“Guys, I heard Warren Buffett bought a Greek Island. Is it true? Not sure, let’s Google it!”
If I had a dollar for every time I heard someone say “Google it”, I could afford to buy the island right next to Buffett’s one. We live in an age where we have a world of information available to us through a simple keyword search. Searching for “value investing” in Google, delivers around 28 800 000 results in only 0.38 seconds. That is impressive, but do you always find the quality of material you seek? Not entirely.
Scrolling through millions of results can be a daunting task. You might never find exactly what you are looking for. Yes, the internet is a quick and easy tool to find a broad range of subjects. However, books will always be more valuable to investors searching for specific information, covered in granular detail. The quality of research you gather from the internet doesn’t compare to reading books written by investment gurus with first-hand experience and years of accumulated wisdom.
We identified several classic books on investing that will teach you everything from the fundamentals to security analysis and valuation, which metrics to trust or ignore and more. Our list of favourite must-read books aimed at value investors will empower you to invest successfully over the long term.
1. The Intelligent Investor by Benjamin Graham
At the top of our list is none other than the value investing bible, written by the "father of value investing", Benjamin Graham.
In a nutshell, his philosophy of value investing shields investors from substantial error and teaches them to develop long-term strategies. The book offers no get-rich-quick schemes, guarantees nor gimmicks but overflows with wisdom on how to properly manage your investment portfolio.
According to Warren Buffett, it is “the best book on investing ever written” and deserves a spot on your bookshelf. Read our other blogs for brilliant Benjamin Graham quotes and insights from The Intelligent Investor himself.
2. One Up On Wall Street: How to Use What You Already Know to Make Money in the Market by Peter Lynch
This book has sold more than a million copies, a number that speaks for itself. The legendary mutual fund manager, Peter Lynch explains how you, the average individual investor, can beat the pros by using what you know. Lynch is of the opinion that there are investment opportunities all around us. Paying close attention to the best opportunities can give you a great advantage above the professionals.
Lynch also offers easy-to-follow advice for sorting out the long shots from the no-shots.
3. Common Stocks And Uncommon Profits (1958) by Philip Fischer
Another book highly recommended by Warren Buffett. Common Stocks And Uncommon Profits is a portrayal of Philip Fischer's mastery of all concepts related to successful long-term investing. He leaves few important topics uncovered, and his assessment of the behaviour of the financial community remains valid, despite being penned some 67 plus years ago.
This book is perfect for the value investor seeking long-term growth stocks.
4. Stocks For The Long Run (1994) by Jeremy Siegel
If you have ever doubted the potential performance of value investing, you should read this book. It is a comprehensive and highly readable history of the stock market that dramatically supports the case for long-term equity investments.
His approach to investing and the overall feel of the book is captured in the following excerpt, "The principle of this book is that through time the after-inflation returns on a well-diversified portfolio of common stocks have not only exceeded that of fixed income assets but have actually done so with less risk. Which stocks you own is secondary to whether you own stocks, especially if you maintain a balanced portfolio."
5. The Little Book That Still Beats the Market by Joel Greenblatt
Do you want to achieve 40% annual returns like Joel Greenblatt’s investment firm has done over the last twenty years? If yes, then this book is for you. As unbelievable as it might sound, you can learn how to double the annual returns of the stock market averages. Best of all is you can do it by yourself. With low risk, without any predictions and with a step-by-step, time-tested and proven “magic formula” that uses only common sense and two simple concepts.
The Little Book That Beats the Market shows how successful investing can be simplified for investors of any age.
6. Super Stocks by Ken Fischer
Ken, the son of the legendary Philip Fischer, is a guru in his own right. His book, Super Stocks, teaches investors how to use innovative techniques and fundamental analysis for valuing stocks and predicting future profit margins.
This book will give you valuable insight into Fischer’s unique take on investing in the stock market.
7. Common Sense on Mutual Funds: Fully Updated 10th Anniversary Edition by John Bogle
This book is different from the rest as it covers the fundamentals of mutual fund investing in today's choppy market environment and offers timeless advice on building an investment portfolio. With this updated edition, Bogle takes yet another critical look at the mutual fund industry. His book helps investors navigate their way through the staggering array of investment alternatives that are available to them.
He shows you how simplicity and common sense invariably trump costly complexity, and how a low cost, broadly diversified portfolio virtually assures outperformance of the vast majority of Wall Street professionals over the long-term.
That concludes our list of must-read value investing books. But if you want to dive even further into value investing, sign up for our free demo of STRIDE's stock screening software below.