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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 March 30, 2020

What Does Self-Conscious Mean? (And How to Stop Being It)

What Does Self-Conscious Mean? (And How to Stop Being It)

Have you ever walked into a room and felt like your nerves simply couldn’t handle it? Your heart beats fast, you start to sweat, and you feel like all eyes are on you (even if they’re really not). This is just one of the many ways that being self-conscious can rear its ugly head.

You may not even realize you’re self-conscious, and you may be wondering, “What does self-conscious mean?” That’s a good place to start.

This article will define self-consciousness, show how practically everyone has faced it at one point or another, and give you tips to avoid it.

What Does Self-Conscious Mean?

According to the Merriam-Webster dictionary, self-conscious is defined as “conscious of one’s own acts or states as belonging to or originating in oneself.”[1]

Not so bad, right? There’s another definition, though — one that speaks more to what you’re going through: “feeling uncomfortably conscious of oneself as an object of the observation of others.” For those of us who regularly deal with extreme self-consciousness, that second definition sounds about right.

There are many different ways self-consciousness can spring up. You may feel self-conscious around people you know, like your family members or closest friends. You may feel self-conscious at work, even though you spend hours every week around your co-workers. Or you may feel self-conscious when out in public and surrounded by strangers. However, you probably don’t feel self-conscious when you’re home alone.

How to Stop Being Too Self-Conscious

When you’re in the throes of self-consciousness, it’s nearly impossible to remember how to stop feeling that way. That’s why it’s so important to prepare ahead of time, when you’re feeling ready to tackle the problem instead of succumbing to it.

Here are a variety of ways to feel better about yourself and stop thinking about how others see you.

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1. Ask Yourself, “So What?”

One way to banish negative, self-conscious thoughts is to do just that: banish them.

The next time you walk into a room and feel your face getting red, think to yourself, “So what?” How much does it really matter if people don’t like how you look or act? What’s the worst that could happen?

Most of the time, you’ll find that you don’t have a good answer to this question. Then, you can immediately start assigning such thoughts less importance. With self-awareness, you can acknowledge that your negative thoughts are present and realize that you don’t agree with them.[2] They’re just thoughts, after all.

2. Be Honest

A lie that self-consciousness might tell is that there’s one way to act or feel. Honestly, though, everyone else is just figuring life out as well. There isn’t a preferred way to show up to an event, gathering, or public place. What you can do is be honest with your feelings and thoughts.[3]

If you feel offended by something someone says, you don’t have to smile to be polite or laugh to fit in with the crowd. Instead, you can politely say why you disagree or excuse yourself and find a group of people who you relate to better. If you’re nervous, don’t overcompensate by trying to look relaxed and casual — it’ll be obvious you’re putting on a front. Instead, nothing is more endearing than saying, “I’m a little nervous!” to a room of people who probably feel the exact same way.

On the same note, if you don’t understand why someone wants you to do something, question it. You can do this at work, at home, or even with people you don’t know well. Nobody should force you to do something you don’t want to do.

Also, even if you’re willing to do what’s asked of you, there’s nothing wrong with asking for more clarification. People will realize that you’re not a person to be bossed around.

3. Understand Why You’re Struggling at Work

Being self-conscious at work can get in the way of your daily responsibilities, your relationships with co-workers, and even your career as a whole. If you’re facing some sort of conflict but you’re too nervous to speak up, you may be at the whim of what happens to you instead of taking some control.

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If you’re usually confident at work, you may be wondering where this new self-consciousness is coming from. It’s possible that you’re dealing with burnout.[4] Common signs are anxiety, fatigue and distraction, all of which can leave you feeling under-confident.

4. Succeed at Something

When you create success in your life, it’s easier to feel confident[5] and less self-conscious. If you feel self-conscious at work, finish the project that’s been looming over your head. If you feel self-conscious in the gym, complete an advanced workout class.

Exposing yourself to what you’re scared of and then succeeding at it in some way (even just by finishing it) can do wonders for your self-esteem. The more confidence you build, the more likely you are to have more success in the future, which will create a cycle of confidence-building.

5. Treat All of You — Not Just Your Self-Consciousness

Trying to solve your self-consciousness alone may not treat the root of the problem. Instead, take a well-rounded approach to lower your self-consciousness and build confidence in areas where you may struggle.

Even professional counselors are embracing this holistic type of treatment[6] because they feel that the health of the mind and body are inextricably linked. This approach combines physical, spiritual, and psychological components. Common activities and treatments include meditation, yoga, massage, and healthy changes to diet and exercise.

If much of this is new to you, it will pay to give it a try. You never know how it will impact you.

If you’re feeling self-conscious about how your body looks, a massage that makes you feel great could boost your confidence. If you try a new workout, you could have something exciting to talk about the next time you’re in a group setting.

Putting yourself in a new situation and learning that you can get through it with grace can give you the confidence to get through all sorts of events and nerve-wracking moments.

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6. Make the Changes That Are Within Your Control

Let’s say you walk into a room and you’re self-conscious about how you look. However, you may have put a lot of time and effort into your outfit. Even though it may stand out, this is how you have chosen to express yourself.

You have to work on your internal confidence, not your external appearance. There’s nothing to change other than your outlook.

On the other hand, maybe there’s something that you don’t like about yourself that you can change. For example, maybe you hate how a birthmark on your face looks or have varicose veins that you think are unsightly. If you can do something about these things, do it! There’s nothing wrong with changing your appearance (or skills, education, etc.) if it’s going to make you more confident.

You don’t have to accept your current situation for acceptance’s sake. There’s no award for putting up with something you hate. Confidence is also required to make changes that are scary, even if they’re for the better. Plus, it may be an easier fix than you thought. For example, treating varicose veins doesn’t have to involve surgery — sometimes simple compression stockings will take care of the problem.[7]

7. Realize That Everyone Has Awkward Moments

Everyone has said something awkward to someone else and lived to tell the tale. We’ve all forgotten somebody’s name or said, “You too!” when the concession stand girl says to enjoy our movie. Not only are these things uber-common, but they’re not nearly as embarrassing as you feel they are.

Think about how you react when someone else does something awkward. Do you think, “Wow, that person’s such a loser!” or do you think, “What a relief, I’m not the only one who does that.” Chances are good that’s the same reaction others have to you when you stumble.

Remember, self-consciousness is a state of mind that you have control over. You don’t have to feel this way. Do what you need to in order to build your confidence, put your self-consciousness in perspective, and start exercising your “I feel awesome about myself” muscle. It’ll get easier with time.

When Is Being Self-Conscious a Good Thing?

Self-consciousness can sometimes be a good thing[8], but you have to take the awkwardness and nerves out of it.

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In this case, “self-aware” is a much better term. Knowing how you come off to people is an excellent trait; you’ll be able to read a room and understand how what you do and say affects others. These are fantastic skills for people work and personal relationships.

Self-awareness helps you dress appropriately for the occasion, tells you that you’re talking too loud or not loud enough, and guides a conversation so you don’t offend or bore anyone.

It’s not about being someone you’re not — that can actually have adverse effects, just like self-consciousness. Instead, it’s about turning up certain aspects of yourself to perform well in the situation.

Final Thoughts

When you’re self-conscious, you’re constantly battling with yourself in an effort to control how other people view you. You try to change yourself to suit what you think other people want to see.

The truth, though, is that you can’t actually control how other people view you — and you may not even be correct about how they view you in the first place.

Being confident doesn’t happen overnight. Instead, it happens in small steps as you slowly build your confidence and say “no” to your self-consciousness. It also requires accepting that you’re going to feel self-conscious sometimes, and that’s okay.

Sometimes worrying that there is a problem can be more stressful than the problem itself. Feeling bad for feeling self-conscious can be more troublesome than simply feeling it and getting on with the day.

Forgive yourself for being human and make the small changes that will lead to better confidence in the future.

More Tips for Improving Your Self-Esteem

Featured photo credit: Cata via unsplash.com

Reference

[1] Merriam-Webster: Self-conscious
[2] Bustle: 7 Tips On How To Stop Feeling Self-Conscious
[3] Marc and Angel: 10 Things to Remember When You Feel Unsure of Yourself
[4] Bostitch: How to Protect Small Businesses From Burnout
[5] Psychology Today: Self-conscious? Get Over It
[6] Wake Forest University: Embracing Holistic Medicine
[7] Center for Vein Restoration: What Causes Venous Ulcers, and How Are They Treated?
[8] Scientific American: The Pros and Cons of Being Self-Aware

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