Friday, May 1, 2009

Warren Buffet Books - Are They Worth Reading

Are any of the thousands of Warren Buffet books worth reading, that is the question. Warren Buffet was born in 1930 in Omaha, Nebraska and has become probably the world's most successful investor. He is the son of a stockbroker and Congressman, and of course everyone wants to learn about his investment secrets.
I don't think that Warren Buffet has actually written a book about his investment principals himself, but he has from time to time given hints in his annual letters to share holders of Berkshire Hathaway, and in other short notes and reports to the media.
However there have been a lot of books written about Warren Buffet by others who have tried to put together the story and ideas behind the man and his fortune.
In fact if you go to Amazon and do a search for "Warren Buffet" will find 2,576 books being listed, compare that to "Bill Gates", who for a long time was also considered to be the riches man in the world, and you only find 11 listings, that should give you some idea about the public obsession with the man.
I have only read one of his books called "The Warren Buffett Way", it was hard work and somewhat of a boring read. Much of the content of all these books on Warren Buffet seems to be the same basic information about value investing and being patient with your investments. I don't think there is much to be gained by reading more than one of them.
Here is a small selection of some of the better known ones:
The Warren Buffett Way, Second Edition by Robert G. Hagstrom, Ken Fisher, and Bill The Snowball - Warren Buffett and the Business of Life The essential Buffett library Investing - the Last Liberal Art - by Robert Hagstrom Buffett, by Roger Lowenstein The New Buffettology, by Mary Buffet and David Clark The Interpretation of Financial Statements, by Benjamin Graham Value Investing, by Janet Lowe Robert Hagstrom, The Warren Buffett Way Mary Buffett and David Clark, Buffettology Janet Lowe, Warren Buffett Speaks: Wit and Wisdom from the Word's Greatest Investor John Train, The Midas Touch: The Strategies That Have Made Warren Buffett 'America's Preeminent Investor'. Andrew Kilpatrick, Of Permanent Value: The Story of Warren Buffett Warren Buffett, Lawrence Cunningham (editor), The Essays of Warren Buffett Janet M. Tavakoli, Dear Mr. Buffett: What An Investor Learns 1,269 Miles From Wall Street
Many of these books are quite large, with many pages that would take a long time to read, and even longer to understand and make any sense of. A better way of understanding Buffet maybe to find articles which have summarised the Buffet principals into short concise lessons that can be quickly learnt and applied.
One point of caution however, and this is not investment advice, Buffet has made most of his fortune during the years of the great USA bull markets, times have changed and maybe these principals are no longer as effective as they used to be.

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