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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 November 5, 2018

8 Powerful Reasons to Love Your Enemies

8 Powerful Reasons to Love Your Enemies

We’ve all got our enemies; people who take pleasure in causing us pain and misery. Sometimes, the development of an enemy is due to certain differences in your characters and events have led to that. Other times, some people end up hating you for apparently no reason at all.

Regardless of how you got this enemy, as opposed to the paradigm of fighting fire with fire, consider the following reasons and see why you should actually appreciate your enemies. This article will show you not only how to not be bothered by your enemies, but how to actually foster love for them.

Read on to learn the secret.

1. It’s a practical lesson in anger management

To be honest, your enemies are the best people to help you understand your sense of anger management. When it might be true that your enemies have a way of bringing out the worst in you as regards anger, it is also true that they can help you in your quest to have that anger managed. You can’t get truly angry at someone you love and it is only in that time when you get truly annoyed that you learn how to manage it.

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Anger management is more effective when it is in practice and not in theory

Your enemies are like the therapists who you need, but actually don’t want. Inasmuch as you might want to hate them, they provide you an opportunity to control the anger impulse that you have.

2. It’s an opportunity for healthy competition

You might not know it, but your enemies make for great rivals as they help harness the competitor in you (sometimes, you might not even know or bee conversant with this competitive side until you come across an adversary). You get the right motivation to compete and this can go a long way to spur you to victory.

However, while doing so, it is also essential that you remember not to become a worse version of yourself while competing. Working against an adversary is tricky, and you need to ensure that you don’t cause harm to yourself or your morals in the process. Healthy competition is all you need to get out of this.

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3. Their negative comments can help you make a breakthrough

It is true that your enemies never really have much good to say about you. However, in as much as they might be talking out of a place of hate, there might be some truth to what they’re saying.

To wit, whenever you hear something mean or nasty from an enemy, you might want to take a step back and evaluate yourself. There is a chance that what this enemy is saying is true and coming to face that fact is a major step in helping you to become a better person overall. This is another testament to the fact that enemies can be therapists in their own way.

4. Enemies can also be powerful allies

Loving your enemies can also mean making an effort to interact and make peace with them. In the end, if you are able to establish some common ground and patch things up, you’ll have succeeded in making another friend. And who doesn’t need friends?

This can also help you in working with people in the long run. You get to hone your inter-personal skills, and that can be a big plus to your ledger.

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5. It gives you the ability to realize positivity

In a multitude of negativity, a speck of positivity always seems to find its way through.

Sometimes, a knowledge of the fact that you have enemies will also help you to focus on the many positives and good things that are in your life. A lot of times, we neglect what really matters in life. This can be due to being overly concerned with the enemies we have.

However, it is also possible for this acknowledgement to spur you to take a step back and appreciate the goo things (and people who surround you).

6. There might just be a misunderstanding

Sometimes, the reason why you have an enemy might be something very innocuous. You might not have known the cause of this fractured relationship and your enemy will help complete the picture.

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Simply approaching them will help you to understand the reason for the fracture. This, in turn, can help you to work towards healing your relationship moving forward. Misunderstandings happen, and you need to be able to work around them.

7. You learn to appreciate love as well

A constant reminder of the fact that there are enemies will also help you not to take those who love you for granted. Love and hate are two opposing emotions and it is possible for one to momentarily overshadow the other.

However, while you’ll always have enemies, there will also always be people who love you. These people need to be appreciated for what they do for you. Never let the hate projected to you from your enemies take the place of that.

8. Do you really need the hate?

The truth is that enemies bring only toxic emotions and generate bad reactions from you. If you’re truly to live a prosperous life, you can’t really be carrying all this baggage around.

Hate is bad and you should try all you can to get rid of it. It is a well-known fact that nobody can get really far in life while carrying a lot of emotional baggage. Well, hate is the biggest form of emotional baggage there is.

Featured photo credit: rawpixel via unsplash.com

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