Best Value Investing Books – 15 Top Reads

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. 

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! 

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. 

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.

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. 

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.

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.

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.

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. 

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. 

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!

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. 

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.

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.

Get Stock Recommendations that 5X the Market!

LEARN MORE

Motley Fool Benefits

• 2 Fresh Stock Picks Monthly
• 20-Year Track Record of Beating the Market
• Instant Access to Top Starter Stocks