The Best Value Investing Books 2019
Value investing is something that many investors pick up in order to gain income later on. It requires investors to buy certain assets that are, in their book, undervalued, and then sell them at a profit once their value it “corrected” by the market.
Although it doesn’t sound like the hardest thing in the world, there’s certainly a lot to know about it if you want to be a successful investor in this area.
Having said that, there are moments when you just don’t know what to do, and everything seems hopeless. Thankfully, all hope is not lost, as there are numerous books written to help you during these moments and show you the light.
Since finding the right book is time-consuming, we did the work for you and researched some books to compile a go-to list for you. As a result, below you will find some of the best value investing books, so you can play on the market without any fear.
Robert G. Hagstrom: The Warren Buffett Way
If you’re not new in the investing world, you’ve most likely heard of Warren Buffett and his outstanding success in the investing area. He’s known to have a net worth of more than $86 billion, so this must mean something, doesn’t it?
The book’s title is already suggestive, and once you’re aware of who Warren Buffett is, the title is a sure way to convince anyone that they will learn the secrets behind the success.
Basically, the book shows his way towards the top, from the very beginning. It outlines his career and shows examples of how his investment techniques have evolved.
This brought him the much-desired success. Moreover, he also talks about the key decisions that he took, thus resulting in his unmatched performance.
That being said, Hagstrom wrote this volume thinking about all the people in need of a helping hand, and he presented the strategies that Warren Buffett has used.
In addition, he shows the “how and why” behind the selection of factors that contributed to his success.
This book is a useful tool for anyone who is looking to become a better investor. Would you like to taste some of the success that Warren Buffett has? In that case, this is definitely one of the best value investing books that can help you with that.
Aswath Damodaran: The Little Book of Valuation - How to Value a Company, Pick a Stock and Profit
Valuation is important to investors, regardless if they decide to sell, buy or hold. As such, this book is the one that guides you in everything related to valuation, so that you know what to do in any situation.
In the book’s pages, Damodaran explains the necessary techniques in a simple manner so that anyone can understand them.
So, you don’t have to worry about any complicated language that you will have to decipher – the wording is easy to understand even for beginners.
What Damodaran explains in his volume are the techniques you should use to make better investment decisions when you review stock research reports.
Moreover, the techniques are useful when you engage in independent efforts to value and pick stocks.
If you end up purchasing this useful guide, you will learn a lot about the fundamentals of valuation, which are the core factors that will start your oath to value investing.
The author doesn’t ignore any key concept. More than that, he actually develops models that are easy to understand, and you can use in a lot of cases.
Inside the book, you will also find examples and case studies. This will make it easier for you to apply the techniques, as you can also see how they worked in someone else’s case.
Additionally, the book includes an iPhone application that is meant to make the lessons of the book useable as soon as possible.
In case you were looking for a simple and understandable guide that is also practical, then you shouldn’t miss this book.
Seth A. Klarman: Margin of Safety - Risk-Averse Value Investing Strategies for the Thoughtful Investor
Many times, investors, especially new ones, become victims of their thoughts. This means that their dream of bathing in money is taking control of their minds, thus blurring their common sense considerably.
As a result, they fall prey to the fads of Wall Street. Basically, they end up making decisions that not only provide no amount of success but also affect them in the long-term, leading to economic loss.
Well, value investing is a strategy that lets you invest in securities trading at an appreciable discount from underlying value.
More than that, it has a long and good history of giving those using it amazing results, without a lot of risks.
However, nothing is easy at the beginning, which is why everyone needs some guidance from those with enough knowledge.
This book written by Seth A. Klarman is very useful as it explains the philosophy of value investing. You will be able to understand the logic behind it.
Through this, it’s much easier to see why it’s so successful, whereas other methods end in failure.
Klarman did an amazing job with this book, and if you want to understand value investing better and see it in a new light, you shouldn’t refrain from buying this book. It’s one of the best value investing books around.
Parag Parikh: Value Investing and Behavioral Finance - Insights into Indian Stock Market Realities
This volume was written by someone with over 25 years of experience in the financial sector – this means that the information must be really helpful.
It focuses on behavioral investing and talks about how one must control their emotions and focus on investing rationally and successfully.
In other words, we are living times when the market is tarnishing the investors’ confidence, thus giving them a lot of anxiety in the investing field.
The thing that comes as a solution to this is behavioral finance, as well as value investing. Basically, they allow investors to stay sane and take healthy investment decisions while being successful.
Having so much experience, Parikh has seen the investing trends in Indian capital over the past decades, so he knows what he’s talking about.
The book will show you how collective behavioral biases affect investment decisions, market vagaries, and returns.
Besides, it will show you how to spot the best investment opportunities, as well as the pitfalls in growth stocks, IPOs, commodity stocks, and many others.
All in all, it’s able to give you just the advice you need on how to avoid failure and do something that’s going to be beneficial for any value investing supporter. Without a doubt, this is one of the best value investing books out there.
Bruce C. N. Greenwald: Value Investing - From Graham to Buffett and Beyond
With a rating of 4.3 stars out of 5 on Amazon, this book is a very useful tool for whoever needs a hand in the value investing field.
Bruce Greenwald is one of the leading authorities when it comes to value investing, so you’d better not miss this book.
The book is very good at teaching anyone the fundamental principles of value investing, which are the starting points you should be aware of before you jump in.
Moreover, it can also teach you about the one investment technique that was always proven to be efficient, even over time.
Besides covering the general value investing techniques, the book also illustrates the applications through profiles of Mario Gabellio, Warren Buffett and other investors.
It’s a must-read for disciples of value investing, and it surely deserves its place on the list of the best value investing books you should read.
It aims to train you to become the best version of yourself in this field, by not only giving you useful techniques to use but also by showing you examples from successful investors. You shouldn’t miss it!
Best Value Investing Books: Conclusion
If you are in need of a useful value investing book that can boost your confidence and offer you some efficient techniques, then at least one of the books above will be of help.
Each one of them contains information that could improve your skills and offer you more knowledge, thus preparing you for what the market has to offer.
Whether you end up choosing one or more of the books on this list, you’re surely going to learn a lot from them.
Make sure to check out the list of the Best Financial Literacy Books now.
Value investing may be a good and less risky way to earn money, but you still need to know some basic things before joining the ride.