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5 Finance Books From Warren Buffett’s Bookshelf

5 Finance Books From Warren Buffett’s Bookshelf

If you’re into investing, you know how successful Warren Buffett is. The investing genius is now worth an estimated $65 billion, and his Berkshire Hathaway is an international conglomeration with investments in nearly any industry you can think of. A Buffett investment can send shocks running throughout the investing world, which can be demonstrated by Berkshire Hathaway’s surprising decision to invest in Apple Inc.

How has Buffett come so far? Some of it is just a knack for business which he has shown since he was a young boy. But a huge part of Buffet’s success is his voracious appetite for books. When a student asked Buffett how he could prepare for an investing career, Buffet told him to read 500 pages every day. Some of it is the standard stock information, but much of Buffet’s reading has taken the form of financial and investing books.

A total Buffet book list could last for pages, but here are five books which have played a key role in Buffet’s life and what an ordinary investor could take away from them.

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1. The Intelligent Investor by Benjamin Graham

Graham, an investor and educator at the Columbia Business School, had a huge influence on Buffett’s life. Buffett enrolled in Columbia Business School because Graham taught there, and a roommate observed that Buffett treated Graham’s book “like a god.”

The Intelligent Investor’s key lesson is about the importance of staying calm in the volatile world of investing, a trait which Buffett believes is more important than inside information or mere intelligence. If you give in to the mob and buy what everyone else buys, you will end up in trouble. You need a solid, intellectually justifiable reason to jump in on a stock. And never get emotionally caught up in whether your stock does well or not.

2. Common Stocks and Uncommon Profits by Philip A. Fisher

Fisher may not be as well known as Graham, and he may not have had an as big influence on Buffet’s life as Graham. But Buffett still enthusiastically recommends Fisher, stating that he was “an eager reader of whatever Phil has to say.” Fisher’s work is well known for how it values senior management over looking at financial statements.

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In addition, Fisher like Graham also stresses the importance of a strong will and learning to zag when the crowd zigs. Another thing that he points out is that owning a stock is owning a part of the company – and if you cannot understand the company’s business, you cannot understand the stock you own. This is something which Buffett follows very heavily, as shown by his well-known lack of interest in tech companies.

3. The Outsiders by William Thorndike Jr.

In his 2012 letter to shareholders, Buffett recommended The Outsiders, calling it “an outstanding book about CEOs who excelled at capital allocation.” He also noted how it praised Berkshire Hathaway director Tom Murphy, who Buffett called “the best business manager I’ve ever met.”

The Outsiders has become a prominent hit in the business community, as Thorndike spent years profiling CEOs he viewed as particularly successful. He came to the conclusion that the best CEOs are not necessarily charismatic, but instead are “pragmatic, flexible and opportunistic, frugal and patient.”

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4. Poor Charlie’s Almanack by Peter Kaufman

This book is a collection of speeches and talks by Charles Munger, the vice chairman of Berkshire Hathaway. Buffett has always praised his fellow Omaha boy, calling him, observing that they have always been able to get along despite disagreeing on certain business decisions.

Poor Charlie’s Almanack lists Munger’s investment strategies, along with his emphasis on personal finance models. Munger observes that if you only have one strategy or worldview in investment, you will twist reality to fit that worldview. By constantly having multiple models (and multiple means 80 to 90), you will be able to keep yourself grounded, which is how Munger has helped Buffett when Buffett has had some of his wackier schemes.

5. Business Adventures by John Brooks

In 1991, Bill Gates asked Warren Buffett what his favorite business book was. Buffett recommended Business Adventures without a second thought and the book today is also one of Gates’s favorites.

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Business Adventures was published more than four decades ago, but its stories are just as relevant today. Brooks avoids summing up his stories with neat business lessons, letting the readers draw their own conclusions. But one running theme throughout the book is how executives can get complacent with their own success and fail to innovate.

The story of Xerox, which revolutionized offices in the 60s but failed to adapt to the rise of the computer, is relevant here. Buffett has always stayed on his toes and is willing to try new things, as his recent investment in Apple shows.

As noted above, these are just a few of the books Buffett recommends. Here is an additional list from Business Insider of Buffett-recommended books which can improve your investment abilities.

Featured photo credit: sher xia via flickr.com

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Last Updated on January 15, 2021

7 Ways To Have More Confident Body Language

7 Ways To Have More Confident Body Language

The popular idiomatic saying that “actions speak louder than words” has been around for centuries, but even to this day, most people struggle with at least one area of nonverbal communication. Consequently, many of us aspire to have more confident body language but don’t have the knowledge and tools necessary to change what are largely unconscious behaviors.

Given that others’ perceptions of our competence and confidence are predominantly influenced by what we do with our faces and bodies, it’s important to develop greater self-awareness and consciously practice better posture, stance, eye contact, facial expressions, hand movements, and other aspects of body language.

Posture

First things first: how is your posture? Let’s start with a quick self-assessment of your body.

  • Are your shoulders slumped over or rolled back in an upright posture?
  • When you stand up, do you evenly distribute your weight or lean excessively to one side?
  • Does your natural stance place your feet relatively shoulder-width apart or are your feet and legs close together in a closed-off position?
  • When you sit, does your lower back protrude out in a slumped position or maintain a straight, spine-friendly posture in your seat?

All of these are important considerations to make when evaluating and improving your posture and stance, which will lead to more confident body language over time. If you routinely struggle with maintaining good posture, consider buying a posture trainer/corrector, consulting a chiropractor or physical therapist, stretching daily, and strengthening both your core and back muscles.

Facial Expressions

Are you prone to any of the following in personal or professional settings?

  • Bruxism (tight, clenched jaw or grinding teeth)
  • Frowning and/or furrowing brows
  • Avoiding direct eye contact and/or staring at the ground

If you answered “yes” to any of these, then let’s start by examining various ways in which you can project confident body language through your facial expressions.

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1. Understand How Others Perceive Your Facial Expressions

A December 2020 study by UC Berkeley and Google researchers utilized a deep neural network to analyze facial expressions in six million YouTube clips representing people from over 140 countries. The study found that, despite socio-cultural differences, people around the world tended to use about 70% of the same facial expressions in response to different emotional stimuli and situations.[1]

The study’s researchers also published a fascinating interactive map to demonstrate how their machine learning technology assessed various facial expressions and determined subtle differences in emotional responses.

This study highlights the social importance of facial expressions because whether or not we’re consciously aware of them—by gazing into a mirror or your screen on a video conferencing platform—how we present our faces to others can have tremendous impacts on their perceptions of us, our confidence, and our emotional states. This awareness is the essential first step towards

2. Relax Your Face

New research on bruxism and facial tension found the stresses and anxieties of Covid-19 lockdowns led to considerable increases in orofacial pain, jaw-clenching, and teeth grinding, particularly among women.[2]

The National Institute of Dental and Craniofacial Research estimates that more than 10 million Americans alone have temporomandibular joint dysfunction (TMJ syndrome), and facial tension can lead to other complications such as insomnia, wrinkles, dry skin, and dark, puffy bags under your eyes.[3])

To avoid these unpleasant outcomes, start practicing progressive muscle relaxation techniques and taking breaks more frequently throughout the day to moderate facial tension.[4] You should also try out some biofeedback techniques to enhance your awareness of involuntary bodily processes like facial tension and achieve more confident body language as a result.[5]

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3. Improve Your Eye Contact

Did you know there’s an entire subfield of kinesic communication research dedicated to eye movements and behaviors called oculesics?[6] It refers to various communication behaviors including direct eye contact, averting one’s gaze, pupil dilation/constriction, and even frequency of blinking. All of these qualities can shape how other people perceive you, which means that eye contact is yet another area of nonverbal body language that we should be more mindful of in social interactions.

The ideal type (direct/indirect) and duration of eye contact depends on a variety of factors, such as cultural setting, differences in power/authority/age between the parties involved, and communication context. Research has shown that differences in the effects of eye contact are particularly prominent when comparing East Asian and Western European/North American cultures.[7]

To improve your eye contact with others, strive to maintain consistent contact for at least 3 to 4 seconds at a time, consciously consider where you’re looking while listening to someone else, and practice eye contact as much as possible (as strange as this may seem in the beginning, it’s the best way to improve).

3. Smile More

There are many benefits to smiling and laughing, and when it comes to working on more confident body language, this is an area that should be fun, low-stakes, and relatively stress-free.

Smiling is associated with the “happiness chemical” dopamine and the mood-stabilizing hormone, serotonin. Many empirical studies have shown that smiling generally leads to positive outcomes for the person smiling, and further research has shown that smiling can influence listeners’ perceptions of our confidence and trustworthiness as well.

4. Hand Gestures

Similar to facial expressions and posture, what you do with your hands while speaking or listening in a conversation can significantly influence others’ perceptions of you in positive or negative ways.

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It’s undoubtedly challenging to consciously account for all of your nonverbal signals while simultaneously trying to stay engaged with the verbal part of the discussion, but putting in the effort to develop more bodily awareness now will make it much easier to unconsciously project more confident body language later on.

5. Enhance Your Handshake

In the article, “An Anthropology of the Handshake,” University of Copenhagen social anthropology professor Bjarke Oxlund assessed the future of handshaking in wake of the Covid-19 pandemic:[8]

“Handshakes not only vary in function and meaning but do so according to social context, situation and scale. . . a public discussion should ensue on the advantages and disadvantages of holding on to the tradition of shaking hands as the conventional gesture of greeting and leave-taking in a variety of circumstances.”

It’s too early to determine some of the ways in which Covid-19 has permanently changed our social norms and professional etiquette standards, but it’s reasonable to assume that handshaking may retain its importance in American society even after this pandemic. To practice more confident body language in the meantime, the video on the science of the perfect handshake below explains what you need to know.

6. Complement Your Verbals With Hand Gestures

As you know by now, confident communication involves so much more than simply smiling more or sounding like you know what you’re talking about. What you do with your hands can be particularly influential in how others perceive you, whether you’re fidgeting with an object, clenching your fists, hiding your hands in your pockets, or calmly gesturing to emphasize important points you’re discussing.

Social psychology researchers have found that “iconic gestures”—hand movements that appear to be meaningfully related to the speaker’s verbal content—can have profound impacts on listeners’ information retention. In other words, people are more likely to engage with you and remember more of what you said when you speak with complementary hand gestures instead of just your voice.[9]

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Further research on hand gestures has shown that even your choice of the left or right hand for gesturing can influence your ability to clearly convey information to listeners, which supports the notion that more confident body language is readily achievable through greater self-awareness and deliberate nonverbal actions.[10]

Final Takeaways

Developing better posture, enhancing your facial expressiveness, and practicing hand gestures can vastly improve your communication with other people. At first, it will be challenging to consciously practice nonverbal behaviors that many of us are accustomed to performing daily without thinking about them.

If you ever feel discouraged, however, remember that there’s no downside to consistently putting in just a little more time and effort to increase your bodily awareness. With the tips and strategies above, you’ll be well on your way to embracing more confident body language and amplifying others’ perceptions of you in no time.

More Tips on How to Develop a Confident Body Language

Featured photo credit: Maria Lupan via unsplash.com

Reference

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