Value Investing Books

After the 2008 financial crisis, many people have started to follow Warren Buffett’s style of investing. That is why people have been looking up value investing books on the internet.

Now that you’ve reached the right place, let’s first talk about what value investing is.

An investment strategy that requires picking up stocks trading at less than their intrinsic or book value is known as Value Investing. An investor who follows this strategy is called a Value Investor.

These investors are quick to pull out all those stocks that are expected to be underestimated by the stock market. They use various analysis tools like Financial Analysis, Technical Analysis, Fundamental Analysis, and many such instruments.

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They tend to stand out from the crowd and generally invest in quality companies for the long term. With the exponentially increasing popularity of Mr. Warren Buffett, many investors have been attracted to this investing style.

After you have a basic understanding of the investment strategy, let’s move ahead to listing the value investing books.

Best Books on Value Investing

Many beginners in the field look for the best books on value investing, which has brought them to this blog related to value investing books.

We have a detailed list of best stock market books on value investing for all these curious learners and investors who wish to learn this investing style. So, without any more delay, let’s dive into the books.

The Intelligent Investor | Benjamin Graham

If you are a Warren Buffett fan, you must be kidding not to know Mr. Benjamin Graham. He’s the ‘Father of Value Investing,’ and he was a professor at the Columbia Business School. The Intelligent Investor was authored by him and was published in 1949.

He is a well known American Economist who is credited with many cutting edge concepts. These concepts have helped his followers climb the ladder of success in the investment world.

Graham has elaborated on multiple principles and strategies for a safe investment while avoiding huge risks. Modern-day investors still use his techniques of value investing to earn large profits.

This book is one of the best value investing books of all time. Every concept is explained with the help of real-life examples that help in understanding the financial world better.

Further, some essential details about the book are as follows:

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Value Investing and Behavioural Finance | Parag Parikh

This book was authored by Mr. Parag Parikh and was published in 2017. A discussion around the value investing books would be incomplete without this saying – “When others are greedy, be fearful, and when others are fearful, be greedy.”

Value investing works on this very simple principle. When the market is taking an unprecedented lap (upward or downward), this book works as an antidote to investment anxiety and guides investors towards rational and safe decisions.

Value investing books talk about investment strategies and cover market sentiments, crowd behavior, and psychology of the value investor. It also helps alert the reader about the bubble or crisis and how to avoid its repercussions.

This book also advises you on the process of spotting investment opportunities and pitfalls in various financial segments. Further, this book is a must-read for lay investors, portfolio managers, students, stockbrokers, bankers, and fund managers.

Further, some essential details about the book are as follows:

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The Dhandho Investor | Mohnish Pabrai

The Dhandho Investor has been authored by Mr. Mohnish Pabrai and was published in 2016. The book provides a comprehensive framework for every value investor in an accessible and straightforward manner.

This book that is part of the list of value investing books is a guide that expands elaborately on the exceptional principles of value investing proposed and practiced by Benjamin Graham, Warren Buffett, and Charlie Munger.

The most important concept discussed in the book is – “Heads, I win! Tails, I don’t lose much!” You’ll get a brief insight into the Kelly Formula that assists you in investing in undervalued stocks.

In an entertaining way, Pabrai has laid down the Dhandho framework in a straightforward format, and an investor who adopts it is undoubtedly going to improve on their results. These will also help him in beating the market and most professionals.

Further, some essential details about the book are as follows:

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The Little Book of Value Investing | Christopher H. Browne

This book is authored by Mr. Christopher H. Browne and was published in 2006. The Little Book of Value Investing can be considered as a concentrated version of The Intelligent Investor, as you’ll find powerful matching concepts here.

The author explains the concept of buying stocks by using the supermarket shopping analogy. Just like a supermarket, highly expensive and cheap shares are available in the stock market.

It takes the right buyer (value investor) with excellent buyer behavior to make an effort to dive into the market and look for items that are high quality but cost less.

In the case of the stock market, it’s only the value investors who have the temperament and patience to do so. These characteristics can be developed by reading the value investing books related to its psychology.

The book talks about diversification of stocks, preferring value overgrowth, creating a margin of safety, insider’s buying or selling pattern, shareholding, etc. You’ll learn many strategies via these simple concepts.

Further, some essential details about the book are as follows:

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Value Investing: From Graham to Buffett and Beyond | Bruce C. Greenwald, Judd Kahn, Erin Bellissimo, Mark A. Cooper, Tano Santos

Some of the best global investors have authored the book on the value investing journey – Mr. Bruce C. Greenwald, Mr. Judd Kahn, and Mrs. Erin Bellissimo, Mr. Mark A. Cooper, and Mr. Tano Santos.

The latest edition of the book will be published in 2021, and the first edition was published in 2001. The book is assigned by many professors in business schools and is available in five languages.

This book is a worthy mention in the list of value investing books as it has been put down by practitioners of the trading style from across the globe.

The latest edition is adapted to the recent events and occurrences in the economy and investment world. The foundation of this book was laid when Mr. Bruce Greenwald was taking Value Investing courses in the Columbia Business School.

The most significant setback in the investing world is trying to stay on the right side. The steps of being there are straightforward – search for capable securities, value them correctly, conduct research, and wrap it all in a risk management practice.

With risk management, the chances of losing your capital are reduced. The most significant addition to the latest edition is more than two chapters on the valuation of growth stocks.

This aspect of investing has always been a massive issue for investors who follow the Graham and Dodd tradition of investing. The book also contains some selected letters by Warren Buffett.

Further, some essential details about the book are as follows:

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Invest Like Warren Buffett: Powerful Strategies for Building Wealth | Matthew R. Kratter

Mr. Matthew R. Kratter authors this book about investing like the king of value investing – Mr. Warren Buffett. The author has studied and observed Buffett for more than 20 years.

Thus, over time, he has funneled Buffett’s insights into an elementary and straightforward program. These insights have been penned in easy to understand language. 

His observations on Buffett – the man himself, make it worthy of its mention in the list of value investing books. This book discusses the following topics:

• Best time to buy stocks
• Avoiding investment pitfalls
• Compounding wealth like Warren Buffett
• Tricks for decoding financial statements
• Understanding the difference between a mediocre and great business
• How much to pay for a high-quality stock
• Earning profits from the Buffett approach

This book is a fantastic guide for beginners in the world of value investing as it will help you speed up the learning process.

Further, this book highlights the simplistic investing strategy of Buffett in a way that even an investor with no intent to practice value investing will start practicing it.

Further, some essential details about the book are as follows:

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The Warren Buffett Way | Robert Hagstrom

The Warren Buffett Way is authored by Mr. Robert Hagstrom and was published in 2013. The earlier editions of the book talked about an in-depth analysis of the innovative investment and business strategies.

These strategies have been behind the spectacular success of Warren Buffett. The latest edition discusses the latest investments by the flag-bearer of Value Investing – Buffett.

These inclusions have increased the distinction of this book and thus is seen among the best value investing books.

The most significant inclusion in this edition is the ways to think like a long term investor, averting loss, and facing enormous obstacles. Also, this book guides you in becoming rational in the course of the ups and downs of the market.

According to the author, the greatest challenge in value investing is to stick with your investments in tough times and not to select the right stocks. Further, it gives readers tips to master the principles and understand the psychology of value investing.

Further, some essential details about the book are as follows:

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Security Analysis on Wall Street | Jeffrey C. Hooke

The book is authored by Mr. Jeffrey C. Hooke and was published in 2010. It is an insight into security analysis and business valuation of Wall Street, Corporate America, and international businesses from an insider’s perspective.

The book covers many aspects of the market – the growth of private equity and hedge funds, major market crashes, numerous scandals, and other related developments and situations.

These developments have altered security analysis in a massive way and thus necessitated a new edition. It is considered a continuation of the famous book – Security Analysis (authored by Graham and Dodd).

The book is an excellent resource as it has been compiled by an investment banker, international institutional investor, and private equity executive. The book is full of several examples and case studies to support itself.

It is a very important book for people who wish to have a solid foundation for these critical but complex finance topics.

Further, some essential details about the book are as follows:

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Warren Buffett Account Book: Reading Financial Statement for Value Investing | Stig Brodersen, Preston Pysh

This book has been authored by Mr. Stig Brodersen and Mr. Preston Pysh and was published in 2014. It is the second part of a three-book series – Warren Buffett’s three favorite books.

The reason why it is among the best value investing books is that the book teaches you how to select the right stocks and calculate their intrinsic value using two methods.

Further, in the latter half of the book, you’ll learn how to read income statements, balance sheets, cash flow statements, and interpret critical ratios in detail.

Further, some essential details about the book are as follows:

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The Little Book That Beats the Market | Joel Greenblatt

The Little Book that Beats the Market is authored by Mr. Joel Greenblatt and was published in 2010. The author is already famous for his classic finance literature, published back in 2005.

The method to outperform the popular market average by applying a systematic and straightforward formula is explained in this book. This formula seeks profitable businesses that are available at significantly lower prices.

The book includes data and analysis of the financial crisis and a model performance according to the writer. It explores the basic principles of successful investing in the stock market in a convenient way.

Further, by the end, the book reveals a time tested formula by the author. This formula automates the process of buying above average companies at a below-average price. The book is considered to be among the best and most straightforward guides to value investing.

Further, some essential details about the book are as follows:

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Warren Buffett Letters to Shareholders

The beauty of this book lies in having no author but a compiler. The book is a collection of the letters written to the shareholders of Berkshire Hathaway Inc. by the owner of the company and Badshah of value investing – Mr. Warren Buffett.

Warren Buffett took control of this small textile company back in 1965. The price of one share was $18 then. Later, he sent 50 letters to the shareholders, and that share traded at $2,26,000.

This translates to compounding investor capital at 21% per year, i.e., a multiplier of 12,556 times. The book might not be a book in itself, but these letters might guide you more than any other value investing books.

This book is a compilation of unedited versions of letters written for the last 50 years. In addition to everything, Warren has an incredible willingness to share his way of investing with his students.

When there are millions of books on his ideology and trading style, this compilation provides you with the original behind the scenes of Warren’s strategies and execution.

Some features that make this book stand out from this list of value investing books are listed below:

• Includes letters from 1965-1976 that are not available on their official website.
• Person index
• Topics index
• Company index
• Tabulated letters for easy navigation
• Charts of growth of Berkshire Hathaway

Further, some essential details about the book are as follows:

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Conclusion

The list of value investing books is never-ending since the investment style is gaining immense popularity among the long term stock market investors. But, via this list, we have tried to provide the best of books about value investing.

You might be a beginner or professional in value investing; these books are distinguished resources. These have one or the other information that is necessary to step into the market with extreme confidence.

Even if some books talk about the same concepts, they vary in their presentation of the kind of language used. We hope this exhaustive list of value investing books guides you to unmatched profits from the stock market.

Happy reading!