Charlie Munger, Vice-Chairman of Berkshire Hathaway, developed his latticework of mental models by reading three leading textbooks on each subject. We can use the same approach for getting better at long term investing in marketable securities. But instead of three, there are twelve books that every investor should read and reread. I have read these books many times and I go back to them again and again before making an investment.
The most common thing that I hear from a lot of people is that they don’t have time to read. If you find yourself in that situation, I strongly recommend you to read finding-time-to-read. How long would it take to read twelve books? Let’s assume that each book has 350 pages. So in total you need to read 4,200 pages. If you read 12 pages every day then you can finish them all in one year. If you are an average reader like me then all you need is one hour every day for one year. The list of books are given below. After reading all these books you will definitely learn to look down before looking up i.e. avoid permanent loss of capital.