No. of Recommendations: 7
I am no expert and mileage will vary.
Whatever small bit I know, I learned at the feet of the masters. That is what i try to emulate, however haltingly.
"Investing is a subset of worldly wisdom." -- Charlie Munger, Words that made this man one of my heroes.
The first investment book ever suggested to me in 1996, by the GOAT, himself, was, The Intelligent Investor, by Benjamin Graham, both with the preface by Buffett and the edition with commentary by Jason Zweig
It took 6 months to read the fourth edition, the first time. Not my native language, though Chapter 8 made sense. The rest made sense 20 years later, the second time I read it--well, almost finished. Still not my native language.
Books on Charlie's worldly wisdom list, including those about Charlie and Warren:
The Psychology of Money, Morgan Housel
Damn Right! Janet Lowe (Foreward by Buffett) mainly about Charlie's contribution to the partnership
Warren Buffett Speaks, Janet Lowe
Popular Delusions and the Madness of Crowds, Charles Mackay
Against the Gods, Peter Bernstein
Since the annual letters are written for non-professionals, have him peruse those, especially from around 1999 and early 2000's so they will see good examples of chapter 8 in practice.
Have him look at old Youtube videos of Warren and Charlie to get a feel for their thought process and values, also real time events.
Yes, this is contextual research, which gives a person the ecology of mind to become a value investor, not a buy the dip or a drive yourself crazy trying to make a big buck kind of "investor."
Also, though I haven't done it, myself: I heard dollar cost averaging is very effective if you stick with it. I think Housel mentions it
and people like Jason Zweig also.
If nothing else, your friend will be wiser and smarter than he was. :)
