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Warren Buffett Says Read These 3 Chapters and Become a Superstar Investor

November 15, 2011 5:22 PM EST
The Oracle of Omaha Warren Buffett gave some pretty simple advice for those looking to improve their investing acumen.

In an interview with the CEO of Business Wire CEO Cathy Baron Tamraz, a subsidiary of Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B), Mr. Buffett said if you understand chapters 8 and 20 of The Intelligent Investor (Benjamin Graham, 1949) and chapter 12 of the General Theory (John Maynard Keynes, 1936) "you don't need to read anything else and you can turn off your TV."

Chapters 8 in Graham's The Intelligent Investor is "The Investor and Market Fluctuations." In this chapter, Graham essentially argues that investors should not fall victim to market fluctuations and intelligence investors should buy when prices are below fair value and sell when they exceed fair value.

Chapter 20 in Graham's The Intelligent Investor is "Margin of Safety as the Central Concept of Investment." In this chapter, Graham said they investors should know what the value of a particular asset is and then pay less.

Chapter 12 of the Keynes' General Theory is "The State of Long-Term Expectation." You can read that online here.


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