The Best Books on Investing and Warren Buffett

by John M. Longo, PhD, CFA
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6 books
New and experienced investors alike are always looking for an edge. A good starting point in searching for an edge may be to analyze the strategies of successful traders and investors in concert with one’s skills, resources, and personal experiences. Extending this logic further points investors towards great (short-term) traders, and long-term successful investors such as Warren Buffett and Peter Lynch. This book list will aid investors seeking to traverse this path, with the ultimate goal of improved investment performance.
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Buffett

The Making of an American Capitalist
Roger Lowenstein, 2013
Books about Warren Buffett have turned into a cottage industry. This was one of the first books on Buffett giving insight both into his personal background and investment strategy. It is filled with humorous anecdotes and clearly establishes Buffett’s business acumen at a very early age.

Buffettology

The Previously Unexplained Techniques that Have Made Warren Buffett the World's Most Famous Investor
Mary Buffett, David Clark, 1997
Mary Buffett was once married to one of Warren Buffett’s sons and David Clark is a Chartered Financial Analyst (CFA) who grew up with Buffett’s children. Hence, they had a unique vantage point in writing their numerous books on Buffett and his investment strategies. This particular book that I am recommending is their first book and the best, in my opinion. Buffettology provides more detail on Buffett’s investment strategies than most other books on the Oracle of Omaha.

The Intelligent Investor

A Book of Practical Counsel
Benjamin Graham, 1985
Benjamin Graham is an investment legend and is considered the “Father of Value Investing.” He was a mentor to Warren Buffett, having served as his professor and employer during the early part of Buffett’s career. Graham was a highly regarded professional investor and faculty member at Columbia University. His first book, Security Analysis, co-authored with Columbia colleague David Dodd, was derived from the notes he used in his Columbia classes. The Intelligent Investor was written with the “common investor” mostly in mind and is an easier read. Buffett views it as the greatest book ever written on investing. It would be hard to find a stronger endorsement.

Market Wizards, Updated

Interviews with Top Traders
Jack D. Schwager, 2012
As suggested by the title, the book consists of a series of interviews with highly successful traders. In addition to being an excellent interviewer, Schwager has a talent for succinctly summarizing each chapter. For those interested in active investment strategies and with a shorter-term focus, this book is for you. The interview style of the book makes it an easy read. If your interest is piqued by this book, there are a number of sequels that are also quite good.

One Up On Wall Street

How To Use What You Already Know To Make Money In The Market
Peter Lynch, 2000
Peter Lynch was once the most successful mutual fund manager in the U.S. and best known for managing Fidelity’s iconic Magellan Fund. The subtitle of the book was one reason it became a bestseller, in addition to Lynch’s obvious investment prowess. Lynch provides hope to investors on Main Street that they too can achieve excellent investment performance. In the book, Lynch talks about coming across investments, such as one in Dunkin’ Donuts, by first being a consumer of the product or service. Lynch believes the small investor often comes across interesting companies years before they are household names on Wall Street, providing a window to achieving investment success and without the constraint of moving prices once a position is established.

Competitive Strategy

Techniques for Analyzing Industries and Competitors : with a New Introduction
Michael E. Porter, 1998
Michael Porter is a management and strategy professor at Harvard Business School. This book is not an easy read, but still quite important for serious investors. One of the most challenging aspects for investors is to understand how industries change over time and to understand the “moat” or competitive advantage a company may have over its peers. For example, when Apple pioneered the iPhone smartphone, it eventually resulted in devastating results for the main cellphone competitors at the time – Nokia, Motorola, and Blackberry. Porter’s book provides an effective framework of five forces that determine industry structure, performance, and profitability.