Joshua Rogers in Forbes says
“The art of investing is not about figuring out what has already happened. It’s about anticipating the future and creating the future that others will read about. In order to create something new, to invent a new product or idea, you need to anticipate where things are headed. That requires a mixture of certain habits of mind. You need to foster imagination, thoroughly understand the origins of past ideas, learn from others’ mistakes, talk to lots of people about ideas and test your hypotheses against people both alive and dead”
Creativity doesn’t come from glancing quickly at your Twitter feed. It comes from deep thought. It comes from voraciously reading books – long books that require focused attention.
Reading books is a way for you to communicate with and learn from the best thinkers that are writing today and that have ever lived. Reading is a time machine that allows you to acquire wisdom from the past and to analyze and imagine another person’s vision of the future. This is the fuel for the creativity engine. It helps a great investor anticipate, analyze and avoid missteps. “
Reading habit is very very important for success in investing. There is no investor without habit of reading who made his fortune in the stock market
Warren Buffett’s business partner Charlie Munger once said,
“In my whole life, I have known no wise people over a broad subject matter area who didn’t read all the time – none, zero.”
Below are some of his more comments on reading
You don’t have to pee on an electric fence to learn not to do it. Learning from other people’s mistakes is much more pleasant. The best way to do this is simple: When in doubt, read so you can learn vicariously.
We read a lot. I don’t know anyone who’s wise who doesn’t read a lot. But that’s not enough: You have to have a temperament to grab ideas and do sensible things. Most people don’t grab the right ideas or don’t know what to do with them
You could hardly find a partnership in which two people settle on reading more hours of the day than in ours
In my whole life, I have known no wise people who didn’t read all the time — none, zero. You’d be amazed at how much Warren reads — at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.
I don’t think you can get to be a really good investor over a broad range without doing a massive amount of reading. I don’t think any one book will do it for you.
Neither Warren nor I is smart enough to make the decisions with no time to think. We make actual decisions very rapidly, but that’s because we’ve spent so much time preparing ourselves by quietly sitting and reading and thinking.
“Go to bed smarter than when you woke up.”
Warren Buffett says,
“I just sit in my office and read all day.” When asked how to get smarter, Buffett once held up stacks of paper and said “read 500 pages like this every day. That’s how knowledge builds up, like compound interest.”
What investors should read ?
- Books on investing
- Industry reports
- Annual reports
- Econonomic surveys and reports
- Books on human psychology
Not getting time to read ?
Charlie Munger says “go to bed smarter each day” Why not start with reading 20 pages everyday before you go to bed. Try saving some time you spend watching TV, Movies, Shopping etc
Warning: Side effects of reading more may include (1) increased intelligence; (2) uncomfortable silence when someone asks you what happened on the cricket match last night ? (3) better ideas and (4) increased understanding of yourself and others.