Books Warren Buffett beneficial researching worth investing
Several years ago, Trey Lockerbie, founder and CEO of the kombucha company Better Booch, met billionaire Warren Buffett at a dinner. He took the opportunity to ask him a few questions about investing, Lockerbie said on Dec. 14 on The Good Life podcast with Sean Murray.
Lockerbie, who was an avid options trader at the time (a riskier investment method where a trader can bet on which direction the market will swing), asked Buffett if books by Benjamin Graham, Buffett’s mentor, were a little dated. Graham wrote “Security Analysis” in 1934 and “Intelligent Investor” in 1949.
Buffett – widely regarded as the finest investor alive – has followed the same strategy of value investing that Graham taught for decades. So Buffett suggested that Lockerbie reread Graham’s books and focus on the chapters on the psychology of investing, Lockerbie said.
Lockerbie also said of “The Good Life” Buffett recommended that he read two books by the late economic commentator George Goodman, who wrote under the pseudonym “Adam Smith”.
Here are the books Lockerbie Buffett recommended.
“Security Analysis” was written by Columbia Business School professors Graham, the father of value investing, and David Dodd, and it shows the basics of value investing, or buying and holding stocks over time.
The book made a huge impact on Buffett – after finding out that Graham and Dodd were teaching at Columbia University, Buffett contacted Dodd asking for admission to teach there.
“I said, ‘Dear Professor Dodd. I thought you were dead, but now that I’ve found out that you live and teach in Columbia, I’d really love to come,'” Buffett said on HBO’s Becoming Warren Buffett. “” (Buffett has his master there.)
Buffett has recommended “Intelligent Investor” countless times.
After all, “my financial life changed with this purchase [of ‘Intelligent Investor’]”Wrote Buffett in his 2013 letter to Berkshire Hathaway shareholders.” Ben’s ideas were explained logically in elegant, easy-to-understand prose. ”
The book offers a deep insight into the process of value investing.
“Of all the investments I’ve ever made, the purchase of Ben’s book was the best (other than my purchase of two marriage certificates),” Buffett said in 2013.
Books by Goodman (aka Smith)
“The Money Game”
“”[Goodman, aka Smith]He was incredibly insightful in ‘The Money Game’ in particular, and he also knew how to make prose sing, “Buffett told the Wall Street Journal in 2014.
In “The Money Game,” published in 1968, Goodman argued that the stock market should be viewed as a game and wrote of the Wall Street frenzy of the 1960s as an example.
“He knew how to put fingers on things that no one had identified before. [Goodman] I stuck to the facts, but he made them a lot more interesting, “Buffett said.
“Supermoney” was published in 1972 and sheds light on the stock market in the 1970s and even profiles Buffett himself.
“In this book, Adam Smith says I like baseball metaphors. He’s right,” Buffett wrote in a foreword to the book.
“So I’m just going to describe this book as the equivalent of the performance of [New York Yankees’] Don Larsen on October 8, 1956. For the uninitiated, this was the day he pitched the only perfect game in World Series history. “
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