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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 June 13, 2019

How to Quit Your Boring Life and Start Living an Interesting One

How to Quit Your Boring Life and Start Living an Interesting One

Think you have a boring life?

The definition of boring is dull or not interesting. Maybe you’ve been doing the same thing and living the same life for too long, or maybe your daily routine is limiting your growth and happiness. Whatever your reason is, the following list of 20 things can definitely make any day more interesting. Some of them are silly, while some are more meaningful, so hopefully just reading the list makes your life less boring and sparks your creativity.

Let’s dive in the list to quit your boring life and start living an interesting (and meaning) one!

1. Channel Your 7-Year-Old Self

What would he or she want to do right now? Color? Paint? Run around outside? Play dress up? Eat with your hands? Play that instrument hiding in the back of your closet that you haven’t touched in years?

Just because you’re a grown up doesn’t mean any of this stuff will be less enjoyable than you remember it. Give yourself permission to play.

2. Go Play with Kids

Speaking of little kids, if you have your own or access to any (in a non-creepy way, like they’re your niece or your best friend’s kid, you get the idea) go play with them!

They didn’t create an entire show called Kids Say The Darndest Things because kids aren’t hilarious. They also keep things so simple, and we can really stand to be reminded of this and stop allowing ourselves to get bogged down in boring details.

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3. Order a Hot Dog

While you’re eating it, Google: “What’s in a hot dog?” You decide whether or not you want to finish it.

4. For the Ladies: Wear Your Sexiest Lingerie Under Your Work Clothes

Your “little secret” will leave you feeling anything but boring all day!

5. Play Cell Phone Roulette

You’ll need at least one buddy for this. Scroll through the contacts in your phone, stop on a random one and call the person.

You could spark an incredible catch up session or be incredibly awkward. Neither are boring.

6. Fill out a Pack of Thank-You Cards

Give them to random people who probably don’t get thanked too often for doing what they do ever day.

Ideas: police officers, librarians, servers, baristas, cab drivers, sanitation workers, teachers, people behind any check out counter, receptionists, your friends, the guy at the falafel stand, etc.

7. Sign up for a Class in Something You’ve “Always Wanted to Do”, or Something That Makes You Really Uncomfortable

Ideas: pole dancing, salsa lessons, improv, pottery, cooking, knitting (yup, there are classes for this, too!), karate, boxing, something techy like the workshops they run in Apple stores, get Rosetta Stone and learn that language you’ve always wanted to speak, etc.

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What’s good about joining an interest class is that you will also meet new people!

8. Interview Your Grandparents About Their Lives

You can bet they’ve had some crazy experiences you probably never knew about.

9. Get up on Stage at an Open Mic Night

Whether you’re funny or not, get up on stage and just talk funny. And if you’re not, memorize a few of your favorite jokes and tell those!

10. Do Something for Someone Else That You Wish Someone Would Do for You

We all have a few ideas on this list. I promise you will feel amazing after and anything but bored.

11. Start a DIY Project in Your Home

It doesn’t have to be super complicated. If you need ideas, there’re plenty on Pinterest. Or you can also check out these 30 Awesome DIY Projects that You’ve Never Heard of.

12. Plan a Weekend Trip or an All-Out Vacation

This will give you something to look forward to.

Even if you don’t have the time or money to go on a vacation, plan for a staycation, which is same fun and relaxing!

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13. People Watch

Find a bench in a crowded area (centers of transportation like airports, bus stops and train stations are great for this!) and just observe.

People are infinitely interesting.

14. Eat Something You’ve Never Eaten Before

Bonus points if it’s a random fruit or veggie.

15. Dance

You can get your friends together for a night on the town or just pull up a video on YouTube and bust a move from your own living room.

If you’re feeling extra brave, you can even dance in public and get other people involved.

16. Go to YOUTUBE and Search “Funny Pets” or “Funny Babies”

This is also a great quickie ab workout as you will be laughing hysterically.

17. Pick up a Book and Start Reading

Check out the NY Times Best Sellers lists and grab a new book you can get lost in.

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18. Step Away from the Computer and Go Get Some Time with People You Care About in Real Life

Facebook stalking doesn’t count as real social interaction. You can even share this post with your friends and vote on which one you’d like to do together!

19. Check out a Museum You’ve Never Been to Before

OK, depending on your interests, this one might actually be boring. If you love learning, art or different cultures though, this one is for you!

20. Write a List of Things You Desire and Truly Want

This is a great way to help you figure out the real reason why you’re feeling bored about your life. Maybe you haven’t really done things that you truly enjoy? Maybe what you’ve wanted to do all the time has been left behind?

Think about the list of things you really want to do, and ask yourself why you aren’t doing these things (yet). Then start taking your first step to make what you want happen.

Now go make your life interesting and live your dream life!

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Featured photo credit: Kev Costello via unsplash.com

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