs. Author William N. Thorndike examines the non-traditional strategies these leaders used to achieve remarkable results. Their management styles serve as valuable models for both new and seasoned executives. In The Outsiders summary, you’ll find key ideas and insights from the book.
3. The Smartest Guys in the Room: The Amazing Rise and Scandalous Fall of Enron by Bethany McLean, Peter Elkind
The book The Smartest Guys in the Room tells the story of the rise and fall of Enron, a former American energy company. Authors Bethany McLean and Peter Elkind vividly describe the company’s origins, growth, and ultimate collapse. Readers will learn about key players like Ken Lay, Jeff Skilling, Andy Fastow, Cliff Baxter, and Rebecca Mark. The summary of The Smartest Guys in the Room reveals the harsh realities of American business.
4. Shoe Dog by Phil Knight
Shoe Dog is the story of how the globally recognized shoe company Nike came to be, as told by its founder, Phil Knight. This memoir isn't just a business manual; it’s a personal account of the struggles and triumphs of building a business. Knight’s straightforward storytelling resonates with readers, inviting empathy toward his journey. In the Shoe Dog book summary, you’ll discover why control, purpose, confidence, and leadership are crucial for starting and running a business. Grab your Nikes, head to the park, and enjoy this inspiring read!
5. Where Are the Customers’ Yachts? Or a Good Hard Look at Wall Street by Fred Schwed
As a classic investment book, Where Are the Customers’ Yachts? remains relevant today. Author Fred Schwed humorously explains how emotions can be the biggest obstacle for investors and highlights other key issues. With wit and sarcasm, he exposes the hypocrisy of Wall Street, which persists despite the passage of time.
6. Jack: Straight From the Gut by Jack Welch
Jack: Straight From the Gut provides top management lessons based on General Electric's (GE) experience. In the book, Jack Welch emphasizes the importance of people in driving a company's success. He shares his strategies for managing business operations and offers real-life examples from his career. Readers will learn about the core strategies that made GE what it is today—integrity, corporate-community relationships, organizational intelligence, communication, and more.
7. Poor Charlie’s Almanack by Charlie Munger
Poor Charlie’s Almanack is a collection of speeches and writings by Charlie Munger, the book's author. Munger, a close friend and business partner of Warren Buffett at Berkshire Hathaway, shares insights into education, decision-making, and the art of becoming a successful investor. Both Charlie and Warren valued continuous learning, as reflected in the clear and powerful speeches compiled in this book and their remarkable business success. Charlie Munger Poor Charlie's Almanack is a perfect book for easy and useful reading.
8. Tap Dancing to Work: Warren Buffett on Practically Everything by Carol J. Loomis
Tap Dancing to Work book presents articles and essays by Carol J. Loomis, senior editor at Fortune, alongside contributions from Warren Buffett. This book covers nearly 50 years of Buffett’s career, revealing his investment strategies, business philosophy, and management methods. Some key themes include long-term value investing, philanthropy, market efficiency, and risk management. If you’re curious about Buffett’s biography and professional journey, this is a book for you.
9. 40 Chances: Finding Hope in a Hungry World by Howard G. Buffett
40 Chances book is a collection of 40 stories and lessons from the life of Howard G. Buffett, Warren Buffett’s son. Warren also contributed a foreword to this book. It focuses on the global fight against hunger, an issue that affects over a billion people. Howard encourages readers to take meaningful action to make a difference. This book is a powerful call to those who want to help alleviate hunger and improve lives.
10. Dream Big by Cristiane Correa
Dream Big chronicles 40 years of the growth and achievements of three entrepreneurs—Jorge Paulo Lemann, Marcel Telles, and Beto Sicupira. Author Cristiane Correa describes how they built the largest empire in Brazilian capitalism's history. Their management philosophy is rooted in meritocracy, simplicity, and relentless cost-cutting. Since Warren Buffett and Jorge Paulo Lemann are business partners, their shared success makes the Dream Big book a worthwhile read for anyone seeking business inspiration.
11. The Little Book of Common Sense Investing by John C. Bogle
The Little Book of Common Sense Investing teaches readers how to approach the stock market wisely. The author, investor John C. Bogle, shares his tips for successful investing and lays out simple strategies for building wealth. You'll gain a better understanding of index funds, learn to keep costs low, and discover how to join the ranks of successful investors.
12. Business Adventures: Twelve Classic Tales from the World of Wall Street by John Brooks
Business Adventures book explores the strengths and weaknesses of leaders in various business scenarios. Author John Brooks offers insights into corporate life, with stories like the rise of Xerox, the scandal at General Electric, and the Texas Gulf Sulphur incident. Both Bill Gates and Warren Buffett credit this book with teaching them essential management lessons, making it a powerful motivator. It highlights that running a business is indeed an adventure.
It’s hard to choose a single Warren Buffett’s favorite book, but spending time with any of these reads will undoubtedly be beneficial. Each book provides valuable lessons, and the impact they’ve had on investors and business leaders speaks for itself. Start with the one that piques your interest the most, and keep expanding your knowledge through reading!
