Every investor seeks a way to get a little bit of an edge.
So many pundits and self-proclaimed investment gurus have tried to fill the void. So much TV time is devoted to offering that advice. Just think of CNBC with Jim Cramer's "Mad Money" and other shows that parse the markets.
But exactly whom do the big boys turn to when they need some guidance? We decided to take a look at what books investment gurus like to read. We started with Warren Buffett. In the next Best Books slideshow, we'll look at the reading list put together by Vanguard founder John Bogle.
The books on the list are a mix of offerings Buffett mentioned in a letter he wrote that accompanied Berkshire Hathaway's annual report–it even includes a look at the "Oracle of Omaha" himself–and the rest were part of list called "Warren Buffett's Three Favorite Books."
We've included Amazon.com's reader ratings and a reader comment for each book. Check out Buffett's 7 Best Books for Investors: 2013:
1. "The Outsiders"
The Tale: William Thorndike Jr.'s look at CEOs who got high marks for capital allocation.
Amazon Rating: 80 of 95 give it 5 stars, zero give it 1
Cogent Customer Quote: "Thorndike explores one of the 'mysteries' as to why some businesses, with good, but not necessarily outstanding operational performance have been able to create outsized shareholder returns over time." – Eric E. Chen
2. "Tap Dancing to Work: Warren Buffett on Practically Everything"
The Tale: Buffett helps a friend (Carol J. Loomis, the author) who published this collection of her Fortune magazine articles written throughout the career of the "Oracle of Omaha."
Amazon Rating: 49 of 101 give it 5 stars, 5 give it 1
Cogent Customer Quote: "The book provides an interesting timeline of articles chronicling Buffett's deals. In the earlier days you could see his notoriety wasn't present yet. Even though most Buffett followers will recognize most of the article topics, it is still interesting to read the in-depth reporting and general public thoughts of each deal at that time in history." – Randy.
3. "The Clash of Cultures: Investment vs. Speculation"
The Tale: John Bogle on shifts in long-term investing and what caused them.
Amazon Rating: 38 of 51 give it 5 stars, zero give it 1
Cogent Customer Quote: "Great expose on the world of finance, where less than 1% of investment funds are actually invested in companies, while 99% is spent gambling on whether the securities/markets go up or down. He shows that long-term investing in index funds will provide greater investor returns than speculation." – Robert Olson.
