Does reading make you a better investor? Michael Batnick and Ben Carlson have addressed this question but I have my own take. 

Yes and no. Yes, you will know more about how markets, humans, and companies function. You can learn from others’ mistakes and the process the great investors developed. No, because you can’t out read the competition to create better investing results. Good luck out reading this guy. But reading is required.

It not because Buffet and Munger said you have to read, but it’s the only way to advance a conversation with other investors. Reading creates a base of knowledge that helps you to explore new ideas with other investors. If the other person in the conversation has to spend the entire time getting you up to speed on established ideas, the conversation is just a resuscitation of a Wikipedia page. 

I’m not saying that it’s required for each person to have read the exact same books in order to have a conversation about new ideas. Listen to an Invest Like the Best podcast episode with someone who isn’t in investing, and pay attention to all the different places the conversation travels. The Brian Koopelman or Brian Christian episodes are good examples of this. I doubt their bookshelves and Patrick’s look the same. But reading is the action that proves you are curious and open to new ideas. Reading allows you to gain the base level knowledge before taking action in the world. 

Having a high level of base knowledge also allows you view past ideas differently. As you build knowledge, you will start to look at older ideas differently and find new ways to apply them. You can also apply your perspective to someone else’s idea that might benefit them.

Base knowledge allows you to have a framework to understand other ideas.

Like most things, to be a good investor, you actually have invest in the market. But before you do, you need to read and learn so you understand what you are doing to create the feedback loop. The feedback loop is impossible to create if you first don’t understand what you are doing.

If you want to learn from people you have to do the work acquiring base level knowledge first. That is how you advance the conversation.

The views expressed are my own. They have not been reviewed or approved by my employer. Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining to your individual situation you should consult your financial advisor. Please read my disclosure page.