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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 September 28, 2020

30 Powerful Success and Failure Quotes That Will Lead You to Success

30 Powerful Success and Failure Quotes That Will Lead You to Success

No one can live a positive life without failing. However, many people experience a fear of failure, despite its inevitability in life. Failure, as you will see from these 30 success and failure quotes, is the key ingredient for the recipe of success!

Today’s society is obsessed with success and achievement, and failure is definitely NOT part of the equation. Failure and making mistakes is hidden away or seen as a human weakness.

However, if you avoid making mistakes in life, struggle to do everything right, and are obsessed with perfection and order, then living and experiencing a successful and happy life is going to be impossible.

Embrace your failure, whether it is one failure or many failures, because with the right attitude and a willingness to learn from your mistakes, you are guaranteed a lifetime of success. Here are some uplifting quotes about failure and success to help you get started.

1. “Never let success get to your head; never let failure get to your heart.” -Anonymous

This quote is important for those of us who feel downtrodden after every failure, heartbroken, if you will. If you let failure get you down for more than a couple of days, you’re wasting away your chance to bounce back from it.

On the other hand, if you allow yourself to build an inflated ego after every success, future failures may be even harder to cope with. Maintain a sense of humility and gratitude for each success and failure you find.

2. “Just because you fail once, doesn’t mean you’re gonna fail at everything. Keep trying, hold on, and always, always, always believe in yourself, because if you don’t, then who will, sweetie?” -Marilyn Monroe

Marilyn Monroe is spot on with this one. The first person who should be there to catch you when you fall is you. You have to be your own best advocate, the person to build you up when it feels like everything is going wrong. The others in your support system are just icing on the cake.

3. “You always pass failure on your way to success.” -Mickey Rooney

In today’s competitive world, it’s hard to understand that almost no one experiences failure before they experience genuine, lasting success. Failure is what forces you to learn in order to achieve that goal you’ve been working up to.

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4. “Failure is not falling down but refusing to get up.” -Chinese proverb

Everyone falls. Those who refuse to pick themselves back up, no matter if it’s after two days or two years, are the true failures.

5. “Successful people don’t fear failure but understand that it’s necessary to learn and grow from.” -Robert Kiyosaki

There are many success and failure quotes on this idea, and that’s because it’s so very important. Learning doesn’t happen when things are easy. It happens when things get tough and you have to find a way through challenges.

6. “The real test is not whether you avoid this failure, because you won’t. It’s whether you let it harden or shame you into inaction, or whether you learn from it; whether you choose to persevere.” -Barack Obama

No one can escape failure. If you let it keep you down and shying away from achieving your goals, you’ve failed again. If you learn from it and continue on your path toward greatness, it wasn’t a true failure but a lesson.

7. “Failure will never overtake me if my determination to succeed is strong enough.” -Og Mandion

Determination is one of the best antidotes to failure. Even if you take two steps forward and one step back, you’re still moving forward with grit and determination. Keep going!

8. “Fear regret more than failure.” -Taryn Rose

At the end of your life, what do you think you’ll feel worst about, failing or never trying?

9. “Do not judge me by my successes, judge me by how many times I fell down and got back up again.” -Nelson Mandela

If anyone has enough insight to offer us success and failure quotes, it’s Nelson Mandela. He learned that that path to success (and freedom) is full of setbacks. His determination, however, led him to make amazing changes in the world around him. Now that’s success.

10. “The secret of life is to fall seven times and to get up eight times.” -Paulo Coelho

Each time you get back up, it will get easier and easier, and you’ll realize each time that those failures are the greatest lessons life will ever give you.

11. “Most great people have attained their greatest success just one step beyond their greatest failure.” -Napoleon Hill

Unfortunately, many people stop trying after a large failure comes their way. They lose their confidence, determination, and will. However, success usually follows quickly behind these huge failures because you’ve inevitably learned what not to do.

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Don’t stop with the huge failure. Take a few more steps and see if it gets you where you wanted to go.

12. I have not failed, I’ve just found 10,000 ways that won’t work.” -Thomas Alva Edison

Through his success and failure quotes, Thomas Edison shows us that failures are only truly failures if you don’t learn the lesson they offer.

13. “It’s fine to celebrate success, but it is more important to heed the lessons of failure.” -Bill Gates

Celebrating success feels good, but learning the lessons of failure is where growth occurs[1], which can lead you to even greater successes.

14. “The only thing that separates success from failure is one last attempt. Try one more time and you will get lucky.” -Apoorve Dubey

Every success comes from an attempt. If you don’t try one more time, you’ll never know if it could’ve been your big chance at big success.

15. “Failure is a detour; not a dead-end street.” -Zig Ziglar

Many people get impatient with failure. They feel that it’s a stopping point, or a road that’s too long to walk. However, the patience to take that new road is exactly what’s necessary to find success. If success is easy to find, it likely won’t last very long.

16. “In the real world, very smart people fail, and mediocre people rise. Part of what makes people fail or succeed are skills that have nothing to do with IQ. Also, the idea that intelligence can be gauged by an IQ test is erroneous.” -Camille Paglia

Failure is not a sign of a lack of intelligence, as Paglia suggests. Failure is a sign of great intelligence and great courage. She also points out the important point that intelligence takes many forms, and it’s often the grit and maturity to accept failure for the temporary setback that it is.

17. “Think like a queen. A queen is not afraid to fail. Failure is another stepping stone to greatness.” -Oprah Winfrey

Queens will always be queens, no matter if they experience success or failure. And you will always be you, so use that to your advantage, and take the risk of failure in order to reach success.

18. “It is impossible to live without failing at something, unless you live so cautiously that you might as well not have lived at all – in which case, you fail by default.” -J.K. Rowling

Living a life free of failure generally means you have lived a boring, uneventful life. Is it really worth it?

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19. “You don’t learn to walk by following rules. You learn by doing, and by falling over.” -Richard Branson

If you’ve ever watched a child learn to walk, you know that Branson’s success and failure quotes are true. Children are determined. They fall, and they get back up. And then they learn, and soon they’re running.

20. “Success or failure is caused more by mental attitude than by mental capacity.” -Walter Scott

Scott knows that intelligence is less of a determining factor in success than determination or ruthless optimism. Set yourself up for success by cultivating both.

21. “I’ve missed more than 9000 shots in my career. I’ve lost almost 300 games. 26 times, I’ve been trusted to take the game winning shot and missed. I’ve failed over and over and over again. That is why I succeed.” -Michael Jordan

Michael Jordan knows failure, and yet we know him as an incredibly successful person. Why? Because he never let the failures stop him from moving on.

22. “There comes a time in your life, when you walk away from all the drama and people who create it. You surround yourself with people who make you laugh. Forget the bad, and focus on the good. Love the people who treat you right, pray for the ones who don’t. Life is too short to be anything but happy. Falling down is a part of life, getting back up is living.” -José N. Harris

The secrets to success are pretty simple, and living a full life is only possible once you learn that getting up after a failure will bring a great sense of satisfaction and joy.

23. “All people fail at certain instances in their lives, the only thing that makes them different is how they manage to stand up or how they choose to fail again.” -Unknown

If you fail, you’re like the vast majority of the world. What makes you different is how you choose to respond.

24. “Only those who dare to fail greatly can ever achieve greatly.” -Robert Kennedy

If you aim high, even if you fall short you’ll still likely be ahead of the majority of people. Take the time in life to fail greatly because that’s where you’ll find your true self.

25. “Failure is good as long as it doesn’t become a habit.” -Michael Eisner

If you continue to make the same mistakes, you’re not learning from your failures. This is when it becomes a destructive habit instead of a moment to propel you toward success.

26. “If you are afraid of failure, you don’t deserve to be successful.” -Charles Barkley

Only those who are willing to accept the hard emotions that come along with failure will be those who will enjoy the good feelings of genuine success.

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27. “Failure should be our teacher, not our undertaker. It is delay, not defeat. It is a temporary detour, not a dead-end street.” -William A. Ward

In his success and failure quotes, Ward points out something important. Failure is often seen as a death stroke, something that stops our success. If we shift our perspective and look upon failure as a teacher instead, we will likely feel very differently about those moments in our life and see that failure is delay, not death.

28. “Courage allows the successful woman to fail and learn powerful lessons from the failure. So that in the end, she didn’t fail at all.” -Maya Angelou

We’ve been here before. Failure is only failure if you don’t learn from it. Let yourself get a bad grade on the test; you’ll study differently next time. Let yourself fail at a relationship; you know how to build a healthier relationship next time.

Every failure brings a lesson. Learn it and move on.

29. “Good people are good because they’ve come to wisdom through failure. We get very little wisdom from success, you know.” -William Saroyan

If you think of the moments you learned and grew the most, were they easy times or hard times? Challenges make us better, smarter people[2]. You don’t get wise through an easy life.

30. “Don’t fear failure—not failure, but low aim, is the crime. In great attempts it is glorious even to fail.” -Bruce Lee

If you try to achieve something great, even a failure feels like a success. At least you had the courage to try. That’s more than most can say.

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Featured photo credit: Gabrielle Henderson via unsplash.com

Reference

[1] Harvard Business Review: Strategies for Learning from Failure
[2] Psychology Today: How Greater Challenges Help You Grow

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