11 Best Value Investing Books that Can Make You Rich

If you want to know the very best value investing books, this article will be very helpful.

It reveals some of these value investing books that can really help you become more successful at investing.

 

You see…

For most of us, the morning alarm on our standard alarm clocks or smart device interrupts our wonderful dreams and jars into the beginning of a new day.

After meeting our personal needs and the needs of the family we are out the door and trudge off to work.

Hopefully, it is work that the individual enjoys but in either case, it needs to be done and in response to your hard work, dedication, and commitment of time you are paid a salary.

From yourself, you expect and demand that you work hard at your job and you expect others to do the same.

After all, you are an American and are hard-working and committed to doing the best that you possibly can.

Also, because you work hard for your money, you expect your money to work hard for you.

 

Importance of Investing in Investing Books

The importance of making your money work hard for you by investing in your rationale for not only living a comfortable life now but in anticipating your future retirement.

Investing should be an important part of your personal financial plan.

The plan includes putting aside money into a savings account, perhaps contributing to a money market or purchasing CDs, maxing out your contribution to your 401(k) or retirement plan.

You understand the value of money and what it represents in the expending of your time and energy to earn this money.

Being the personal financial savvy individual that you are you wish to learn more about making your money work even harder for you.

You want to learn more about investing.

Fortunately, there are a variety of individuals and resources that are willing to help you navigate the labyrinth of investing and help you to avoid going down a variety of dead ends.

Therefore, perhaps a look at some of the ten or more best value investing books is warranted.

 

Personal Story

When I first became keenly aware of my need to start planning financially for my future, I naïvely thought that investment was putting money away regularly in a savings account or money market account or purchasing a CD.

My first CD was purchased back in the late nineties when competitive interest rates were skyrocketing.

I thought that I was well on my way to being an investment guru and securing my financial future.

However, as with all things, life happens and especially as it affects our finances. The bottom fell out on the CD market.

Unfortunately, I still was sold on these investment vehicles.

However, one of the best money making books came my way in which I realized that I wasn’t even remotely approaching the proper plan of action as it related to investing the money that was earned.

I quickly realized, through my reading, that my interest rates being received didn’t even begin to address the cost of living factors realized each year and I was falling short.

Consequently, my thirst for investments has increased and my desire to learn is a continuing process by realizing the value of people who know what they are doing in regards to investing.

 

11 Best Value Investing Books that Can Make You Rich

 

1: Margin of Safety by Seth A. Klarman

In a sentence, the author shares with the reader the all-important focus of managing risk while investing in the stock market.

Coming from what may be the intent of some initial investors about making it big on Wall Street, this book cautions against such thinking.

The book, instead, enlightens the reader on not only how to invest in the stock market but investing a significant amount of deep thinking into investment actions.

The writing is not about the focus being on the meeting of your own financial goals or concentrating on the market’s anticipation of investment returns.

The focus of the author’s narrative is if the attainment of these goals requires risky investments or heavily depending upon speculation, then the market may be overvalued.

His counsel is not to follow the herd mentality in fear of losing one’s principal.

He affirms that the investor should focus on the downside of any risk taken and then consider the possibility of returns.

The book is divided into three parts.

The first part is entitled where most investors stumble; the second part is an explanation of the values of investing shared by the author and the third part deals with the investment process.

 

2: The Intelligent Investor by Benjamin Graham

The author, familiar with the negative aspects of Wall Street after the crash in 1907 and involving his widowed mother, doesn’t recommend the investor focuses on analyzing securities available on Wall Street.

Instead, he recommends the investor focuses more on personal rock-solid principles and attitudes of the potential investor.

Subjects of discussion include the minimizing of drastic losses, how to maximize investment opportunities for ongoing profits, and discussing the attitude of investors and the potential negative thinking of being self-defeated.

He emphasizes that the investor should be intelligent, stay the course, being in control, and have an open mind about learning new things.

As part of the discipline for the investor, they should be able to keep their emotions in check and to think for themselves rather than relying on others.

He emphasizes that a successful investor has more to do with their character rather than their IQ.

Also See: Best Reasons Why Success Is the Best Revenge.

 

3: Value Investing by Bruce C.N. Greenwald, Judd Kahn, and Michael van Biema

Segmented into three parts, the author defines what value investing is, sources of value investing, and investors who conduct value investing and their methods.

The book further offers guidelines on evaluating stock and further flushes out the various methods used by a variety of investors which span over multiple generations.

The definition of value investing is the purchase of stock at a price that has been discounted below its intrinsic value.

This gap between the price and the intrinsic value is defined as the “Margin of Safety”.

This margin attacks as a buffer and helps to absorb risk and mistakes due to the valuing of the stock and the related process.

 

4: The New Buffettology by Mary Buffett

This book is marketed as an important reading that should be coupled with the original book previously penned entitled “Buffettology.”

The book narrates the investment strategy that is utilized by Warren Buffett.

Of course, Warren Buffett is the world-famous investor whose golden touch and investment strategies catapulted him into the ranks of being a billionaire.

This writing focuses on Buffet’s strategy for investing and expanding the stocks that were considered or defined as being down.

Related: Best Warren Buffett Book Recommendations for Investors.

The book details to the reader how to read and put into practice financial information the way that Buffett does in looking at the financials of a company.

It is primarily a book in which the potential investor will seize various opportunities in the bear market in which quality stocks have not reached their full investment potential.

Through a variety of equations and investing formulas, as utilized by Buffett, the investor will be able to determine what to buy and what to sell at the appropriate timing.

 

5: The Aggressive Conservative Investor by Martin J. Whitman

The focus of this writing is a compilation of simple ideas presented to the reader and underscoring the importance of the investor depending upon their understanding of what is real as opposed to what may be perceived as it relates to the stock market.

The book helps the potential investor to assess their level of risk and teaches the investor how to analyze and evaluate stocks coming from the perspective of the owners that control the business dealings and finances of the trading company.

Another important assumption that is defined and affirmed is that the market’s reflected price on a stock doesn’t often reflect the actual or real value of that particular stock price.

The book is especially valuable for the interested individual about learning the basics of investing in stocks that are safe and affordable.

Also See: How to Stop Being Broke and Be Rich & Independently Wealthy.

 

6: The Education of a Value Investor by Guy Spier

The insights provided in this book were achieved when the author had lunch with Warren Buffett.

It was during that lunch that Warren Buffett revealed to the author important strategies as it relates to market share.

It would appear that the three major takeaways or lessons of this book include if a business that you wish to invest in doesn’t match your morals, it is important not to be involved with that business.

The second valuable insight obtained from this lunch with Warren Buffett was that investment not only involves money but investing in people as well.

Finally, the important takeaway was that when a crisis hits in the financial market, these are great opportunities for value investors.

 

 

7: Mastering the Market Cycle by Howard S. Marks

The focus of this writing concentrates on the market cycles demonstrated within the market.

The premise of the author is that these cycles drive the prices of the investment which in turn creates the demand.

The author believes that guaranteed success in the market is not about the gathering of accurate information, but about price.

Price is driven and informed by the market cycle.

Therefore, when correct assumptions are made about price and the disciplined investor invests accordingly, money can be made.

His conclusions are driven by his decades of insights drawn from his Oaktree Memos.

Also See: How to Make Money on the Road and How to Make Money as an Illustrator.

 

8: The Most Important Thing Illuminated by Howard Marks

The focus of this book is to disseminate ideas and challenge the reader’s way of thinking about investing.

The author, Marks, affirms that he wants the reader to come away from this book saying to themselves, “I never thought of it that way.”

Rather than focusing on how to proceed practically about investment and concentrate on returns, he focuses more on the risk associated with investing in the market and ways that risk can be mitigated.

The author emphasizes the importance of risk and its management, he talks about the dynamics of risk including the reality of it being interesting, risk being challenging, and a critical component of investing.

 

9: The Little Book of Value Investing by Christopher H. Browne

The focus of this writing is on value investing and not making investment decisions on emotions.

Value investing is defined as looking closely at companies that are undervalued and do one’s financial homework on their actual value.

The estimation of a company’s value can be determined by closely reviewing its financial reports especially the earnings and expenses of the company.

The formula for success, according to the author, is once the price of the stock of the company dips below 2/3 of its value, the author considers that a good moment to invest.

Once the investment is made then stay the course with that investment despite any decline.

He affirms that the market value of the stock always rises to the intrinsic value of that stock in time.

 

10: Security Analysis by Benjamin Graham & David Dodd

This narrative is an in-depth analysis of the world of investing. By some, it is considered classic writing about investing.

The teachings include the identification and introduction of several principal value concepts as it relates to the investment world.

The book discusses three important ideas as it relates to investing.

Those three ideas include discussing the difference between investing and speculating, how much the company is earning, and insights by looking at the balance sheet of a company.

Considered by many to be the “bible of value investing”, the reading of this book is highly recommended before one takes the plunge into the investment market pool.

Also See: How to Make Money on Freelance Site Upwork and PayTM Cash Earning Apps.

 

11: The Little Book that Still Beats the Market by Joel Greenblatt

Offered to the average hard-working individual to assist in making investment decisions, this is a compact and humorously written book, that offers a specific investing system to the reader.

The system has been put through its paces personally by the author and has proven to be effective.

The explained process and lessons revealed are vital to an effective investment plan. The proven plan is stated to require little maintenance.

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Conclusion

If an individual wishes to travel in uncharted territory, two resources will help that individual navigate the unexplored.

One way to do that is to get a hold of a map that will visually display the road or path that needs to be taken to get from point A to point B.

The other powerful option of traveling through the unfamiliar ground is to have a guide.

If an individual wants to start their travel through the mysterious land of investing or learn new tried and proven paths of reaching one’s investment destination, why not take a map and a guide.

By investing in value investing books, the investor wishing to make their mark in the market can intellectually, methodically, and confidently enter this mysterious land.