1. The Intelligent Investor by Benjamin Graham
Benjamin Graham is regarded as the father of value investing. His contributions on margin of safety and financial analysis paved the road for investors.
This book has heavily influenced Warren Buffett’s life and is considered one of the bibles of value investing.
“Chapter 8 and 2 have been the bedrock of my investing strategy for more than 60 years years. I suggest that all investors read those chapters and reread them every time the market has been especially strong or weak” – Warren Buffett
2. Security Analysis by Benjamin Graham and David Dodd
Graham and Dodd’s Security Analysis is the foundation of The Intelligent Investor. It is widely regarded as the fundamental textbook for analysis of stocks and bonds.
It explores numerous topics on analysis of balance sheets, intrinsic value, margin of safety, fixed securities and much more.
Many of the greatest financial figures were fascinated by this book, notably Warren Buffett, Jamie Dimon and Seth Klarman. This is an absolute must-have for every serious value investor.
3. You Can Be A Stock Market Genius by Joel Greenblatt
Joel Greenblatt, successful manager at Gotham Capital explores numerous uncommon investment strategies such as spin-offs, restructuring, bankruptcies, warrants, options and mergers.
He explains each strategy exceptionally well, and structures the book so it is easy to follow.
Additionally, the case studies in every chapter make this book all-the-better. There are many hidden opportunities in investing, this book will definetly shine light on where to look.
4. Value Investing: From Graham to Buffett and Beyond by Bruce Greenwald, Judd Kahn, Paul D. Sonkin and Michael van Biema
If you ever want to learn the basics of value investing, this is it. Relatively easy read, so just about anyone can pick this up.
The book consists of three parts, this includes an introduction to (I) value investing, (II) three sources of value, and (III) value investing in practice.
This book provides a wonderful application of the three sources of value (part II) with a case study of WD-40 and Intel, explaining in detail the valuation process. In addition, it profiles 8 of the very best investors, from Graham to Buffett, to Edwin and Walter Schloss and beyond.
5. Strategic Value Investing: Practical Techniques of Leading Value Investors by Stephen M. Horan, Robert R. Johnson and Thomas R. Robinson
Strategic Value Investing explores the main strategies and valuation techniques in value investing.
It consists of three sections:
(I) An introduction to value investing and the how to analyze companies,
(II) The valuation methods such as Dividend Discount Models, Free Cash Flow Models, Residual Income models, and more,
(III) The application of the models, variations of value investing styles. The information is very practical (includes case studies) and detailed, and it emphasizes on core value investing principles such as margin of safety. Different valuation methods are a must-know for investors and the authors do great work shining light on them.
A must-read if have not.