Warren Buffett's 3 Favorite Books

A guide to The Intelligent Investor, Security Analysis, and The Wealth of Nations

Framework

by

Preston George Pysh

2012

2012

A framework book that distills the value-investing principles shaping Warren Buffett’s investing style. It simplifies and explains the core ideas from three foundational works Buffett often cites—The Intelligent Investor and Security Analysis (both by Benjamin Graham) and The Wealth of Nations (by Adam Smith)—presenting them in an accessible, example-driven way.

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Jermaine's Notes

November 2025

Wanted to read The Wealth of Nations for years but found the original difficult, so I read this to grasp its core ideas. A great book for early investors with clear explanations of bonds, stocks, and yield. The chapters on valuing stocks and bonds were excellent. Takeaway: Cash flow from bonds is a tool to capitalize on stock market drawdowns. Learned about the Thayer method of learning—a self-teaching approach I already use but hadn’t known by name. Read 2012 paperback.

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Einstein of Money

November 2025

A biography of Benjamin Graham, the father of value investing, the only boss Warren Buffett ever had, and one of Buffett’s most influential mentors. The book traces the early hardships that shaped Graham’s worldview—his family’s financial collapse, his mother’s struggles, and the losses he suffered in the 1929 crash. These experiences fueled his drive for financial independence and led him to start his own investment partnership (i.e., hedge fund) and to develop the analytical framework that still anchors value investing today. His philosophy introduced enduring concepts such as intrinsic value, margin of safety, and the “Mr. Market” parable. The book also explores the contrast between Graham’s high professional ethics and the complexity of his personal life.
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