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

Pysh has created more than a book here. He has architected an informational community to smash the fears of investing that so many people have with a hammer of data, numbers and process that I personally was looking for. My biggest comment for potential readers like you is that you cannot only read this book if you expect to fully learn and undergo the phenomenal informational deep-dive that Pysh presents. You must take the time to read each chapter, follow up with each of the free videos that go through further explanation of the chapter, do the free exercises and examples, and use the free website for further information. This will take A LOT of time, but it's worth it. For many, taking meticulous notes may be a really good idea to centralize the key teachings they need. The free site also has a great discussion forum that is pretty active and gives even more information for people to develop a progressive understanding of the investment strategies. I want to underscore that all of this additional information on Pysh's site is FREE and work with the content in the book. You do not have to pay for anything, and there are no subscriptions. Having read many investment books in the past, this has been the best one. If you want quantitative facts and a desire to learn about what all the ratios mean that investors use, how they interact with one another, the importance of bonds, and more importantly how much publicly reported business financials inform, this is the book to go with. Yes, the issues with typos mentioned in some of the comments are true, and it made me skeptical about the attention to detail of the author at first. Though there aren't many typos, hopefully Pysh will have an opportunity to edit a second edition. I also read a comment here that Pysh isn't an academician or economist, so why should he be an expert or write this book. As a regular-Joe investor, I appreciate that Pysh learned this all on his own, tested and prodded the process he made, and connected the investment strategies of Buffett with those he teaches. It's what makes him be able to explain everything in methodical, simple ways so that people can understand them. For me, that speaks volumes about the credibility he brings. This book is so worth your money, as is the time you put into taking advantages of the supplemental information on Pysh's site that go with it.

This book is fantastic! I currently hold an MBA and I've studied all the great books on Warren Buffett and Ben Graham for the past 8 years and all I can say is that this is one of the greatest books on value investing that I have ever read. It's a very simple to follow book and the main points on value investing are clearly laid out and easy to understand. I wish I would have had this book 8 years ago when I was starting out in this field. Also, the videos on his website are awesome. The videos go into greater detail from what the book covers so you get a good overall complementary course between the book and videos. He also has a forum on his website where you can ask questions and he helps answer your questions. This book would make for a great high school or college graduation gift as it's a simple read and exposes you to value investing and understanding the difference between price and value. Price is what you pay and value is what you get. Also, I encourage you to read his recommended books that he recommends at the end of his book and on his website (The Intelligent Investor, Reading Financial Reports for Dummies, and The Bond Book) just to name a few.

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. But. 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.

Should be read by any serious investor, beginning or even experienced for refreshing one's knowledge. The book focuses on long-term value investing with stocks. But, even if one is a speculator with short-term thinking, I think such a person could benefit because this is such a good, including concise, presentation. The author shows how to value a stock and best time a purchase and sale. Rather than go into all the stock financial terms/data covered, I'll just mention one because if a reader just rembers one way to value a stock, I think makes the book worthwhile: PE * (Price / Book Value) < or = 22.5 to be considered a good value. Sure, other data should be weighed, but a pretty good starting point in selecting a stock for further research. Also included in the book are links to very good videos, to enhance understanding concepts in the book. Excellent stock investing book!

I have read the Security Analysis (multiple editions) and Intelligent Investor. They are classics. However, they are sometimes a bit dry to read. And reading those books and comprehending them take time. There is no shortcut to learning and I do not think this book even pretends to be a copycat of those books. Where this book really shines that it gives a very good (and actually pretty thorough) introduction to value investing. It is also very enjoyable to read - in fact, I cannot keep it down. There are free videos to boot. What's not to like? Do not expect any shortcut to make money, or suggestions on what securities to buy, or tips or tricks. This is not the book for that. But if you read this book, you will have an excellent introductory idea about what value investing is about and surely you can build on that. In fact, I will go so far as to recommend reading this book before you start reading Graham's works - I think doing so will help you understand Grahams book better. I am a software engineer working in the insurance industry and just finished my MBA corporate finance class. I am pretty well versed with financial analysis, investing and valuation. I learnt a few things from this book that helped me put things that were taught in my MBA class into perspective. I think the author did a phenomenal job with the book. The kindle version is only $2.99 - but do not let the low price fool you, I would pay 10 times as much happily for a book of this caliber.

The title of this book is misleading. Simply put, it's just not a guide to the three books mentioned. One would expect a guide book to thoroughly break down the more difficult books mentioned and explain them to the reader. Otherwise, any book on value investing could call itself a guide to any other book on value investing. Having said that, what this book does attempt to do is serve as a very elementary introduction to value investing. In fact, that's what the author should have titled the book: "An Elementary Introduction to Value Investing." Why this title? First, the author makes only cursory mention of "The Wealth of Nations", so there is absolutely no reason for it to be one of the books mentioned on the cover. Next, the author mixes different approaches to value investing. For example, although he is talking about Graham's books, he never mentions net-net stocks, a favorite of Graham. Yet, he talks about companies needing good long term prospects, very much a Buffett approach (which he got from Philip Fisher ("Common Stocks and Uncommon Profits") by way of Charles Munger). At the same time, the author is mentioning (without attribution) ideas from other modern financial authors. For example, his discussion on assets vs. liabilities is all Kiyosaki's "Rich Dad, Poor Dad." So, despite the misleading title, if you have never read a book on value investing then this book serves as a decent introduction. It is short and concise and breaks down key concepts into the most elementary language possible, often using easy to understand stories to illustrate the principles. This book is probably most appropriate for a young adult that you want to introduce to value investing.

Even for someone familiar with the concepts discussed in the book, I found it refreshingly accessible and useful. I bought the Kindle version of this book, which comes with links to the author's webpage that includes other learning aids. I highly recommend the book for the following reasons: 1. The technical concepts are accurately explained, so readers are getting an excellent discussion of basic finance and investing. 2. The style of the book is conversational (it covers complicated concepts such as bond value/interest rate relationships from the simple story of Billy's Lemonade Stand) and non-technical. 3. It marries the nuts and bolts of a business model with investing. It disabuses anyone from thinking of investing as another form of gambling. 4. The progression from simple to sophisticated concepts is well paced and with the online resources, forms a good self-study program. In the age of the television financial high priest whose claim to legitimacy is achieved by deepening the mystery of investing, Mr. Pysc has written a down-to-earth book that everyone who has a pension account, a college savings fund or brokerage account should read. At the very least, it would allow one to ask intelligent questions of our financial advisors.

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.

基本的な真実が書かれていますが、読みやすく理解しやすいのに、これで投資家になれるのだろうか？足りないのは知識というより別物なのだと理解しました。

I really enjoyed reading this book. I learned a lot without so much difficulty in following the explanation. Strongly recommend to learn quickly how to be great patient successful investor.

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.

A surprising find on Amazon. This book pays for itself with the money you will save from foolish investments. Many people invest based on their gut feeling or the direction of the market but that is the fool's way. In Warren Buffett's Three Favorite Books, Pysh explains how you can invest intelligently by teaching you the core concepts used by Buffett. The book is broken down into three parts and is further separated into a number of units. Each unit contains easy to understand examples to explain some of the more complicated concepts you would find in business and investment. The book also contains links to YouTube videos and interactive tools on his website that will help further reinforce the lessons learnt in the units. A great book for both novice and seasoned investors.

It has everything you need to start investing with quality, controlling your emotion. It gives you a good summary of Warren Buffet's way of investing. Thanks, Preston. Greetings from Brazil.