Yong-Long Lai

If you’re looking for a local copy (Perth, Australia) of The Intelligent Investor, you might want to try Boffin in the City. You can pick it up for $45 which is cheaper than all the other bookstores within walking distance to the CBD (that I checked).

Anyways, a few people has asked me, “why are you reading this book?. The answer to this is very simple… I was reading some old blog post from the Four Hour Work Week and I came across one particular post where Timothy Ferriss raced for the opportunity to ask Warren Buffet a question at the Berkshire Hathaway Annual General Meeting (AGM). Anyways the long story short, one of the many questions that was asked in that particular AGM was:

Q:What’s the best books to read for investing and life?
—

A1: (Buffet) Chapters 8 and 20 in The Intelligent Investor.

A2: (Munger) Anything by Ben Franklin.

I don’t know about you, apart from my ’studying’ days, nobody has ever recommended reading two chapters out of any book to me. Most people just recommend a book, but Warren Buffet is not anybody and he was deliberately specific (in my opinion). I Figured if Warren Buffet spent that extra second to point out two chapters out of a single book, I should at least make the effort to go read the two Chapters.

Anyways, for anybody who is curious about what’s Chapter 8 and Chapter 20 I better put you out of your misery.

• Chapter 8: The Investor and Market Fluctuation
• Chapter 20: “Margin of Safety” as the Central Concept of Investment