Warren Buffett’s Key Habit To Successful Investing
When the greatest value investor of modern times shares his key habit to successful investing, we’d better listen. It’s a habit that’s very easy to apply (I do it daily) but has a great impact on your life.
So what’s this key habit?
Well, when Warren Buffett was asked about the key to success, he pointed to a pile of books and said “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest. All of you can do it, but I guarantee not many of you will do it.”
If the key habit to Warren Buffett’s success is something as simple as reading (non-fiction), why shouldn’t we adopt that habit?
Warren Buffett is not the only successful person that has made a habit of reading. Here are some others that share reading as a habit for success :
- Bill Gates (Billionaire, Founder of Microsoft) – Reads about one book per week
- Mark Cuban (Billionaire businessman) – Reads more than three hours every day
- Elon Musk (Founder of Tesla, Space X and PayPal) – When asked how he learned to build rockets, he said: “I read books.”
- Mark Zuckerberg (Billionaire, Founder of Facebook) – Reads a book every two weeks
- Sir John Templeton (Billionaire Value Investor) – Brings reading material with him everywhere he goes
When I found out about that all successful people read as a habit to develop their skills, I decided to adopt it immediately. Today, reading is a habit that I is fully established in my daily routine and it helped me enormously in all facets of life. I have experienced that reading opens my eyes to see new perspectives and it made me a much better investor. My personal challenge is to read 2 non-fiction books each month.
PS: according to success.com, people who read 7+ books per year are more than 122% likelier to be millionaires than those who read three or fewer.
The great thing about reading is that you can learn from other people’s mistakes, so that you can avoid them yourself. And of course, you can learn from other people’s successes so that you can directly apply what they did.
Reading helped me become a much better investor and I don’t want to withhold this from you. Therefore, I will share the 5 best books about investing that I have read in my lifetime.
The Essays of Warren Buffett – Lawrence A. Cunningham
The Intelligent Investor – Benjamin Graham (may be a bit challenging for beginners, but definitely a must-read)
Common Stocks and Uncommon Profits – Philip Fisher
The Little Book That Still Beats the Market – Joel Greenblatt
I am 100% that even if you read just one of these books, you will be a better investor than you were before.