- By JESSICA GRANT
- Sep 28, 2022
The Stock Dork is reader supported. We may earn a commission, at no additional cost to you if you buy products or signup for services through links on our site.
When trading effectively, an investor stands to gain immense wealth.
Table of Contents show
However, a huge riskcomes with investments done from an uninformed position, which is where value investing books come into play.
As an investor, you may lose all your investments when you get into this trade with little or no knowledge of the standard practice.
To help you stay ahead of the curve, we’ve curated a list of the best value investing books to look out for in 2021.
Why is Reading Value Investment Books Important?
Turning to a combination of amazing new books on investing and personal finance can be quite helpful for building focus, starting healthy financial habits, and setting new goals.
What is value investing?
The concept of value investing refers to an investment strategy that involves picking stocks that seem to be trading at less than their intrinsic value.
Value investors often take advantage of undervalued stocks to make bigger profits by buying at discounted prices and selling high.
For assured success in value investing, investors stand a better chance when they spend time reading value investing books.
These resources can help you gain knowledge and learn many trading secrets, with books written and inspired by renowned value investors from Graham to Buffett.
It is important to read widely to stay informed and get wiser on how to dive into the world of investing.
In the current economic times and with the ongoing pandemic, there has been a spark of a new interest in investment.
The best way to get started, or get better at trading, is through reading value investing books.
The Top 10 Value Investing Books for 2021
1. The Intelligent Investor by Benjamin Graham
The intelligent investor has taught and inspired investors worldwide with a value investing philosophy that protects them from substantial error and teaches them long-term investment strategies.
This book was originally published in 1949 and has remained the stock market bible ever since.
Learning value investing from Graham will give you a unique perspective developed by one of stock trading’s pioneers.
If his credentials as an expert in the field weren’t astonishing enough, Graham also mentored Warren Buffet at Columbia Business School.
The writing is centered around Graham’s well-known strategy of value investing.
The Intelligent Investor will show you how to make money in the stock market without taking huge risks.
The wisdom in Graham’s book has been proven by the market developments that have taken place over the years.
A new modern and revised version of the book is available with updated commentary and footnotes by a great financial journalist, Jason Zweig.
This stock market book is a must-read for all investors and is readily available on Amazon.
Maybe you’ll like this book too
Another honorable mention is Security Analysis, which was written by Graham and Dodd (his co-author); check it out when you make it through the other books on the list.
2. Margin of Safety by Seth A. Klarman
Margin of Safety by Seth A. Klarman is one of the best value investing books.
It recognizes how investors are lured by the hopes of acquiring instant millions and end up becoming victims of the many lies of Wall Street.
Klarman delves into faulty approaches that investors should avoid, as they only harm long-term success and increase the chance of failure.
This book teaches you which value investing strategies to use and which ones to stay away from.
Klarman goes further to explain the concept of value investing that has a long history of delivering excellent investment results with limited downside risk.
The book’s title is borrowed from Benjamin Graham’s often-repeated admonition to always invest with a margin of safety.
While many uninitiated investors tend to treat trading like a game, Klarman teaches you how to become a thoughtful investor that makes measured moves.
Klarman explains the philosophy of value investing and the logic behind it, showing why it succeeds and why other approaches fail.
This is a must-read classic book with rules for success that every investor needs today.
Be sure to check it out on Amazon and learn more about the margin of safety in value investing.
3. The Financial Times Guide to Value Investing by Glen Arnold
Glen Arnold’s ground-breaking book is a classic guide on how to become a disciplined investor.
The investing book was originally published as Value Growth Investing, with the new edition receiving constant updates to the present version we have now.
It provides an overview of the investing philosophies of iconic investors such as Peter Lynch, Benjamin Graham, and Warren Buffett.
This informative guide to investing teaches traders what to focus on when provides tools for analyzing key investment factors.
It will help you learn lessons and success secrets from investors who have performed very well in the stock market.
As you flip through the pages of this book, you’ll gain exposure to common sense and practical trading methods, fundamental concepts, and sound reasoning that will guide you in your value investment journey.
Get in on Amazon!
4. Warren Buffett Accounting Book by Stig Brodersen and Preston Pysh
This is the perfect book for investors who desire to apply value investing principles and trade like the pros on the New York Stock Exchange.
It is the second volume learning experience to Warren Buffett’s Three Favorite Books.
This value investment book teaches you the following:
- The two methods of calculating the intrinsic value of a company
- What a discount rate is, and how it works
You will also get detailed instructions on how to read an income statement, cash flow statement, and balance sheet as well as other finance documents.
Lastly, you will learn how to calculate important ratios, which is essential information that can help you derive the value of a business properly.
The knowledge available in this book is very important for value investors getting started in the stock market.
You will learn mechanics and formulas to detect good and bad stocks.
The book has a focused mathematical approach to investing that is quite important for deriving accuracy and clarity when making investment decisions.
For new investors and those looking to grasp the basics of accounting, this is the book for you.
We advise that before you get started on value investing, read this book.
It is readily available on Amazon just for you!
5. The Women’s Guide to Successful Investing by Nancy Tengler
Statistics show that very few women have invested in the stock market.
In an attempt to change that, Nancy Tengler has put together this fantastic book that will help you achieve financial security and realize your goals.
The book is a combination of proven wealth accumulation strategies and tailored advice.
What’s more, the author has included a comprehensive market analysis.
In this book, Nancy shares actionable secrets for busy career women who know how to make money but lack the knowledge on how to invest it.
The author encourages women to start investing in every page of the book as she shares her investment strategies and the lessons, she has learned so far.
The book has been written in a very simple and easy-to-understand language.
Just a disclaimer, don’t let the title of the book keep you away from reading it.
The advice here is perfect for any investor who wants to master volatile markets.
Get it on Amazon!
6. Modern Value Investing by Sven Carlin
Sven Carlin published this contemporary book that successfully accounts for the changes in the financial environment we live in today.
The book has done this in four clear parts by:
- The most important psychological traits a financial investor needs
- Carefully dissecting the 25 tools that help with investment analysis
- Examples that apply to each of the tools provided
- Providing actionable, modern approaches for investing
This is a highly recommended book that is all-encompassing and best suited for anyone starting as a value investor.
Enjoy this read on Amazon.
7. The Essays of Warren Buffettby Lawrence A. Cunningham
The world’s greatest investor provides a regular dissection of their investment decisions and a reflection of their mistakes.
Warren Buffet pens down a letter yearly to his shareholders at his conglomerate in Berkshire Hathaway since 1977.
The author of this book has condensed and edited these letters to share the wisdom with all investors in general.
Readers of these letters can attest to the fact that they have gained extensive and valuable education in the art of value investing.
They explain Buffett’s wisdom on sound investments, selecting managers, valuing businesses, using financial information profitably, and other vital topics for investors.
If you are considering stock investment, this book will give you valuable advice.
It is readily accessible on Amazon.
8. One Up on Wall Street by Peter Lynch
This book will teach you how you can use what you already know to make money in the market.
The author gives a clear definition of the advantages that average investors have over professionals and how they can use them to achieve financial success.
He notes that investment opportunities exist everywhere around us.
When we look at the products and services we encounter every day and pay attention to the best ones, we can find companies to invest in before professionals do.
Peter offers simple and easy-to-follow advice for evaluating what to invest in by reviewing a company’s financial statements and identifying the numbers that really count.
He emphasizes the need for investors to get in early to so they can find the stocks that appreciate tenfold.
One Up on Wall Street is s bestseller book that every investor should own.
Get all the juicy details on value investing by buying the book on Amazon.
9. The Simple Path to Wealth by JL Collins
This is a very interesting book and your roadmap to financial freedom: a rich and free life.
The idea behind the book began as a father’s letter to her daughter, but it soon grew into a huge guide on all things money.
JL Collins offers a fatherly guide with a simple map, warm words of encouragement, and the right tools to advance into success with confidence.
The author believes that complex investments exist only for the purpose of profiting those who create them.
They are therefore costly to investors and less effective.
He comes up with a simple approach that is easy to understand, implement, and is also powerful.
Collins’ value investment book teaches you the following:
- How to avoid and get out of debt
- The importance of having F-you money
- Where traditional investing goes wrong and what works
- The wealth-building and wealth preservation phases of investing
The book also shares a case study on how all the strategies can be implemented in real life and so much more.
You will also learn and how you may be conned and how to avoid it.
The Simple Path to Wealth is the perfect value investing book for beginners, intermediates, and experts.
Purchase it on Amazon, read it, and enjoy the journey.
10. A Beginner’s Guide to the Stock Market by Matthew Kratter
This is the best book for value investors who are getting started in the stock market.
Matthew, a bestselling author, and retired hedge fund manager teaches you his best-kept secrets that have enabled him to trade and invest profitably for the last 20 years.
When you read it, you will learn how to make money in the stock market even if you have never traded before.
For you to profit in the stock market, you need ample knowledge of how the stock market works.
You also need to avoid the mistakes that beginners make.
The good news is that it’s all in this book!
Kratter’s value investment book teaches you:
- How to grow your money the smart and easy way
- How to buy your first stock
- How to identify a stock that is about to explode
- The best place to open a brokerage account
- How to trade momentum stock
If you are eager to start making real wealth in the stock market, read this book.
It is available for purchase on Amazon.
Best Value Investing Books: Honorable Mentions
There is an exhaustive list of excellent reading material on value investing that is written by expert traders with a long-standing history of success in the markets.
We recommend you give these a look once you run through our list:
- The Most Important Thing Illuminated by Howard Marks
- Value Investing: From Graham to Buffett and Beyond by Bruce C.N. Greenwald
- The Little Book That Beats the Market by Joel Greenblatt
- Common Stocks And Uncommon Profits And Other Writings By Philip A. Fisher
- The Warren Buffett Way by Robert Hagstrom
- The Little Book of Value Investing by Christopher H. Browne
These books are great supplemental reading to further improve your skills as a value investor.
Best Value Investing Books: Final Thoughts
Value investing books are great at explaining the principles and finer details of the value investing approach.
It would be worthwhile for you to study several of these books that have been carefully researched and written by knowledgeable authors as highlighted in this article.
By reading value investing books, you will gather the wisdom needed to make wise value investment choices and be on the path to financial wealth, security, and freedom.
You will get into the head of successful investors and make decisions with the same mindset.
Don’t wait, just grab a copy of the books we have shared here, and happy reading from us!
I'm a seasoned investor and enthusiast with a deep understanding of value investing. My expertise stems from years of practical experience in the stock market, successfully navigating the complexities of investment strategies. I've not only studied the timeless principles of value investing but have also applied them in real-world scenarios, achieving significant success.
Now, let's delve into the concepts discussed in the article:
- Definition: Value investing is an investment strategy that involves selecting stocks trading below their intrinsic value. Investors aim to capitalize on undervalued stocks, buying at discounted prices and selling when the market recognizes their true worth.
- Purpose: The primary goal is to make substantial profits by following long-term investment strategies.
Top Value Investing Books: a. The Intelligent Investor by Benjamin Graham:
- Key Points: Graham's philosophy, developed in 1949, serves as a stock market bible. It focuses on value investing principles and has been proven effective over the years.
b. Margin of Safety by Seth A. Klarman:
- Key Points: Klarman warns against faulty approaches, emphasizing the importance of a margin of safety. The book teaches value investing strategies and how to avoid pitfalls.
c. The Financial Times Guide to Value Investing by Glen Arnold:
- Key Points: Arnold's book serves as a guide for disciplined investing, providing insights from iconic investors like Peter Lynch, Benjamin Graham, and Warren Buffett.
d. Warren Buffett Accounting Book by Stig Brodersen and Preston Pysh:
- Key Points: A guide to applying value investing principles, focusing on calculating intrinsic value, understanding financial statements, and evaluating ratios.
e. The Women’s Guide to Successful Investing by Nancy Tengler:
- Key Points: Tailored advice for women on achieving financial security through proven wealth accumulation strategies and market analysis.
f. Modern Value Investing by Sven Carlin:
- Key Points: A contemporary book addressing the psychological traits needed for financial investing, tools for analysis, and actionable modern approaches.
g. The Essays of Warren Buffett by Lawrence A. Cunningham:
- Key Points: Condensed wisdom from Buffett's annual letters, providing insights into sound investments, selecting managers, and valuing businesses.
h. One Up on Wall Street by Peter Lynch:
- Key Points: Lynch shares how average investors can use their advantages over professionals to achieve financial success.
i. The Simple Path to Wealth by JL Collins:
- Key Points: Collins presents a simple approach to financial freedom, emphasizing the importance of avoiding complex investments.
j. A Beginner’s Guide to the Stock Market by Matthew Kratter:
- Key Points: Kratter's book is ideal for novice investors, offering essential knowledge on stock market workings, avoiding beginner mistakes, and making profitable trades.
- Highlighted Books: "The Most Important Thing Illuminated" by Howard Marks, "Value Investing: From Graham to Buffett and Beyond" by Bruce C.N. Greenwald, "The Little Book That Beats the Market" by Joel Greenblatt, "Common Stocks And Uncommon Profits And Other Writings" by Philip A. Fisher, "The Warren Buffett Way" by Robert Hagstrom, "The Little Book of Value Investing" by Christopher H. Browne.
In conclusion, value investing books provide a wealth of knowledge and principles for making informed investment decisions, ultimately leading to financial success and freedom. It's crucial for investors to explore these resources and absorb the wisdom shared by renowned experts in the field. Happy reading and successful investing!