Top 5 guide books on value investing

  • By Author

  • October 3, 2018
  • 8:23 pm BST

Among the many existing investment types, value investing is a unique choice that focuses closely on the innate value of potential investment stocks. Although many methods exist for this type of investing, it remains one of the more mysterious types. Investors choose suitable stocks based on the analysis of the stock and its true worth, rather than the value suggested by the company. The necessary trading strategies include analyzing the earnings, dividends and other crucial factors that influence the stock’s value.

Few traders realize that most stocks are sold at a discounted price, and this counts in the favor of value investors. This is done for several reasons, and it means that it is being sold for less than the intrinsic value. The challenge of value investing comes into play when an investor has to determine the true value of the stock and consider the relevant factors.

The following five leading books are extremely useful if you are looking to start value investing.

  1. The Intelligent Investor by Benjamin Graham

Benjamin Graham is one of the founding fathers of value investing and is considered a guru in the field. Published in 1949, this book is an in-depth study of the key principles that value investors should possess. This guide is useful for all types of investing and is a best-seller in the business genre. It might not give away all the secrets to choosing the perfect stocks, but it does offer valuable advice suitable for all investors.

  1. The Little Book That Beats the Market by Joel Greenblatt

This title makes grand promises, claiming to educate a trader in two hours on all the necessary knowledge of value investing. What makes it so popular is that it succeeds in providing thorough training in the length of a single, short book. The book consists of 13 chapters that cover topics like business evaluation, managing risks, applicable techniques and other keys to value investing.

  1. The Little Book of Value Investing by Christopher H. Browne

Like the other titles in The Little Book series, this book features concepts that are easy to understand and practical to implement in your own investments. It is suitable for absolute beginners and covers all the basics to get you started. It includes concepts for various strategies, the mindset of finding the best value for less, and steps to help you choose your stocks. In addition, you will find information on how to protect your investments and create security.

  1. The Warren Buffett Way by Robert G. Hagstrom

This title is a favorite for learning value investing as it teaches you the ways of the successful investor Warren Buffett. Hagstrom analyzes Buffett’s investments and details the key choices that led to the many successes under his belt, particularly in choosing a company and valuing stocks. The Warren Buffett Way offers a close look into the thinking behind some of the industry’s best investments, along with how to apply these methods to your own trading.

  1. The Art of Value Investing: How the World’s Best Investors Beat the Market by John Heins & Whitney Tilson

Of these five titles, this one is the most recently published. It offers a fresh look into value investing. The book is designed to guide beginner value investors through the necessary knowledge, starting with the basics and progressing as the book continues. With its insight into some of the best investors in the world and the methods of their investments, it is a reputable title recommended by the CFA Institute.

Whether a trader has set out to learn CFDs, Forex or stock trading, all beginners in the industry need reliable resources to guide them through their trades and investments. These highly recommended books are classics in the industry and will set you on the right path as they provide essential information to help you start value investing successfully.