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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 16, 2020

12 Simple Ways to Boost Your Confidence Right Now

12 Simple Ways to Boost Your Confidence Right Now

The way you feel about yourself greatly influences how you live and interact with others. If you are confident about yourself, you tend to see yourself positively and actually enjoy spending time with and around people. You don’t feel self-conscious or awkward around others, and that allows you to live your fullest and happiest life.

However, if you’re drowning in a sea of self-doubt, hesitancy and shyness, you often withdraw and isolate yourself from others and avoid interacting and connecting with people. That anxiety you feel in the pit of your stomach when you are around people is holding you back greatly and it is not good for your emotional health and overall well-being. You need to do something about it if you are low in self-confidence or have friends or family members who are not confident.

“Confidence isn’t walking into a room thinking you’re better than everyone, it’s walking in not having to compare yourself to anyone” – Anonymous

Here are simple, practical tips to boost your confidence right now and make you feel and act your best.

1. Stop labeling yourself as awkward, timid or shy.

When you label yourself as awkward, timid or shy, you sub-consciously tell your mind to act accordingly and psychologically feel inclined to live up to those expectations. Instead of labeling and entertaining negative self-talk, visualize and affirm yourself as confident and strong. Close your eyes for a minute and visualize yourself in different situation as you would like to be.

Be your own cheerleader. Experts believe that positive affirmation and good mental practices like picturing yourself winning or achieving a goal can lead to greater feelings of self-assurance and prepare your brain for success.[1] As the saying goes, “seeing is believing.” Picture yourself as confident and soon enough you will begin to manifest behavior that gives evidence to this new ‘fact.’

2. Recognize that the world is not focused on you (unless, of course, you are Kanye West).

That means you don’t have to be excessively sensitive about who you are or what you are doing (or not doing). You are not on the center stage; there is no need for preoccupation with self and perfectionism. As rap music star Rocko sings, “You just do you and I will do me, aight?”

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Forget about trying to please everyone or being perfect. Trying to be perfect and being a people-pleaser puts too much pressure on you and creates unnecessary anxiety. Besides, people are too preoccupied with their own issues to pay much attention to your every move unless, of course, you are a mega famous, super celebrity like Beyonce or Kanye West.

3. Focus on other people as opposed to yourself.

If you are low on confidence, self-conscious, nervous and shy in social situations, focus your attention on other people and what they are saying or doing instead of focusing on your own awkwardness.

For example, think about what it is that is interesting about the person who’s the centre of the party or the guy or girl you are talking with. Prompt them to talk more about themselves and be genuinely curious and interested in what they say. You will instantly come across as confident and warmhearted.

People generally want to talk about themselves, be heard and understood. They will love it when you’re eager and willing to listen to them and really hear what they have to say.

This habit of focusing more on what you love in others as opposed to what you dislike in yourself will not only help you become more assertive and comfortable in virtually all social situations, but also instantly make you feel great about yourself.

4. Know (and accept) yourself for who you are.

Chinese military general, strategist and philosopher Sun Tzu, author of the internationally acclaimed book The Art of War, said, “Know yourself and you will win all battles.” Even in the battle with lack of confidence, you will need to know yourself to win.

Knowing yourself starts with understanding that people are not all the same, neither are all social situation suitable for everyone. You might not be confident in large gatherings, but you could be bold and confident in one-on-one and small group interactions. We all have our own unique gifts and unique ways of expressing ourselves. Embrace yours!

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Introverts, for example, have a quiet confidence that is, unfortunately, often confused for shyness. They are naturally low key and prefer to spend time alone. However, this natural disposition affords them certain unique gifts, such as an ability to listen better than most people and notice things that others don’t.

Your uniqueness is where your strength and advantage lies. You won’t be comfortable and confident in all situations all the time. Albert Einstein said,

“Everybody is a genius. But if you judge a fish by its ability to climb a tree, it will live its whole life believing that it is stupid.”

5. Crack a smile.

If there is one sure way to instantly boost your confidence, it’s cracking a smile. Christine Clapp, a public speaking expert at The George Washington University, says that flashing those pretty, pearly white teeth will immediately make you appear both confident and composed. But, the effect of smiling is not just external. Studies show that smiling can also help nix feelings of stress and pave the way for a happier and more relaxed you.[2]

Not a bad return for something seemingly so trite, wouldn’t you agree?

6. Break a sweat—with exercise.

Working out is another great way to make yourself feel amazing and confident. Science has shown that exercising increases your endorphins, helps reduce stress, tones your muscles and makes you feel happy and confident.[3]

And hey, all you have to do is take a walk a few times a week and you’ll see the benefits. What seems to matter—as far as your confidence goes—is whether you break a sweat, not how strenuous your session is, which is pretty cool. Start working out now.

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7. Groom yourself.

This might seem mundane, but it’s amazing how much of a difference a shower and shave can have on your confidence and self-image. And when you spritz on a scent, the boost on confidence and self-esteem is incredible. As it turns out, your favorite fragrance does more than make you smell oh-so-nice.

A study found that a fragrance can inspire confidence in men. Interestingly, the study also found that the more a man likes the fragrance, the more confident he might feel. Another study found that 90% of women feel more confident while wearing a scent than those who go fragrance-free.

8. Dress nicely.

Another one that might seem trite, but it works. If you dress nicely, you’ll instantly feel good about yourself and give your confidence a real boost. That is largely because you’ll feel attractive, presentable and sometimes even successful in nice clothes.

While dressing nicely means something different for everyone, it does not necessarily mean wearing $500 designer outfits. It means wearing clothes that are clean, that you are comfortable in and that are nice-looking and presentable, including casual clothes.

9. Do activities you enjoy.

Whether it is reading a book, playing a musical instrument, riding your bicycle or going fishing, do what you really enjoy and what makes you truly happy often. It will boost your self-esteem, soothe your ego and allow you to identify with your gifts and talents. That will in turn bolster your self-belief and grow your confidence exponentially.

You might not become popular for doing what you love, but you might not even want to be popular at all. Being popular doesn’t make you happy; doing what you love does.

10. Prepare for the possibility of rejection / setback.

Late World No. 1 professional tennis player Arthur Ashe said, “One important key to success is self-confidence. A key to self-confidence is preparation.” You need to prepare for the possibility of rejection and setback.

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Why?

Everybody suffers rejection and setback at one point or another. You are not exempted. The question on your mind, therefore, should not be if you will be rejected, but how you will handle rejection when it comes.

Prepare yourself adequately in every situation to minimize the risk and effect of rejection and so that your confidence is not broken. For example, learn public speaking and rehearse what you are going to say beforehand if you have landed a public speaking engagement. That way, you are sure of yourself and confident you have what it takes to hack it. If you are rejected, don’t take it personally.

Rejection and setbacks happen to the best of us. Take it as a learning experience. Learn from your mistakes and move on.

11. Face uncomfortable situations square in the face.

Don’t run away from uncomfortable situations. Running away from people or situations because you feel scared, shy or timid only confirms and reinforces your shyness. Instead, face the situation that makes you uneasy square in the face. For example, go ahead and talk to that person you are afraid to approach, or go straight to the front of your yoga class! What’s the worst that can happen?

Prepare and be ready for any eventuality. The more you face your fears, the more you realize you are stronger than you thought and the more confident you get. This simple, yet admittedly courageous, act makes you unstoppable. You get comfortable being uncomfortable and begin to feel like you can take on the world. And that is the hallmark of someone destined for great things.

12. Sit up straight and walk tall—you are awesome!

Yes, sit up straight and believe you are awesome. Don’t slump in your chair or slouch your shoulders. Experts say the right stance can not only keep your self-esteem and mood lifted, but also lead to more confidence in your own thoughts.[4]

The way to sit is to open up your chest and keep your head level so that you look and feel poised and assured. And when you get up, stand tall and walk like you’re on a mission. People who sit up straight and walk tall are more attractive and instantly feel more confident. Try it now: you’ll feel fierce and confident just by sitting up straight and walking tall.

Featured photo credit: Freshh Connection via unsplash.com

Reference

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