Warren Buffett, often called the “Oracle of Omaha,” is renowned for his investment prowess and voracious reading habits. The legendary investor has built his fortune through a simple yet powerful practice: reading extensively and thinking deeply about what he learns.
Buffett famously spends most of his day reading, consuming hundreds of pages daily from newspapers, annual reports, and books across diverse subjects.
His approach to reading offers valuable lessons for any book lover seeking personal and professional growth. While most people view reading as entertainment or casual learning, Buffett considers it the foundation of informed decision-making.
His reading habits have contributed significantly to his success as one of the world’s most successful investors, and his advice can transform how bookworms approach their reading journeys. Let’s look at Warren Buffett’s five specific pieces of advice for bookworms.
1. Apply What You Read: Turn Knowledge Into Action
Warren Buffett said, “The more you learn, the more you earn.” This quote captures his fundamental belief about reading’s purpose and his consistent emphasis on applying knowledge gained through reading to real-world situations.
Buffett doesn’t read for entertainment. He reads with intention, seeking insights to apply to investment decisions and business strategies. For instance, his extensive reading of annual reports directly informs his investment choices. This practical approach to reading sets him apart from passive information consumption.
For bookworms, this means shifting from simply absorbing information to actively seeking ways to implement what you learn. Consider keeping a reading journal where you note key insights and potential applications.
After finishing a book, ask yourself how the concepts might apply to your work, finances, career, relationships, or personal goals. Buffett’s success demonstrates that knowledge becomes valuable only when it influences your actions and decisions.
The key is developing a mindset that views every book as a potential source of actionable wisdom rather than mere intellectual stimulation.
2. Stay Curious and Persistent: Develop the Right Learning Temperament
At the 1998 Berkshire Hathaway Annual Meeting, Buffett shared insights about what makes successful investing and management possible: “What we do is not beyond anybody else’s competence. I feel the same way about managing that I do about investing: It’s not hard if you have a reasonable temperament and a lot of curiosity.”
This quote reveals Buffett’s belief that temperament and curiosity matter more than raw intelligence. His approach to reading reflects this philosophy. Rather than trying to read the fastest or consume the most books, he maintains consistent curiosity about diverse subjects and persistent engagement with challenging material.
Buffett has maintained this curious approach throughout his life, starting with his childhood fascination with business and investing. His reading habits demonstrate remarkable persistence, as he dedicates significant portions of each day to learning through books and publications.
For readers, this means cultivating genuine curiosity about subjects that interest you, even when the material becomes challenging. Develop regular reading schedules that you can maintain consistently rather than sporadic intensive reading sessions. Buffett’s longevity in investing and learning shows that persistent, curious reading habits compound over time, building a foundation of knowledge that becomes increasingly valuable.
3. Prioritize Reading for Knowledge: Make It Your Primary Daily Activity
Buffett famously describes his daily routine as simple: “I just sit in my office and read all day.” This isn’t an exaggeration. At Berkshire Hathaway’s headquarters in Omaha, Buffett dedicates most of his working hours to reading and thinking, starkly contrasting with typical executive schedules packed with meetings.
His reading materials include annual reports, trade publications, newspapers, and biographies. This dedicated approach treats reading not as a leisure activity squeezed into spare moments but as the primary tool for professional development and decision-making.
The lesson for bookworms is to prioritize reading in their daily schedule. Instead of fitting reading around other activities, consider structuring your day to accommodate substantial reading time. Create a dedicated reading environment free from distractions, whether it’s a specific chair, room, or time of day when you can focus entirely on books.
Buffett’s success demonstrates that treating reading as a primary activity rather than a secondary pursuit can fundamentally change the value you extract from books. When you prioritize reading for knowledge acquisition, you naturally become more selective about materials and more focused during reading sessions.
4. Focus on Quality Over Quantity: Let Knowledge Compound Like Interest
One of Buffett’s most quoted reading advice is: “Read 500 pages like this every day. That’s how knowledge works. It builds up, like compound interest.” This statement, made to students, illustrates his understanding of how knowledge accumulates over time.
The compound interest analogy is significant coming from Buffett, who built his wealth through the power of compounding returns. Just as money grows exponentially when returns are reinvested, knowledge builds upon itself when readers choose quality materials that connect and reinforce each other.
Buffett’s approach emphasizes depth and connection rather than consuming large amounts of information. He prefers reading sources like company annual reports over secondhand financial news, believing that primary sources provide more reliable and comprehensive information.
For readers, this means being selective about your reading materials. Choose books and sources that build upon each other, creating a web of interconnected knowledge. Revisit important concepts and authors to deepen your understanding rather than constantly moving to entirely new subjects. Quality reading that connects and compounds will serve you better than racing through numerous unrelated books.
The key is recognizing that knowledge, like compound interest, requires time and consistency to reach its full potential.
5. Learn from Diverse Sources: Read Broadly to Think Better
Buffett has explained his decision-making process by noting, “I read and think. So I do more reading and thinking and make fewer impulse decisions than most people in business.” This approach relies heavily on his diverse reading habits across multiple disciplines and sources.
His reading portfolio spans newspapers, annual reports, biographies, and books on history and business. This breadth helps him understand different perspectives and industries, contributing to his ability to make informed investment decisions across various sectors.
The diversity in Buffett’s reading serves a strategic purpose. By understanding different industries, historical patterns, and leadership approaches through books, he can identify opportunities and risks that specialists in single fields might miss. His investment success often comes from applying insights from one industry or historical period to different situations.
Bookworms can adopt this approach by intentionally mixing different genres and subjects in their reading. Don’t limit yourself to books within your professional field or preferred genres. Read biographies to understand leadership and decision-making, explore history to recognize patterns and cycles, and study different industries to broaden your perspective.
This diverse approach to reading helps develop what Buffett demonstrates consistently: the ability to think clearly and avoid impulsive decisions by drawing upon a broad foundation of knowledge from multiple sources.
Conclusion
Warren Buffett’s reading habits offer a masterclass in extracting maximum value from books. His approach transforms reading from passive entertainment into active knowledge-building that directly contributes to success.
By applying what you read, maintaining curious persistence, prioritizing knowledge acquisition, focusing on compounding knowledge, and reading broadly across disciplines, you can adopt the same principles that have served one of the world’s most successful investors.
The beauty of Buffett’s advice lies in its accessibility. You don’t need special talents or resources to read extensively and thoughtfully. Start by implementing one or two of these principles, building them into consistent habits over time.
Like compound interest, the benefits of quality reading practices grow exponentially, creating a foundation of knowledge that will serve you throughout your life, just as it has served Buffett throughout his remarkable career.