Warren Buffett’s formula for becoming smarter in life and investing is simple – “Read. A lot.”
“I just sit in my office and read all day,” he is often quoted to have said this.
I have seen a lot of investors, including myself, take this advice seriously. Though I don’t read all day, reading books – and a lot of them – seems a great way to build my learning.
My bond with books has grown so stronger over the years that now, just holding a book in my hands makes me feels smarter. 🙂
I don’t have a name for this bias, but our mind plays this funny trick with us often. Just after we buy a book, or pay for an education, we “feel” we have learned what lies inside it.
That is probably the reason most people I meet in my investing workshops want to get my recommendation for the best investing books to buy. We all feel smarter just by owning these books.
But the question is – Can you really become a smarter investor just by reading all these books, blogs, and other resources out there?
Is there something else you need more to become educated and smarter as an investor?