If you are a beginner in value or investing or a seasoned veteran, there are various ways to improve your skills in this stock market strategy! One major way to upskill is by reading various books, and that is exactly what we are going to cover today: the best books for value investing! These books will not only build your foundation but also teach you a few techniques that will helo you get higher value in your investments!
What Is Value Investing?
Value investing, to put it simply, is an investing strategy where you choose stocks whose prices have fallen due to some occurrence. It is believed that the stock market overreacts to anything good or bad related to the company. This leads to the prices fluctuating that does not relate to the company's fundamentals. Hence it helps you buy stocks at a price lower than normal, and you will be able then to sell them at a higher price for profit (This is businesss!).
If you are interested in investing but don't know where to start, then our guide on how to start investing will help you get started!
Which Are The Best Books For Value Investing?
Now that you know what value investing is and if you are interested in learning how to follow this investing strategy, there are many books for value investing in the market that you can read to help improve your skills! So, to make things a bit easier, we have compiled a list of the best value investing books! Let's dive right into it!
1. The Intelligent Investor
If you are looking to get into value investing, then you have to read The Intelligent Investor! This book for value investing is written by Benjamin Graham, who is the mentor of Warren Buffet. The book is divided into four sections, which explain everything there is about value investing; Part 1 explains the principles of value investing, while Part 2 teaches you risk management, asset allocation, and various strategies for investment! The teachings that The Intelligent Investor brings to the table make it one of the best value investing books!
2. The Only Investment Guide You’ll Ever Need
If you are lost on investing or need any help, then this is the only investment guide you'll ever need! This book for investing will teach you everything from the basics to tax strategies and a marketing strategy where you put the bulk of your savings in mutual funds and ETFs and no more than 20% into funds you direct. You will also find common advice on money, like credit cards, how to monitor your bank account, and a lot more! The best part is that even Mark Cuban (the guy from Shark Tank) has said that he has found this book the only investment book that made sense to him, making it one of the best books for value investing!
3. The Money Culture
Written by Michael Lewis in 1991, The Money Culture has been a value investing book that has been looked upon by many! The book has multiple essays that delve into various topics like greed, ambition, risk-taking, the impacts of money on people and society, and a lot more! The best part about this book is how it is written; you won't find yourself bored or confused while reading it. Lewis has written the book with humour, sarcasm, personal anecdotes, and insightful insights that will surely keep you invested, making it a great book for value investing!
4. Security Analysis
Known as THE book for value investing, Security Analysis was initially published in 1934, and it was written by Benjamin Graham (the author of The Intelligent Investor) and David Dodd! This value investing book creates the groundwork and philosophy of value investing, as its approach makes sure you understand the importance of buying stocks at a discounted price. You will find everything you need to get started, making it one of the best books to read as a student!
If you are looking for more books to read as a student, then we got you covered; our list of the best books to read for students will help you find the perfect read!
5. Value Investing: From Graham to Buffett and Beyond
Next on our list of value investing books is a book that will surely teach you the fundamentals of this strategy! Value Investing: From Graham to Buffett and Beyond is a book that consists of a few leading authorities on value investing and teaches you their fundamentals and also their applications through various people like Warren Buffet, Michael Price, and many more! This book for value investing is something you need to read if you are interested in getting into stock markets!
6. You Can Be A Stock Market Genius
If you are someone who is not well-versed in finance, then You Can Be A Stock Market Genius is a value investing book that will give you an outlook on investing. With an easy and simple introduction to value investing, you will gain an interest in finding undervalued stocks using the various techniques mentioned in the manuscript, making it one of the best books for investing!
7. Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor
Value investing has a history of providing excellent returns with minimal risks, and that is exactly what this book teaches you about! Margin of Safety explains the philosophy of value investing and even the logic behind it, explaining why it is important and where it succeeds while other strategies fail! If you follow the path laid by Klarman (the author), you are guaranteed the strongest investment success, making a value investing book for beginners.
8. The Dhandho Investor: The Low-Risk Value Method to High Returns
If you are looking for a framework for value investing, then The Dhandho Investor has got you covered! Written for the individual investor, this book expands upon the investing strategy devised by Benjamin Graham and others. In this book, you follow the Patels from India and how their Dhandho capital allocation framework could be applied in the stock market with value investing in mind and also be introduced to various new concepts! This makes the Dhandho Investor one of the best books for investing.
These were some of the top books for value investing that you should read if you are interested in stock markets and want high returns while investing not so much! One skill that you need while investing in finance, and if you want to brush up on your finance skills, then you should definitely get a short-term course on it! If you are not sure which course to pick up, then our guide on the best short-term courses in finance will help you get an idea!