The Intelligent Investor by Benjamin Graham

View on Amazon - Originally published: 1949

Benjamin Graham (alongside Columbia Business School fellow David Dodd) is credited with introducing the concept of Value Investing. The Intelligent Investor has led Graham to often be referred to as the “father of value investing”.

The concepts within the book - such as focussing on the intrinsic value of an asset over the market price, and consciously avoiding herd mentality when making decisions - have been much discussed, and have inspired generations of investors. However, the behaviour of markets and the performance of so many professional and personal portfolios suggest they are easily forgotten, making The Intelligent Investor as valuable a read today as ever. His concept of “Mr Market” applies as much today as it did when the book was published.

Common Stocks and Uncommon Profits and Other Writings by Philip A. Fisher

View on Amazon - Originally published: 1957

While Graham's The Intelligent Investor emphasised value investing and a margin of safety, Philip Fisher's Common Stocks and Uncommon Profits introduced a different perspective, focusing more on growth and quality. It offers a profound and insightful approach to stock selection and long-term wealth creation.

Fisher provides a detailed framework for evaluating companies, including factors like management quality, research and development, and competitive advantage. He emphasises the importance of identifying strong, ethical, and competent management teams.

Poor Charlie's Almanack: The Essential Wit and Wisdom of Charles T. Munger

View on Amazon - Originally published: 2005

Charlie Munger was recently credited as the “architect” of the present Berkshire Hathaway by Warren Buffet.

Indeed, Buffett quotes Munger saying to him: “Warren, forget about ever buying another company like Berkshire. But now that you control Berkshire, add to it wonderful businesses purchased at fair prices and give up buying fair businesses at wonderful prices. In other words, abandon everything you learned from your hero, Ben Graham. It works, but only when practised at a small scale.”

”With much back-sliding I subsequently followed his instructions.” Buffet recalled.

Berkshire Hathaway Letters to Shareholders

View on Amazon - Originally published: 2012

The best way to get an insight into Warren Buffett's and Charlie Munger's thoughts and process on practical matters and their investment philosophy (and their influences, including Benjamin Graham and Philip Fisher), is to read the Berkshire Hathaway Letters to Shareholders.

They set out detailed considerations on Berkshire Hathaway investments, how they think about companies and factors affecting them such as capital allocation and other key criterias in their investment evolution and process.

The Essays of Warren Buffett: Lessons for Corporate America compiled by Lawrence A. Cunningham

View on Amazon - Originally published: 2015

This book is a more formal approach to Berkshire Hathaway's investment philosophy, discussing topics such as corporate governance, corporate finance and investing, common stock, mergers and acquisitions, and accounting and taxation.

Shoe Dog: A Memoir by the Creator of Nike by Phil Knight

View on Amazon - Originally published: 2016

In his 2016 letter, Buffett called “Shoe Dog” the “best book I read last year.” and Bill Gates called it “An honest tale of what it takes to succeed in business”

Bill Gates summarised the book on his blog: “Shoe Dog, Phil Knight's memoir about creating Nike, is a refreshingly honest reminder of what the path to business success really looks like. It's a messy, perilous, and chaotic journey riddled with mistakes, endless struggles, and sacrifice. In fact, the only thing that seems inevitable in page after page of Knight's story is that his company will end in failure.

In the pages of Shoe Dog, however, Knight opens up in a way few CEOs are willing to do. He's incredibly tough on himself and his failings. He doesn't fit the mould of the bold, dashing entrepreneur. He's shy, introverted, and often insecure. He's given to nervous ticks — snapping rubber bands on his wrist and hugging himself when stressed in business negotiations. It took him weeks to tell Penny, the woman who would become his wife, that he liked her. And yet, in spite of or perhaps because of his unusual character traits, he was able to realise the “Crazy Idea,” as he calls it, to do something different with his life and create his own shoe company.”

Memos From Howard Marks / Oaktree Insights

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Warren Buffett said "When I see memos from Howard Marks in my mail, they're the first thing I open and read. I always learn something, and that goes double for his book."

Howard Marks focuses on risk management and famous for coining the terms “First-level and Second-level thinker” to describe investors, which he defined as follows in one of his memos:

“The first-level thinker simply looks for the highest-quality company, the best product, the fastest earnings growth or the lowest p/e ratio. He's ignorant of the very existence of a second level at which to think, and of the need to pursue it.

The second-level thinker goes through a much more complex process when thinking about buying an asset. Is it good? Do others think it's as good as I think it is? Is it really as good as I think it is? Is it as good as others think it is? Is it as good as others think others think it is? How will it change? How do others think it will change? How is it priced given: its current condition; how I think its condition will change; how others think it will change; and how others think others think it will change?”.

His memos cover current events in the world of finance and are a must read for everyone keen to understand what is going on with an intelligent perspective.