- Why Is it So Hard to Become a Good Investor?
- Best Value Investing Books
- 1. A Random Walk Down Wall Street by Burton G. Malkiel
- 2. The Intelligent Investor by Benjamin Graham
- 3. The Financial Diet by Chelsea Fagan
- 4. The Little Book That Beats the Market by Joel Greenblatt
- 5. Common Stocks and Uncommon Profits by Philip A. Fisher
- 6. Margin of Safety by Seth Klarman
- 7. The Little Book of Value Investing by Christopher H. Browne
- 8. The Little Book of Valuation by Aswath Damodaran
- 9. The Warren Buffett Way by Robert Hagstrom
- 10. The Dhandho Investor by Mohnish Pabrai
- 11. Value Investing and Behavioral Finance by Parag Parikhs
- 12. The Psychology of Money by Morgan Housel
- 13. Security Analysis by Benjamin Graham
- 14. Competitive Strategy by Michael Porter
- 15. Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing by Joel Tillinghast
- Becoming an Intelligent Investor Starts With Being a Bookworm
- FAQ: Value Investing Books
Reading one of the best value investing books isn’t the only way you can learn about this complicated trade – but it’s one of the most accessible!
While earning a degree in finance is probably the best way to learn more about this industry, that’s likely not a realistic option for the vast majority of people.
Instead, if you want to learn about value investing and how to become a better investor, you may want to consider reading about it from the experts. Don’t worry; we did the research for you and gathered up a list of the best value investing books worth reading. So, if you’re ready to further your knowledge on this complicated topic, let’s dive right in!
Why Is it So Hard to Become a Good Investor?
Investing is challenging – even for those of us who know what we’re doing.
From chasing top-performing stocks only to buy at the worst possible time to suffering from loss aversion, there are all kinds of factors working against the novice investor.
Not only that, but you need to have a decent income, financial literacy, and financial discipline in order to be a good stock investor.
While you’re probably already doing everything you can to boost your income so you can have enough to invest, the process of building financial literacy might often feel like you’re a dog chasing your tail.
Investing takes a long time to pay off – it’s not a get-rich-quick scheme. In order to become a good investor, you need to be able to ride things out for the long run. You also need to be willing to educate yourself.
Reading books on value investing and other aspects of the stock market is essential if you want to get ahead and stay competitive.
Best Value Investing Books
Whether you are a finance professional who wants to up your game to a Warren Buffet level or just an amateur investor looking to become more hands-on with your investments, we have you covered with our list of the best value investing books of all time.
1. A Random Walk Down Wall Street by Burton G. Malkiel
Written by Burton G. Malkiel, this book should be at the top of the reading list for any investor. Now in its twelfth edition, the book offers a no-holds-barred look at investing, covering everything from behavioral finance to stocks and bonds.
2. The Intelligent Investor by Benjamin Graham
Warren Buffett often cites this book as one of the best books ever written on investing – and thousands of readers have to agree. It covers all kinds of concepts that will help you build a foundation of value investing.
Benjamin Graham is often considered the father of investing, having popularized the concept of value investing itself. The mentor of Warren Buffett at Columbia Business School, Graham clearly knows what he’s doing – and he outlines his lessons clearly so that you can benefit from reading this book.Click Here For The Best Price
3. The Financial Diet by Chelsea Fagan
Less a book specifically about value investing and more about personal finance, this book is excellent for millennials looking for answers to any of their most pressing financial questions. It focuses on creating a budget, how to have awkward money conversations with your friends, and even what foods you should keep stocked in your kitchen to help slash your food budget.
Of course, it also takes a dive into investing, too. It’s genius!Click Here For The Best Price
4. The Little Book That Beats the Market by Joel Greenblatt
Are you looking for a quick read that will tell you everything you need to know about investing without boring you to tears? If so, The Little Book That Beats the Market is the one you need to add to your reading list.
You can easily tear through this book in one sitting. Author Joel Greenblatt will clearly explain the concept of value investing and how he goes about picking the winningest stocks. It’s a great place to start your reading and your education if you’re totally new to investing.Click Here For The Best Price
5. Common Stocks and Uncommon Profits by Philip A. Fisher
This updated version of the classic time takes a detailed look at investment philosophies that have serious staying power. From seeking out growth companies to learning how to practice the scuttlebutt method, this book was first published in 1958 and endorsed by Warren Buffett.Click Here For The Best Price
6. Margin of Safety by Seth Klarman
Margin of Safety was written in 1991, but despite being nearly three decades old, it contains principles that really stand the test of time.
As the title implies, it covers one of the most critical concepts in value investing – the margin of safety concept. The author uses margin to explain the philosophy of value investing and its strategy, offering up a blueprint that you can use in real life to give yourself a margin of safety. If you want to learn how you can keep your money while investing, Margin of Safety is the book for you.Click Here For The Best Price
7. The Little Book of Value Investing by Christopher H. Browne
If you want the quality of The Intelligent Investor but without having to read all 600 pages – did we forget to tell you it was 600 pages? – you should turn to The Little Book of Value Investing by Christopher H. Browne.
This book uses the analogy of supermarket shopping to explain the more complicated principle of buying stocks. It includes a variety of valuable investing concepts such as creating a margin of safety and the diversion of stocks – again, all without boring you to tears or requiring you to settle in for the long haul.Click Here For The Best Price
8. The Little Book of Valuation by Aswath Damodaran
A brief, yet comprehensive, book on value investing that you should consider reading is The Little Book of Valuation by Aswath Damodaran. This book was written by an acclaimed professor of finance at New York University’s Stern School of Business. Here, Damodaran teaches equity valuation and corporate finance.
If you’re looking for a longer read on the valuation concept, check out Valuation by the same author. It is more comprehensive yet will take you longer to get through. This book is a more succinct version that offers more or less the same information.Click Here For The Best Price
9. The Warren Buffett Way by Robert Hagstrom
Are you sick of hearing about Warren Buffett yet? The reality is that if you want to get ahead in investing, you need to learn how to do so properly – the Warren Buffett way!
You’ll learn all the necessary aspects of achieving success in investing, helping you learn tips that you can apply immediately to your own portfolio. It’s clear and concise, covering Warren Buffett’s early life and education so you can learn key finance takeaways by studying from the experiences of the very best.Click Here For The Best Price
10. The Dhandho Investor by Mohnish Pabrai
Written by Mohnish Pabrai, The Dhandho Investor will transform the way you think about investing. A simple, yet influential book, it’s based on the concept of low risk and high return. Written by an Indian-American investor, philanthropist, and businessman, it is a sensible book backed by solid principles and easy to follow case studies.Click Here For The Best Price
11. Value Investing and Behavioral Finance by Parag Parikhs
This book by Parag Parikhs, an Indian author, is often cited as one of the best value investing books in the world. It not only provides a nice purview of the basic investing topics that are covered by most financial websites, media, and books but also dives deep into areas that tend to be ignored.
A well-structured time, it contains just 12 chapters that cover topics such as:
- Behavioral Obstacles to Value Investing
- Contrarian Investing
- Index Investing
- Initial Public Offerings
12. The Psychology of Money by Morgan Housel
Do you want to learn more about how people think about investing and other financial concepts? It’s not a bad idea, if you do – understanding why we make emotional decisions surrounding our money is important if you want to make smart financial moves.Click Here For The Best Price
13. Security Analysis by Benjamin Graham
This book gives most of its author credit to Benjamin Graham, a Columbia Business School professor, but also lends author credit to David Dodd. The book highlights the principles of value investing, or the idea of buying stocks and holding them for lengthy periods of time.
If you’re looking for books endorsed by Warren Buffett himself, this one is a must-read. After all, after reading the book, Buffett contacted Dodd and asked to be admitted to Columbia’s business school. He wrote that the book was responsible for changing “his financial life” with its purchase. You can’t get any better than that!Click Here For The Best Price
14. Competitive Strategy by Michael Porter
Michael Porter digs deep into competitor analysis along with financial analysis in this book, showing you a more holistic view of the Five Forces Analysis Framework. You’ll learn more about the financial complexities that exist within numerous sectors – and also learn how to use those complexities to your advantage.Click Here For The Best Price
15. Big Money Thinks Small: Biases, Blind Spots, and Smarter Investing by Joel Tillinghast
Joel Tillinghast has built a name for himself in the finance world. An investor who worked at Fidelity, he has consistently and continuously learned how to beat the market for more than two decades. In reading this book, you will learn how to be an objective investor when handling your financial portfolio – even during uncertain or rocky times.Click Here For The Best Price
Becoming an Intelligent Investor Starts With Being a Bookworm
We all want to have the best chance of success when investing in stocks, bonds or other financial instruments. Learning from others’ experiences is one of the most effective ways to build a knowledge base and increase your odds for success.
The books on this list provide great insights into how you can become an expert value investor by reading what professionals like Warren Buffett read themselves!
Which book will you start with?
FAQ: Value Investing Books
What investing books does Warren Buffett recommend?
If you want to learn investing strategies from the best value investors – including Warren Buffett himself – you’ve got to consider books such as Common Stocks and Uncommon Profits and Other Writings, The Intelligent Investor, and Security Analysis. All of these books (along with many of the other books on investing strategies that we listed above) will help you become one of the most successful investors around.
What are good books on investing?
Each of the investing book options listed in our article will give you a birds-eye view of the best investment strategies that are used by some of the world’s top value investors. However, you’ll find quality books covering things like mutual funds, fundamental analysis, security analysis, and other investment strategies in titles like The Intelligent Investor, The Clash of Cultures, and The Essays of Warren Buffett.
What is the best book to value a company?
Some of the best books on stock and business valuation include Business Analysis and Valuation by Krishna Palepu, Modern Investment Theory by Robert Haugen, and Security Analysis by Benjamin Graham and David Dodd. The Intelligent Investor is another classic pick!
Is value investing dead?
Some investors will argue that value investing is dead, but this is one of those investment strategies that are here to stay. In 2020, value stocks underperformed growth stocks by a lot – meaning they were incredibly cheap to buy relative to their growth. Get started with value investing as soon as you can – this strategy isn’t going anywhere any time soon.