Foundational Books Recommended by Successful Investors and Entrepreneurs
II have often thought about this question – ‘what are the foundational books that successful investors and entrepreneurs read and learnt from?’. So, as I read books, listened to podcasts and interviews, I started compiling a list of books that they were recommending And that’s how this reading list was born.
This curated list of 120+ book recommendations come straight from some of the brightest minds, including Warren Buffett, Charlie Munger, Naval Ravikant, Jeff Bezos, Ray Dalio, Tim Ferriss, and others. These books cover various categories, such as Anthropology, History, Biographies, Critical Thinking, Marketing, Economics and others.
As Charlie Munger often said, multi-disciplinary thinking is needed for creating ‘lollapalooza’ (an effect coined by Munger where multiple mental models, biases, or tendencies work together to create an extreme outcome).
This reading list covers a broad range of disciplines that have a wealth of wisdom. I have not read a lot of these yet, but it keeps me excited that there is so much more to read and learn from Below is the full list. You can also download a PDF by clicking the Download button. below
Let’s dive into some examples of these must-read classics, which are highly recommended by multiple investors and entrepreneurs as foundational books in these categories.
Best Books on Business, Strategy, and Management
Good to Great by Jim Collins
A favourite of Warren Buffett, this book explores companies that transition from being good to truly exceptional. Collins’ research shows that companies that go from good-to-great focus on disciplined people, thought, and action, and their success is often driven by audacious goals, long-term thinking and continuous improvements, rather than one big, bold plan or strategy. It’s a must-read for anyone looking to understand how great companies thrive, not just survive.
The Innovator’s Dilemma by Clayton Christensen
Jeff Bezos recommends this book, which explores why large companies often fail to innovate and how smaller disruptors can capitalize on these opportunities. It’s a brilliant read for anyone looking to understand how disruptive innovations reshape entire industries.
In Search of Excellence by Tom Peters and Robert H. Waterman Jr.
This classic management book, recommended by many top business leaders, identifies the key characteristics of successful companies. It’s a foundational read for understanding what makes companies excel, focusing on principles like innovation, leadership, and customer focus.
These books will not only sharpen your strategic thinking but also provide practical, actionable insights into building resilient and successful businesses.
Best Books on Investing
If you are passionate about investing, these books are excellent resources for diving into effective investing philosophies, decision-making and risk management.
The Intelligent Investor by Benjamin Graham
A must-read for any serious investor, this book is a favorite of Warren Buffett, providing timeless wisdom on value investing and financial markets. Buffett often cites it as the best book on investing, offering practical advice on how to approach investing with discipline and rationality.
The Outsiders by William Thorndike
Recommended by Charlie Munger, this book profiles eight unconventional CEOs who achieved exceptional returns by focusing on capital allocation. Munger loved this book for its focus on thinking differently and thinking long-term about business leadership. It’s a valuable slice of wisdom not just for investors but also for CEOs, Board members, CFOs or anyone who is a capital allocator.
The Most Important Thing by Howard Marks
Warren Buffett endorses this book, which dives deep into risk assessment, market cycles, and the principles behind making smart investment decisions. Marks has a careful and disciplined approach to investing and risk management, which makes this book a fascinating read.
These books are foundational for investors, since they provide a framework for thinking about financial markets, investing and decision making.
Best Books on Critical Thinking and Psychology
Critical thinking and understanding human psychology are crucial for both personal and professional growth. These books will help you develop these essential skills:
Influence by Robert Cialdini
A favorite of Charlie Munger, this classic on the psychology of persuasion teaches you how people can be influenced—and how to use that knowledge ethically.
It’s an essential read for anyone in business or sales and provides deep insights into human behaviour and the psychological influence in decision-making.
Thinking in Bets by Annie Duke
Seth Godin recommends this book, where Annie Duke, a former poker champion, shares how she makes better decisions by embracing uncertainty.
This book helps refine in the decision-making process, encourages us to think probabilistically and assess risk effectively.
The Black Swan by Nassim Nicholas Taleb
David Einhorn recommends this book, which challenges the way we think about risk and highlights the impact of rare, unpredictable events. Taleb’s ideas helps understand the profound effect that outlier events can have, making it crucial reading for investors and entrepreneurs alike.
These books will help you think critically, make better decisions, and understand human behaviour—skills that are indispensable in all walks of life.
Best Books on History and Anthropology
Understanding the past can offer invaluable lessons for navigating the future.
It reminds me of the brilliant quote by Winston Churchill “The farther back you can look, the farther forward you are likely to see.”
That is more than enough reason to study history!
These 3 insightful books cover massive ground across history, anthropology and business history:
Guns, Germs, and Steel by Jared Diamond
Charlie Munger recommends this book, which examines the forces that shaped human societies, from agriculture to imperialism.
This book helps readers understand why certain parts of the world became more developed and influential, whereas as others remained stagnant.
The Lessons of History by Will Durant
Ray Dalio suggests this concise work on the enduring lessons that history offers, covering everything from economics to the rise and fall of civilizations. It’s a profound reflection on the patterns that have shaped human history.
Americana: A 400-Year History of American Capitalism by Bhu Srivanasan
This book is a deep dive into the history of American capitalism, exploring the economic, cultural, and political forces that shaped the country.
The book helps understand the roots of modern American capitalism and how the country’s economy evolved over the centuries.
These foundational books provide deep, insightful perspectives on the forces that have shaped societies and civilisations.
Charlie Munger’s Additional Book Recommendations
Charlie Munger his believed in the power of multidisciplinary learning, and hence his recommendations reflected a solid list of foundational books. Known for being a voracious reader, Munger read hundreds of books across a wide range of disciplines, from economics to psychology to history, constantly expanding his knowledge in various fields. His diverse reading habits and deep curiosity played a huge part in his success.
- Seeking Wisdom by Peter Bevelin
- How the Scots Invented the Modern World by Arthur Herman
- Deep Simplicity: Bringing Order to Chaos and Complexity by John Gribbin
Warren Buffett’s Book Recommendations
Warren Buffett’s picks offer timeless investment wisdom:
- Poor Charlie’s Almanack: The Essential Wit and Wisdom of Charles T. Munger by Peter Kaufman
- Business Adventures by John Brooks. Bill Gates called it “The best business book I’ve ever read.”
- Shoe Dog by Phil Knight
Berkshire Hathaway Book List
Berkshire Hathaway publishes a reading list annually. The below books have appeared on this list several times:
- Common Stocks and Uncommon Profits by Philip Fisher
- Where Are the Customers’ Yachts? by Fred Schwed
- Titan: The Life of John D. Rockefeller, Sr. by Ron Chernow
Whether you are an aspiring entrepreneur, a seasoned investor, or simply curious about personal growth, I hope this reading list helps you on your journey.
If you are just getting started or relatively new to investing, I would recommend reading the following 3 books in that order. This is how I started my journey, and I think these books are a phenomenal place to start the marathon of becoming a ‘continuous learning machine’.
- The Essays of Warren Buffett: Lessons for Corporate America by Lawrence Cunningham
- Richer, Wiser, Happier: How the World’s Greatest Investors Win in Markets and Life by William Green
- Good to Great: Why Some Companies Make the Leap and Others Don’t by Jim Collins
Which books were most influential in your investing or entrepreneurial journey? Let me know in the comments below, I will be happy to add it to my list!
