Warren Buffett’s 3 Favorite Books: A guide to The Intelligent Investor, Security Analysis, and The Wealth of Nations (Warren Buffett's 3 Favorite Books Book 1)

Warren Buffett’s 3 Favorite Books: A guide to The Intelligent Investor, Security Analysis, and The Wealth of Nations (Warren Buffett's 3 Favorite Books Book 1)

Posted by jack_miller | Published a year ago

With 442 ratings

By: Preston George Pysh

Purchased At: Or $5.99 to buy

Did you know Warren Buffett, the world’s wealthiest stock investor, is quoted as saying three books have shaped his investment philosophy? For more than half a century, he used the information provided in these three books to go from nothing – to a massive $39 billion net worth. The three books that gave him this wisdom are: The Wealth of Nations (pub. 1776) by Adam Smith, Security Analysis (pub. 1934) by Benjamin Graham, and The Intelligent Investor (pub. 1949), also by Benjamin Graham.
In fact, Benjamin Graham was Buffett’s professor at Columbia and the most influential financial advisor he ever had.
So, have you ever tried reading Graham’s books? Many might agree the books are as exciting as listening to Ben Stein read the 30th page of The Wall Street Journal.
It is time we fixed that. Instead of keeping these billion-dollar secrets hidden behind thousands of pages of financial jargon, I wrote one simple guide – Warren Buffett’s Three Favorite Books.
If you’re looking for a guide that explains how the wealthy really think and buy assets, you’re in the right place. This isn’t a get-rich-quick book. Instead, this is where your investing techniques take a turn in the road. This book will teach you how to accumulate assets and become very wealthy over decades of wise decisions and proper asset valuation. The best part about the book is the methods are taught in an easy-to-follow and understandable scenario for all to enjoy!
A great book into the world of understanding numbers underlying business performance. The author has done a remarkable job of simplifying the complex world of value investing and security analysis for the layman. Book provides an overview of basic financial instruments such as Bonds, Stocks, Funds, and Indexes as well as goes into detail of how to calculate a business' intrinsic value. In addition, author also suggests benchmark values for key performance ratios such as a less than 15 for PE ratio, a <0.5 for D/E ratio, an expected 7% or more YOY increase on BV (per share), a <1.5 for current ratio and others. Besides helping the reader understand the world of investing, share mechanisms for making money, the book also urges - albeit very briefly - the reader to understand why make a lot of money and what it may mean to others who do not have as much. Author also provides videos to explain all the concepts in the book on his website, which further solidify learning.

The reason for giving this book one star short of five is that the author relied heavily on the layout of MSN Money website, which seems to have changed significantly since the publication of this book. There is no longer a navigation bar on the left hand side nor could I find a 10 year summary for various ratios on the site. I find it shortsighted on author's part to write a long lasting document against a short lived website design. Other than that, this book is really good.

- kareem_smith

$0.35 would be too expensive for this book. Another wannabe trying to profit from Buffett’s name. Misleading title. Copied. Regurgitated content copied and pasted into a thin excuse of a ‘book’ (sorry it’s ‘three books’). Like another reviewer said, Amazon should remove ‘books’ from these dishonest amateur authors masquerading as experts, blatantly exploiting Buffett’s name, and delivering nothing but copied and pasted content.
Instead of wasting your money on this, buy and read Essays of Warren Buffett. There are no easy paths. You need to dig in and read that. If a book appears too good to be true, it is.

- kaya_king

Knowledge is power, and investing knowledge is gold. This book gives it's readers such a wealth of investing wisdom, that by the time your finished with it you'll swear you will be investing like Warren Buffett in no time. The concepts are explained in a straight-forward and easy to understand style. And there are lots of online links in the e-book that will keep you busy for a long time. The most important investment of all, could be the one you make in yourself!

- elliana_lewis

This is not for people who know value investing and want insight into Warren Buffett's particular brand of value investing. It is, however, an excellent introduction to investing itself. The examples are clear, relevant and the pacing is excellent for beginners. I don't hang out with the B-meister so I can't say if Pysh's interpretation of the Buffett method is accurate or not. I've read Graham's Intelligent Investor and Mary Buffett's Buffetology and the core fundamentals are shared between the works. Pysh's interpretation is book value centric while Mary Buffett loves the term durable competative advantage and is more return on total capital.
If stocks are just things in your mutual fund or that thing you bought because it looked like a good deal, this book is an excellent entry into the world of investing.

- lachlan_patel

Yes, the title and marketing posture is shamelessly mercenary, calculated to cash-in on the Buffet name and brand.

Yes, the first section really and truly is about a kid running a lemonade stand.


I'm glad I bought and read the book.

Surprisingly, given the bait and switch of using Buffet's name and branding and given that his three "favorite" books are barely mentioned, their content not delved into, and serve only as launching points -- the author has written an honest and sincere book.

I'll repeat that: This is an honest and sincere book.

And useful.

If, like me, you grew up without anyone actually TEACHING you about money, let alone stocks and bonds, the extended and hookey lemonade stand metaphor actually works. You WILL learn the fundamentals of stocks and bonds by examining the kid's adventures in retailing lemonade. (Our schools still do not teach students about money. Osmosis is good for nourishing plants, but if you really want to help people avoid poverty and pain and dependency, teach them about money; what it is, why it is, how it can be used. This author seems to be attempting to do just that, and for those well-intentioned reasons.)

The author does the math, and breaks it down so you can do the math on yor own. You could of course read Graham's classic, The Intelligent Investor, and do the math on your own. But gee whiz, it is always easier faster and more efficient if you have a decent teacher to help you. And, if you're like me, you can read through the whole book (it's not too long) and then go back and do the math, applying it to the real world of companies you're considering investing in. (I do think it would be best to read Graham's Intelligent Investor BEFORE reading this book. Going to the source text first is almost always better than reading what has been derived from that source.)

All of this is my longwinded way of saying, if you are hesitating and not sure if you should buy this book, go ahead. Put aside its used car salesman title/marketing. The content (the author's work) is forthright, honest, transparent. (Besides, you have 14 days to return the book for a refund if your experience is different from mine!So what's to worry? Go for it. ;-)

PS: I haven't tried his videos yet, but probably will.

- brynlee_moore

i enjoyed reading this book. i had read the intelligent investor but found most of it complicated and confusing. the authors explanation of concepts from that book and others i had no idea about has made it easier to understand i'll definitely be reading this again and practising some of this concepts.

- daniela_myers

Poor writing skills and unnecessary references to videos. If I'd wanted to watch videos I'd buy video course. I guess, I'd prefer that instead of this book.

- liv_howard

I found it really easy to read, very clear and helpful, quite easy explanation of how to calculate intristic value.

- raymond_castillo

I found this book very easy to understand and not too long. It's going to take me a while to consolidate all the information but I'm sure it comprehensively covers all the need to know info so I will probably re-read it then move onto the second book in the series.

- rebecca_thomas

excellent book. Short and precise!

- kobe_walker

Really a good book that provides the details about what an investor should be looking in to to become a successful investor. I am a beginner and this book is really helpful.

- madalynn_martin

Good book

- michael_lopez

Initial and ending is average . The middle part is just copied from his other book “ buffet accounting “ I own both of his books ,,, but this book is total rip off and does not relate to the title . Lot of things I don’t like abt this book.
1) after every chapter or in middle of champers he say refer to my video this and that ,,, I mean if v have to refer the video then why we bother buy ur books ?? Totally pointless .
2) copies the middle portion of calculating intrinsic values are copied from his other book. I bought this book expecting it to be little different but it’s not.
3 ) title is misleading , this is no where near to all buffer books .

I feel cheated.

- elias_cox

I have not finished yet the book and accompanied online materials yet.
But I'm ready to say, that I like it. A lot of information I was not familiar with, well organized and well presented.
I would highly recommend the course and online materials to everybody who is interested in getting a general understanding of finances and Market.
Would like to make some additional comments.
I finished 35 chapters of online version of this book. I would call it additional materials. Information is interested and well presented.

The reason I degraded the book to 3 stars is, in chapter 35 author asks your for email address as a condition to provide you with
link to downloadable check list for stocks selection. I consider this information to be an important part of the book.
Requested email address was provided, without any response from the author. 2 times I sent him an email asking for this material, no reply.
The material is a part of the book.
In my eyes this behavior diminishes the value of the book and my trust in information provided. I marked it as 3 stars. To read or not, it's your decision.

- kairo_williams

Such a brilliant and easy book. It makes you understand key concepts with the help of story of a kid selling lemonade. That lemonade business is used to describe about key ratios in business. Download preview of the book and you will understand what i say. I have become a fan of this writer. I highly recommend this book for new comers and also to those who want to build concept on value investing. My most favourite book ever in my life will be this due to knowledge it gives. Highly recommend.

- scarlette_miller

Descubrí a Preston Pysh a través de su canal de youtube "buffetsstocks", que da nombre también a su sitio web.

Ante todo, sorprende como un ingeniero aeronáutico y veterano de la Guerra de Afganistán ha encaminado su vida civil hacia el mundo del value investing y el estilo de inversión de Warren Buffet.

Pysh tiene varias publicaciones en las que resume varias obras clásicas del Value Investing.

En esta en concreto, se resumen tres obras favoritas de Warren Buffett, entre ellas el Intelligent Investor de Benjamin Graham, una obra de por sí muy densa, que he tratado de leer varias veces y nunca he finalizado. El autor utiliza un estilo muy ameno. Para cada capítulo se remite a un vídeo publicado en su página. Todo gratuito. Para mí es una lectura muy recomendable para ahorrarse los originales.

- nico_gonzales

I didn't have the faintest idea how the finance industry works, mainly the stock market and bonds. After reading and hearing lots about Warren Buffet I decided to learn more about him. After struggling to understand the books he recommends, I came across the Warren Buffet's 3 favorite books on Amazon Kindle, and it has made it extremely easy to understand the basic fundamentals of Buffets books, not only translating them to layman terms but it also has digital links to video lessons that cover each topic of the book, also in a very to easy understand manner. I highly recommend it for anyone wanting to learn about the stock market but finding it hard to understand. In this book it is explained in very simple relatable stories. Excellent.

- dawson_myers

I found this book a great introduction to understanding value investing. I thinks it’s a good first read onto this subject and enough to get you going in order to start choosing shares.
The only downside is that the examples on how to use MSN website and other financial sites are a bit outdated. It seems to be hard to find statistics going back 10 years on MSN and other such sites. However if you dig around you can get this information.

- landry_alvarez

A great to start for your investment journey. I highly recommend reading this book for people that are planning to dip into the stock market. This book teaches you why you need to be patient, knowledgable, and emotional intact to be a successful investor.

- alistair_clark

Inhaltlich geht das Buch gerade nicht auf die Thesen von Warren Buffet richtig Dinge ein. Daher ist es sinnlos das Buch als Art Einblick bzw. kleine Zusammenfassung von den drei Lieblungsbüchern Buffets zu lesen.

Reasoning why this book got 1 star is the formatation of this book. Since I use LatEx for textediting everything looks really clean and nice. Sadly this book got formated by somebody who doesn't know anything about formating. Therefore (for me) its a horrible read.

- adele_ruiz

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