- Insider's Phil Rosen asked ChatGPT to share book recommendations for someone looking to become a better investor.
- OpenAI's language bot listed five titles, including two with ties to Warren Buffett.
As a markets reporter, I'm always looking to learn more about the topics I cover. I turned to OpenAI's viral language tool, ChatGPT, to see what books it would recommend for someone interested in investing.
Since I write about the stock market and regularly speak with Wall Street strategists, I entered this question: "Can you share your best book recommendations for someone looking to become a smarter investor in the stock market?"
ChatGPT generated a list of five books, including two that have ties to Berkshire Hathaway Chairman and CEO Warren Buffett.
'The Intelligent Investor' by Benjamin Graham
This is the first book ChatGPT listed with ties to Buffett: Graham was one of Buffett's mentors.
"The Intelligent Investor," first published in 1949, is considered a classic. Many — including ChatGPT — refer to it as the bible of value investing. One concept it touches on is how to determine the intrinsic value of a company.
'One Up On Wall Street' by Peter Lynch
Lynch writes about his experience as a fund manager in this book, which was first released in 1989. In plain language, he shares how to read financial statements and develop a winning stock portfolio.
'A Random Walk Down Wall Street' by Burton Malkiel
This book is about "efficient market theory and how it affects investment strategies," ChatGPT said.
Malkiel notes that the prices of various assets exhibit signs of a "random walk," which makes it hard to consistently beat the market. Passive strategies such as index funds, in his view, can produce more favorable results for most investors.
'The Little Book of Common Sense Investing' by John C. Bogle
Bogle, the founder of Vanguard, argues in his 2007 book that passive investing is a more reliable, winning approach than active management.
'The Essays of Warren Buffett' edited by Lawrence A. Cunningham
The second book ChatGPT listed with ties to Buffett is a collection of his annual letters to shareholders, revealing insights into his investment philosophy and many years' worth of correspondence with Berkshire Hathaway investors.
"These books provide a solid foundation for understanding how to invest in the stock market intelligently," ChatGPT concluded.