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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 14, 2019

7 Questions to Ask in a Job Interview That Will Impress the Interviewer

7 Questions to Ask in a Job Interview That Will Impress the Interviewer

Recruiters might hold thousands of interviews in their careers and a lot of them are reporting the same thing—that most candidates play it safe with the questions they ask, or have no questions to ask in a job interview at all.

For job applicants, this approach is crazy! This is a job that you’re going to dedicate a lot of hours to and that might have a huge impact on your future career. Don’t throw away the chance to figure out if the position is perfect for you.

Here are 7 killer questions to ask in a job interview that will both impress your counterpart and give you some really useful insights into whether this job will be a dream … or a nightmare.

1. What are some challenges I might come up against this role?

A lesser candidate might ask, “what does a typical day look like in this role?” While this is a perfectly reasonable question to ask in an interview, focusing on potential challenges takes you much further because it indicates that you already are visualizing yourself in the role.

It’s impressive because it shows that you are not afraid of challenges, and you are prepared to strategize a game plan upfront to make sure you succeed if you get the job.

It can also open up a conversation about how you’ve solved problems in the past which can be a reassuring exercise for both you and the hiring manager.

How it helps you:

If you ask the interviewer to describe a typical day, you may get a vibrant picture of all the lovely things you’ll get to do in this job and all the lovely people you’ll get to do them with.

Asking about potential roadblocks means you hear the other side of the story—dysfunctional teams, internal politics, difficult clients, bootstrap budgets and so on. This can help you decide if you’re up for the challenge or whether, for the sake of your sanity, you should respectfully decline the job offer.

2. What are the qualities of really successful people in this role?

Employers don’t want to hire someone who goes through the motions; they want to hire someone who will excel.

Asking this question shows that you care about success, too. How could they not hire you with a dragon-slayer attitude like that?

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How it helps you:

Interviewers hire people who are great people to work with, but the definition of “great people” differs from person to person.

Does this company hire and promote people with a specific attitude, approach, worth ethic or communication style? Are the most successful people in this role strong extroverts who love to talk and socialize when you are studious and reserved? Does the company reward those who work insane hours when you’re happiest in a more relaxed environment?

If so, then this may not be the right match for you.

Whatever the answer is, you can decide whether you have what it takes for the manager to be happy with your performance in this role. And if the interviewer has no idea what success looks like for this position, this is a sign to proceed with extreme caution.

3. From the research I did on your company, I noticed the culture really supports XYZ. Can you tell me more about that element of the culture and how it impacts this job role?

Of course, you could just ask “what is the culture like here? ” but then you would miss a great opportunity to show that you’ve done your research!

Interviewers give BIG bonus point to those who read up and pay attention, and you’ve just pointed out that (a) you’re diligent in your research (b) you care about the company culture and (c) you’re committed to finding a great cultural fit.

How it helps you:

This question is so useful because it lets you pick an element of the culture that you really care about and that will have the most impact on whether you are happy with the organization.

For example, if training and development is important to you, then you need to know what’s on offer so you don’t end up in a dead-end job with no learning opportunities.

Companies often talk a good talk, and their press releases may be full of shiny CSR initiatives and all the headline-grabbing diversity programs they’re putting in place. This is your opportunity to look under the hood and see if the company lives its values on the ground.

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A company that says it is committed to doing the right thing by customers should not judge success by the number of up-sells an employee makes, for instance. Look for consistency, so you aren’t in for a culture shock after you start.

4. What is the promotion path for this role, and how would my performance on that path be measured?

To be clear, you are not asking when you will get promoted. Don’t go there—it’s presumptuous, and it indicates that you think you are better than the role you have applied for.

A career-minded candidate, on the other hand, usually has a plan that she’s working towards. This question shows you have a great drive toward growth and advancement and an intention to stick with the company beyond your current state.

How it helps you:

One word: hierarchy.

All organizations have levels of work and authority—executives, upper managers, line managers, the workforce, and so on. Understanding the hierarchical structure gives you power, because you can decide if you can work within it and are capable of climbing through its ranks, or whether it will be endlessly frustrating to you.

In a traditional pyramid hierarchy, for example, the people at the bottom tend to have very little autonomy to make decisions. This gets better as you rise up through the pyramid, but even middle managers have little power to create policy; they are more concerned with enforcing the rules the top leaders make.

If having a high degree of autonomy and accountability is important to you, you may do better in a flat hierarchy where work teams can design their own way of achieving the corporate goals.

5. What’s the most important thing the successful candidate could accomplish in their first 3 months/6 months/year?

Of all the questions to ask in a job interview, this one is impressive because it shows that you identify with and want to be a successful performer, and not just an average one.

Here, you’re drilling down into what the company needs, and needs quite urgently, proving that you’re all about adding value to the organization and not just about what’s in it for you.

How it helps you:

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Most job descriptions come with 8, 10 or 12 different job responsibilities and a lot of them with be boilerplate or responsibilities that someone in HR thinks are associated with this role. This question gives you a better sense of which responsibilities are the most important—and they may not be what initially attracted you to the role.

If you like the idea of training juniors, for example, but success is judged purely on your sales figures, then is this really the job you thought you were applying for?

This question will also give you an idea of what kind of learning curve you’re expected to have and whether you’ll get any ramp-up time before getting down to business. If you’re the type of person who likes to jump right in and get things done, for instance, you may not be thrilled to hear that you’re going to spend the first three months shadowing a peer.

6. What do you like about working here?

This simple question is all about building rapport with the interviewer. People like to talk about themselves, and the interviewer will be flattered that you’re interested in her opinions.

Hopefully, you’ll find some great connection points that the two of you share. What similar things drive you head into the office each day? How will you fit into the culture?

How it helps you:

You can learn a lot from this question. Someone who genuinely enjoys his job will be able to list several things they like, and their answers will sound passionate and sincere. If not….well, you might consider that a red flag.

Since you potentially can learn a lot about the company culture from this question, it’s a good idea to figure out upfront what’s important to you. Maybe you’re looking for a hands-off boss who values independent thought and creativity? Maybe you work better in environments that move at a rapid, exciting pace?

Whatever’s important to you, listen carefully and see if you can find any common ground.

7. Based on this interview, do you have any questions or concerns about my qualifications for the role?

What a great closing question to ask in a job interview! It shows that you’re not afraid of feedback—in fact, you are inviting it. Not being able to take criticism is a red flag for employers, who need to know that you’ll act on any “coaching moments” with a good heart.

As a bonus, asking this question shows that you are really interested in the position and wish to clear up anything that may be holding the company back from hiring you.

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How it helps you:

What a devious beast this question is! On the surface, it looks straightforward, but it’s actually giving you four key pieces of information.

First, is the manager capable of giving you feedback when put on the spot like this? Some managers are scared of giving feedback, or don’t think it’s important enough to bother outside of a formal performance appraisal. Do you want to work for a boss like that? How will you improve if no one is telling you what you did wrong?

Second, can the manager give feedback in a constructive way without being too pillowy or too confrontational? It’s unfair to expect the interviewer to have figured out your preferred way of receiving feedback in the space of an interview, but if she come back with a machine-gun fire of shortcomings or one of those corporate feedback “sandwiches” (the doozy slipped between two slices of compliment), then you need to ask yourself, can you work with someone who gives feedback like that?

Third, you get to learn the things the hiring manager is concerned about before you leave the interview. This gives you the chance to make a final, tailored sales pitch so you can convince the interviewer that she should not be worried about those things.

Fourth, you get to learn the things the hiring manager is concerned about period. If turnover is keeping him up at night, then your frequent job hopping might get a lot of additional scrutiny. If he’s facing some issues with conflict or communication, then he might raise concerns regarding your performance in this area.

Listen carefully: the concerns that are being raised about you might actually be a proxy for problems in the wider organization.

Making Your Interview Work for You

Interviews are a two-way street. While it is important to differentiate yourself from every other candidate, understand that convincing the interviewer you’re the right person for the role goes hand-in-hand with figuring out if the job is the right fit for you.

Would you feel happy in a work environment where the people, priorities, culture and management style were completely at odds with the way you work? Didn’t think so!

More Resources About Job Interviews

Featured photo credit: Amy Hirschi via unsplash.com

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