13 Best Value Investing Books

Best value investing books

Written by Aryan Agarwal

July 28, 2020

Want to start value investing and don’t know where to start?

Read these few exciting books about value investing in getting the hang of value investing or just visit my guide on value investing in getting the summary of the whole topic in a few mins.

For the old school people like me who still like reading books, I have compiled this guide about the best value investing books.

So here is the list of best value investing books without any particular order.

The best value investing books..

The Intelligent Investor by Benjamin Graham

The Intelligent Investor

Warren Buffett considers this one as the best book at any point composed on investing (check the cover with Warren Buffett’s remark). Also, I completely agree!! This book contains huge amounts of significant ideas to the foundation of value investing.

The writer of this book-Benjamin Graham is considered as the father of value investing. He’s broadly credited for promoting the idea of value investing among the investing community.

Circumstantially, he was likewise the coach of Warren Buffett at Columbia Business School. After graduation, Graham recruited Warren Buffett to work (and learn) in his investing firm.

Warren Buffett acquired the principles and concepts of value investing from Benjamin Graham, which later helped him to build an incredible fortune and becoming one of the best investors in the world of all time.

This book contains several time-tested lessons like trading vs. investing, the margin of safety, the concept of Mr market (the fictional manic-depressive character), different approaches for defensive and enterprise (aggressive) investors, etc.

Many investors like to think of this book as the bible of value investing.

Generally speaking, this is certainly extraordinary compared to other value investing books. For serious investors, this is an absolute must-read. If you need to assemble a solid value investing foundation, I’ll strongly prescribe you to peruse this book.

For those who don’t want to read the whole book, check out this summary of the book

Security Analysis by Benjamin Graham

security analysis

Shockingly scarcely any investment experts have painstakingly perused Security Analysis.

That is a mistake. Benjamin Graham establishes out the framework of significant value investing and afterward continues to disclose how to apply it over all asset classes. Some feel that because the principal release of this book was written during the 1930s that it is not, at this point, applicable.

Have confidence that today is similarly as significant as when it was first composed. There is quite a lot more in this contributing book than simply the net-net investigation that Benjamin Graham is now and again known for.

On the off chance that you study this book cautiously, you will construct your investment process on an exceptionally strong establishment.

For those who don’t want to read the whole book, check out this summary of the book

Rule #1 Investing

Rule #1 Investing

This book combines modern tools with Buffett-style investing and takes you step-by-step through the analysis process—a must-read for new investors and one of my favorite books in the whole list.

Phil Town is now a very wealthy man, but he wasn’t always. In fact, he was living on a salary of $4000 a year when some well-timed advice launched him down a highway of investing self-education that revealed what the true “rules” are and how to make them work in one’s favor. Chief among them, of course, is “rule #1”: “don’t lose money.”

Other rules are: don’t diversify…think like an owner, not an investor… never, ever be seduced into thinking the market is efficient. Town also believes strongly in “betting on the jockey,” putting your faith in managers who’ve proven their financial mettle.

For those who don’t want to read the whole book, check out this summary of the book

The Little Book That Beats the Market by Joel Greenblatt

The Little Book That Beats the Market

This is most likely the shortest book that I’ve at any point I have ever read on investing. You can easily finish the whole book in a single casual sitting.

In this book, the writer – Joel Greenblatt, clarifies the idea of value investing and his way of dealing with picking winning stocks. He likewise shares his methodology of ‘Magic Formula’ (that comprises of two financial ratios Return on capital and Earnings Yield), which helped him to pick generally solid companies seemingly year-after-year.

Overall, it’s a decent read and a brilliant spot to begin perusing on the off chance that you have never put resources into stocks.

For those who don’t want to read the whole book, check out this summary of the book

The Warren Buffett Way by Robert Hagstrom

the warren buffett way

I began reading this book since I’m a devotee of Warren Buffett and needed to become familiar with his value investing standards and methodologies. The book contains all the things that it guarantees.

Hagstrom portrays the essential perspectives to make comparative progress, like Buffett, that you can apply quickly to your own portfolio.

The beneficial thing about The Warren Buffett Way is the creator will, in general, avoid high blaming words that make it justifiable to anybody ready to learn value investment.

The book starts by presenting Warren Buffett’s initial life and instruction and furthermore talks about his first investment at 11 years old (and the exposure that he gained from it).

In the next part, the book covers his excursion of how he read ‘The Intelligent Investor,’ got impacted by the writer Benjamin Graham, and later wind up joining the Columbia Business School, just to figure out how to learn from Graham.

The book additionally makes reference to Charlie Munger, the colleague of Warren Buffett and the Vice-Chairman of Berkshire Hathaway, and how he impacted Warren Buffett’s investing style.

There are various key takeaways from this book on the management, capital market, and business, which can be applied to a wide assortment of investing techniques.

By and large, The Warren Buffett Way book is a positive guide that can assist you in deciding how to settle on basic choices while exploring any organization to contribute.

For those who don’t want to read the whole book, check out this summary of the book

Value Investing and behavioral finance by Parag Parikh

value investing and behavioral finance

This is probably the best book composed by an Indian writer that I, at any point, read. The book instructs the readers about the genuinely necessary things and topics that are overlooked by most money related sites, books, and media.

The Value Investing and behavioral finance book are very much organized and contains 12 sections.

Not many of the best ones are- Understanding behavioral traits, Behavioural obstacles to value investing, Contrarian investing, Public sector units, Sector investing, Initial public offerings, Index investing & Bubble trap.

On the off chance that you need to get a decent knowledge into value investing for the Indian stock market, at that point, this book is unquestionably must-read.

For those who don’t want to read the whole book, check out this summary of the book

The Little Book of Value Investing by Christopher H. Browne

the little book of value investing

When you have perused the long 600-pages of The Intelligent Investor, this book may appear to be a small one with influential comparative ideas.

In the book, Christopher Browne utilizes the similarity of general store shopping to clarify the idea of purchasing stocks. At a general store, both charming and modest items (marked down) are accessible.

It absolutely relies upon the purchaser’s conduct whether he’ll purchase a very costly item or will pick a discounted item. Only the value investors take the effort to dive into the market and look for items on discount.

There are various significant ideas in this book, like diversification of stocks, creating a margin of safety, preferring value over growth, shareholding, insider trading patterns. So forth that can assist you with learning a ton of value investing methodologies.

By and large, this little book will give you a great deal of value investing tips and tricks which can assist you in shaping your investing strategy.

For those who don’t want to read the whole book, check out this summary of the book

The Dhandho Investor by Mohnish Pabrai

the dhandho investor

The idea of Dhandho Investing changed how I take a look at investing. This is one of the most straightforward yet compelling books that I’ve at any point read. The book depends on the central idea of “Heads I win, tails I don’t lose a lot,” for example, ‘generally safe, exceptional yield.’

The writer of this book, Mohnish Pabrai, is an Indian-American Investor, businessperson, and Philanthropist.

He is the Managing Director of Pabrai Investment funds, investment finance dependent on the comparative model to that of Warren Buffett’s Partnerships during the 1950s.

Since origin in 1999, this investment support has given an annualized return of over 28% and subsequently has reliably beaten the S&P 500 Index.

Also, Pabrai’s plan to put resources into organizations with generally safe and significant yields bodes well. Isn’t the primary point of any venture is to get the most extreme comes back with limiting dangers?

In the book, The Dhandho Investor, Mohnish Pabrai plainly clarifies his idea of ‘okay and exceptional yields’ with the assistance of hardly any contextual analyses in the initial not many parts like Richard Branson of Virgin Company, Laxmipati Mittal of ArcelorMittal-world’s biggest steelmaking organization and barely anymore.

In general, this is an astounding book to develop the nuts and bolts of value investing standards. The book is very easy to peruse, and complex putting standards are rearranged straightforwardly.

For those who don’t want to read the whole book, check out this summary of the book

Warren Buffett letters to investors

warren buffett letter to shareholders

This isn’t actually a book yet an assortment of letters composed by Warren Buffett to his investors at Berkshire Hathaway. Warren Buffett has been composing these letters in recent years. Furthermore, if you blend all the letters, the learnings are more than that of 50 books combined.

Warren Buffett has never composed a book himself. Be that as it may, on the off chance that you are intrigued to gain from him, these letters to investors fill a similar need.

Gaining from the successes and errors of the best financial specialist ever is itself satisfying. In general, it’s the conclusive book summing up the triumphant procedures of the world’s most prominent financial specialist.

For those who don’t want to read the whole book, check out this summary of the book

The margin of Safety by Seth Klarman

margin of safety

This is one of the most suggested books online for value investing. It was initially written in 1991 and certainly contains many tried and true standards.

Avoiding loss should be the primary goal of every investor. The way to avoid loss is by investing with a significant margin of safety.

A margin of safety is necessary because valuation is an imprecise art, the future is unpredictable, and investors are human and make mistakes.

For those who don’t want to read the whole book, check out this summary of the book

The Little Book of Valuation by Aswath Damodaran

The Little Book of Valuation

A short yet thorough book to figure out how to value an organization, pick a Stock, and make profits. The writer of this book, Aswath Damodaran, is a Professor of Finance at the Stern School of Business at New York University (NYU), where he teaches corporate finance and equity valuation.

There’s likewise a long form of the valuation idea composed by a similar creator, named Valuation by Damodaran. Both these books are astounding to build the establishment of valuing stocks.

Plus, Aswath Damodaran is likewise very dynamic on his youtube channel (with over 72k endorsers), where he teaches valuation and business modeling. Don’t hesitate to look at his youtube channel here.

For those who don’t want to read the whole book, check out this summary of the book

Poor Charlie’s Almanack by Charles Munger

poor charlie's almanack

Charlie Munger is Warren Buffett’s partner and the Vice Chairman of Berkshire Hathaway. He is likewise an incredibly mindful investor whose experiences helped him create an astounding history.

He is known for his solid backing of utilizing mental models from different orders to settle on better venture choices.

This assortment of talks and different pearls of intelligence from Charlie makes certain to assist you with improving as an investor.

For those who don’t want to read the whole book, check out this summary of the book

One Up on Wall Street by Peter Lynch

One Up On Wall Street

Presumably, the most straightforward, pleasant, intelligent, yet exceptionally educative books that I read on investing. At first, I began with one up on wall street, at that point, fell in love because of how the writer portrays the stock market and wind up perusing all the three books composed by him.

Peter Lynch was a star mutual fund manager at Fidelity investments.

He had an astounding history on a steady normal yearly return of 29.2% over an extended term of 13 years when he dealt with the Magellan fund. During this period, the AUM of his fund, which was initially $18 million out of 1977, increased to $14 billion.

He is one of the rare fund managers who gave a genuinely decent come back to their investors for a long time in succession.

In his books, Peter Lynch shares his learnings as a fund manager and stock market investors. Every one of the three of Lynch’s books follows his good judgment investing methodology, which demands that singular speculators on the off chance that they set aside the effort to get their work done, can perform similarly also or far and away superior to the specialists.

A couple of the top suggestions given by Peter Lynch in his books are-

  • Invest in companies, not the stock market.
  • ‘Only invest what you could afford to lose without that loss having any effect on your daily life in the foreseeable future.’
  • There are a few qualities that are required for a successful investor. They are Patience, self-reliance, common sense, open-mindedness, tolerance to pain, detachment, persistence, humility, flexibility, willingness to do independent research, an equal willingness to admit to mistakes, and an ability to ignore general panic.

In general, all these three books composed by Peter Lynch will give you the ideas of putting money into a basic, sensible, commonsense, and replicable way.

For those who don’t want to read the whole book, check out this summary of the book

Conclusion

Reading these books will get you closer to your goal of learning value investing and then invest your money in the Warren Buffet way.

You will be on your way towards financial freedom.

Let me know if I missed any important book down in the comments.

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