Saturday, September 27, 2014

NINE BOOKS BILLIONAIRE WARREN BUFFETT THINKS EVERYONE SHOULD READ .....




 COURTESY :BUSINESS INSIDER

When Warren Buffett started his investing career, he would read 600, 750, or 1,000 pages a day.Even now, he still spends about 80% of his day reading."Look, my job is essentially just corralling more and more and more facts and information, and occasionally seeing whether that leads to some action," he once said in an interview."We don't read other people's opinions, “he says. "We want to get the facts, and then think."To help you get into the mind of the billionaire investor, we've rounded up his book recommendations over 20 years of interviews and shareholder letters.


1."THE INTELLIGENT INVESTOR " by Benjamin Graham

When Buffett was 19 years old, he picked up a copy of legendary Wall Streeter Benjamin Graham's "Intelligent Investor."It was the one of the luckiest moments of his life, he said, since it gave him the intellectual framework for investing."To invest successfully over a lifetime does not require a stratospheric IQ, unusual business insights, or inside information," Buffett said. "What's needed is a sound intellectual framework for making decisions and the ability to keep emotions from corroding that framework. This book precisely and clearly prescribes the proper framework. You must provide the emotional discipline."

2."SECURITY ANALYSIS" by Benjamin Graham

Another groundbreaking work of Graham's, Buffett said that "Security Analysis" has given him "a road map for investing that I have now been following for 57 years."
The book's core insight: If you do a thorough enough of analysis, you can figure out the value of a company — and if the market knows the same.Buffett has said that Graham was the second most influential figure in his life, only after his father."Ben was this incredible teacher, I mean he was a natural," he said.

3."COMMON STOCKS AND UNCOMMON PROFITS" by Philip Fisher

While investor Philip Fisher — who specialized in investing in innovative companies — didn't shape Buffett in quite the same way as Graham did, he still holds him in the highest regard.
"I am an eager reader of whatever Phil has to say, and I recommend him to you," Buffett said.In "Common Stocks and Uncommon Profits," Fisher emphasizes that fixating on financial statements isn't enough — you also need to evaluate a company's management.

4."STRESS TEST : REFLECTIONS ON FINANCIAL CRISES" by Tim Geithner
Buffett says that the former Secretary of the Treasury's book about the financial crisis is a must-read for any manager.
Lots of books have been written about how to manage an organization through tough times. Almost none are firsthand accounts of steering a wing of government through economic catastrophe.
"This wasn't just a little problem on the fringes of the U.S. mortgage market," Geithner writes. "I had a sick feeling in my stomach. I knew what financial crises felt like, and they felt like this."
5. "THE ESSAYS OF WARREN BUFFETT"

If you want to get to know the way Buffett thinks, go straight to the Sage himself.


In this collection, he keeps it very real — in his signature folksy-intellectual fashion.
"What could be more advantageous in an intellectual contest — whether it be chess, bridge, or stock selection —than to have opponents who have been taught that thinking is a waste of energy?" he asks.

6. "JACK :STRAIGHT FROM THE GUT " by Jack Welch

In his 2001 shareholder letter, Buffett gleefully endorses "Jack: Straight From The Gut," a business memoir of longtime GE exec Jack Welch, who Buffett describes as "smart, energetic, hands-on."In commenting on the book, BloombergBusinessweek wrote that "Welch has had such an impact on modern business that a tour of his personal history offers all managers valuable lessons."
Buffett's advice: "Get a copy!"

7. "THE OUTSIDERS" by William Thorndike, Jr.

In his 2012 shareholder letter Buffett praises "Outsiders" as "an outstanding book about CEOs who excelled at capital allocation."Berkshire Hathaway plays a major role in the book. One chapter is on director Tom Murphy, who Buffett says is "overall the best business manager I’ve ever met."The book — which finds patterns of success from execs at the Washington Post, Ralston Purina, and others — has been praised as "one of the most important business books in America" by Forbes.

8."THE CLASH OF THE CULTURES " by John Bogle

 Bogle's "The Clash of the Cultures" is another recommendation from the 2012 shareholder letter.In it, Bogle — creator of the index fund and founder of the Vanguard Group, now managing $2.0 trillion in assets — argues that long-term investing has been crowded out by short-term speculation.But the book isn't all argument. It finishes with practical tips, like:
a)      Remember reversion to the mean. What's hot today isn't likely to be hot tomorrow. The stock market reverts to fundamental returns over the long run. Don't follow the herd.
b)      Time is your friend, impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market. That only seduces you into buying after stocks have soared and selling after they plunge.

9. "BUSINESS ADVENTURES :TWELVE CLASSIC TALES FROM THE WORLD OF WALL   STREET" by John BrooksBogle's "

 
The Clash of the Cultures" is another recommendation from the 2012 shareholder letter.
Back in 1991, Bill Gates asked Buffett what his favorite book was.To reply, Buffett sent the Microsoft founder his personal copy of "Business Adventures," a collection of New Yorker stories by John Brooks.Gates says that the book serves as a reminder that the principles for building a winning business stay constant. He writes:  For one thing, there's an essential human factor in every business endeavor. It doesn't matter if you have a perfect product, production plan and marketing pitch; you'll still need the right people to lead and implement those plans.The book has become a media darling as of late; Slate wrote that it's "catnip for billionaires."



61 comments :

  1. Thanks for this wealth of information sir!

    ReplyDelete
  2. Will read each and every of those.. So that I can gain atleast 10% knowledge of what you great investors posess :)

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  3. Thanks for the recommendation. Their is also a book called 'The education of a value investor by Guy Spier' very good book for investors.

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  4. Respected Sir,

    Please please reply on this as i want to buy the below stock

    IS V2 Retail a buy at this price.I can hold it for long term?

    ReplyDelete
    Replies
    1. Anonymous, please go through the earlier comments sir gave to others, as said still positive on V2 Retail hardly 2-3 days earlier.

      Delete
  5. Hi VP Sir,

    Just for learning process need to understand if some company promoters buy or sells share .... where can we find that data in BSE site.


    Example for Aimco you have provided the below link:
    http://www.bseindia.com/xml-data/corpfiling/AttachLive/Aimco_Pesticides_Ltd_250914_SAST1.pdf

    Hope to get answer.

    ReplyDelete
  6. i want to ask people in the forum, cant we marry fundamental and technical approach together to generate higher returns for investors!

    ReplyDelete
  7. Heartly thank you VP Sir...... i am buying each one of these.....the same student who asked you to suggest book a few days back :)

    ReplyDelete
  8. thanks for the reco can you tell whether we can buy kopran, marksan pharma and sudarshan chemicals at current rate for 6 moths

    ReplyDelete
    Replies
    1. 6 months ??

      I think , you are at a wrong place.

      Delete
    2. Your view on marksans for long term?

      Delete
  9. Sir,

    I have a questions. The books that you mentioned are all related to Wall street market. Will all the knowledge related to these books will be valid for Indian stock market as well?
    Also can you please provide more books related to Indian stock market?

    ReplyDelete
    Replies
    1. Books are for knowledge and to give a direction to one's thinking. Books are not recipes for higher return.

      Delete
    2. He did few weeks back. "The Thoughtful Investor" - by Mr. Basant Maheshwari. Just search it around in this blog itself.

      Delete
  10. Excellent suggestions. Thanks VP Sir. Where can we buy these Books. I will try in flipkart

    ReplyDelete
  11. Hi Sir,

    Could you please provide ur views on Sasken Communication.... the latest news corrected a stock price.. one can buy stock at CMP for long term,

    Regards,

    ReplyDelete
    Replies
    1. Anjan Lahiri's resignation is a set back.

      Delete
  12. Vpji, Have you changed your view on SUZLON from hold to Sell? Please don't skip the answer in round about way. I am holding as per your recommendation. Fervent request to you to cover/update on the laggards also.

    ReplyDelete
    Replies
    1. I don't think the current selling of FCCB converted shares are anything related with any negative change in fundamentals. But market price is a function of supply and demand , hence predicting a bottonm is not practical when the FCCB converted share holders are offering such a huge quantity at lower circuit on everyday.

      Delete
  13. Dear vp sir,
    I would like to know about your views on mcnally bharat engg co.i know they have huge debts. Is there any way to know that this debt had turned into npa like situation similar to the banks.promoters have started to release their pledged shares. thanks in advance for such noble job.

    ReplyDelete
  14. SIR Gud Mrg, I hve 250 shares of NDTV bought in 2008 & 2009 Sir Plz guide ant its future

    ReplyDelete
  15. Hi VP sir,

    I am a new investor and reading your blog is exciting. Can i ask your view on Prag industries. If you bullish then can you share value unlocking triggers and if bearish then your views are also welcome

    ReplyDelete
    Replies
    1. There is no company named Prag Industries listed , Page Ind and Praj Ind is there but I am not tracking both.

      Delete
  16. Dear VP,

    Could you kindly give your views on Sugar Pack. My view is over long term these could be multibaggers, given Sugar would be in permanent demand, and they have good carbon credits, and distillery as by products.

    While most of the companies are debt burdened, and policy on cane pricing a big issue, Govt cant let go indusrty go to dumps!

    The replacement costs for a sugar indusrty would be so huge and the stocks are trading at almost life time lows. Bajaj Hindustan, renuka and Balrtam pur chini.
    Kindly share your views if some one assumes interest rate cycles will surely peak out soon and cuts can be expected as early as 2015.
    regards
    ranga

    ReplyDelete
    Replies
    1. The issue is - raw material price and product price under govt control . I dont know why govt thinking price of sugar is more important than Petrol , rice or wheat !

      Delete
  17. Few more to add to the list of books
    - One up on wall street
    - Little book on valuation by Damodaran
    - The intelligent Investor
    - Margin of Safety
    - Poor Charlie's Almanack
    - The aggressive conservative investor
    - The Five Rules for Successful Stock Investing - By Peter Dorsey

    ReplyDelete
  18. Sir, your view on Adi Finechem, Balmer & Lawrie please.

    Thanks

    ReplyDelete
  19. Sir may i know your views on reliance ?

    ReplyDelete
    Replies
    1. Generally not tracling large cap stocks

      Delete
  20. VP Ji, Your view on stylam industries

    ReplyDelete
  21. Dear Valuepick! Kindly advise if the prospects of Paushak is still bright considering the run up along with others in the Industry like PI ind, Dhanuka etc. Whether it can scale up considerably considering its present business volume in the segment which is low. Warm regards!

    ReplyDelete
  22. Arrow coated Products : for a 250 crore Mcap company, 50PE and 16 PBV are very high valuations. However keeping in mind of the niche products it has,like to bet on as a take over candidate. can we buy this at this valuations for a 5 years period or need to wait for a correction before entering this script?

    ReplyDelete
    Replies
    1. I don;t know why people always taking decisons based on wrong data . Its EPS in last year was Rs.13.48 . At a price of Rs.214 . P/E is around 15 then what is the significance of 50 P/E ? .To get a P/E of 50 based in last year result ( as you mentioned) it should reach Rs.675

      Check the result in the below link


      http://www.bseindia.com/corporates/results.aspx?Code=516064&Company=ARROW%20COATED%20PRODUCTS%20LTD.&qtr=81.50&RType=c

      Delete
  23. Sir, what is your view on L & T Finance? I would like to invest in it with a 3 to 5 years time horizon. Can I buy it at cmp of 66?

    ReplyDelete
    Replies
    1. Nothing to comment about time bounded investment in any stock,

      Delete
  24. Dear sir

    Are u tracking Era Infra engineering ??

    Do u see any value in buying at cmp ?

    ReplyDelete
  25. Dear sir, Kindly advise on eco recycling, recommended price 25 in 2010. Thanks.

    ReplyDelete
  26. Hi VP Sir,
    I would like to know the best of these three. Please let me know your opinion.
    1. HBL Power Systems
    2. Easun Reyrolle
    3. EMCO

    Thanks
    Abhinav

    ReplyDelete
  27. Dear Sir,
    You had recommanded Nitco for long term view.It has a Pan India presence & good brand value.Do you think that Nitco Mangament is doing good effors to come out from loss & will gain glory of past in next few year.
    The asking of above question because I am holding few shares in my portfolio & are you tracking the company after reommanding the same
    Kindly reply your view.
    Regards

    ReplyDelete
    Replies
    1. Recovery depends on success of debt reduction efforts.

      Delete
  28. Sir I wud like to know your view on arvind remedies. Even if you r not tracking it then just want to know. . Why companies ( this company) pays dividend when it can use that money to repay huge debt and help to better earn their investor. .
    Now sir m not asking why it is doing. Juat your view what can be the motive. .

    ReplyDelete
    Replies
    1. Loan is in the books of company ,dividend going to the pockets of share holders and major share holder is promoter itself :)

      Delete
    2. Ohh yes thank you sir. Never thought that way. .

      Delete
  29. Hi VP Sir,
    Your views on Birla Precision Technologies. Its Networth:Debt ratio is fair. Also the company has a good Book Value around 24 with a CMP @ 3.11. Please give your suggestions if you have knowledge on this.

    Thanks
    Abhinav

    ReplyDelete
    Replies
    1. Not interested in any companies from Yash birla group

      Delete
  30. Hello sir
    Any view on ortin laboratories. Cmp@ 17/-
    Is it good as a long term bet ?

    ReplyDelete
    Replies
    1. What you find interesting in it ?

      Delete
    2. Sir to b frank I m not good at studying facts and figures..
      It was suggested from one of my colleague as a good investment as I am looking to invest in some company share in price range of 20/- 30/-..
      Ur views and study is excellent.
      So if not that than any other company u suggest to invest in for long term with its cmp in range of 20/- 30/-
      Any suggestion would b appreciated.
      Thanks

      Delete
  31. Please post your comments on VIP Industries. Waiting for your comment VP Ji.

    Thanks
    Shankar

    ReplyDelete
  32. Sir,
    What is your view on Tata Global Beverage and Tata investment corporation

    ReplyDelete
    Replies
    1. Tata Global is suitable for long term passive investors

      Not tracking TIC.

      Delete
  33. Sir, How long you ignore my question on Lactose India .I am looking for investment but only after your advice.Please...

    ReplyDelete
    Replies
    1. Whatever I know about this stock already shared with you in the below link


      http://value-picks.blogspot.in/2013/02/the-curious-case-of-lactose-india.html

      Delete

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