Reading List for the Holidays: 21 Value Investing Books for DIY Investors

Read time: 4 minutes

As the holidays are approaching, I'm looking forward to some days off the clock. Usually, during this time of the year, everything seems to slow down a bit. And maybe it feels the same to you.

It's the perfect time to get some inspiration for the next year and come up with new year's resolutions.

So, if you feel you want to immerse yourself into investing during the holidays or want to set a goal of reading more about it next year, check out the list of my favourite books about value investing below:

The Intelligent Investor by Benjamin Graham

Arguably, THE timeless classic about value investing. It's focused on conveying the concepts of value investing to the general public. It's a book that is rich with many examples, how to apply the core principles of value investing when analysing stocks and bonds. Starting with the distinction between investing and speculation, it explains the mindset to adopt as a value investor. Graham also introduces the distinction and the strategies to adopt for both defensive and enterprising investors. Easy to read and informative at the same time. A must-read!

You Can Be a Stock Market Genius by Joel Greenblatt

In this entertaining 300-page text, Greenblatt explains the reasons why you too can outperform the markets. He introduces you to the many special situations that exist in the market and how you can benefit from them. Many down-to-earth examples make this book easily relatable to everyday life.

Warren Buffett and the Interpretation of Financial Statements by Mary Buffett and David Clark

Want to learn more about how to interpret financial statements? Look no further. The 57 chapters are 1 to 4 pages short and to the point. They explain step-by-step what Buffett looks at when analysing a company. Starting with the Income Statement, to the Balance Sheet, the Cashflow Statement and concluding how to value a company with a durable competitive advantage - this is where you want to start when you have limited knowledge about accounting and understanding financial statements.

The Manual of Ideas by John Mihaljevic

Not only does John Mihaljevic present a framework of analysing and valuing a company but also a comprehensive overview of Value Investing as a whole. He introduces you to proponents of the different Value Investing styles, but also interweaves aspects about the Value Investing philosophy. Start with this book, when you want a comprehensive, easy to follow overview of the topic of Value Investing.

Value Investing: From Graham to Buffett and Beyond by Bruce Greenwald (2nd Edition)

Equally suited for the newcomer as well as the seasoned practitioner, in this standard work, Greenwald breaks down the various concepts of how to value a company. With many in-depth examples, this book guides you through the complete valuation process. It introduces you to the concepts of Asset Value, Earnings Power Value (EPV) and Growth Value. Also, it explains how to think about competitive advantage and how to find companies that display a moat.

Richer, Wiser, Happier by William Green: William Green

In his bestseller, William Green combines the wisdom of successful investors with the pursuit of a fulfilling life. He takes readers on an enlightening journey, sharing stories and insights from some of the world's greatest minds in investing. Insights that you cannot only apply to investing, but to life overall.

The Dhandho Investor by Monish Pabrai

Monish Pabrai's entertaining account of the foundational principles of value investing will make you want to find those undervalued companies. He introduces you to thinking of investing as bets that you take. You want to find bets where the potential upside outweighs the downside many times over. Enjoyable and perspective-shifting at the same time.

The Education of a Value Investor by Guy Spier

In this one-of-a-kind autobiography, Guy Spier who paid $650'000 to have lunch with Warren Buffett, shares his inspiring story of becoming a value investor. With many personal accounts and examples, Spier illuminates the path towards a more humble approach in investing. From his first steps as a money manager who was playing the status game of Wall Street, Guy Spier explains what led to the transformation of his thinking to adopting a more balanced and aware mindset.

Value Investing: A Balanced Approach by Martin J. Whitman

Martin Whitman offers readers a balanced, yet critical perspective on value investing. He emphasizes the importance of understanding both the qualitative and quantitative aspects of investments. And explores the industry set up and market structure where investors operate in, as well as examples thereof.

The Little Book of Value Investing by Christopher H. Browne

Christopher Browne's book is like a collection of golden nuggets for value investors. He presents timeless wisdom in bite-sized portions, making it easy to digest. Browne's friendly and approachable style ensures that readers of all levels can grasp the essentials of value investing and apply them to their own portfolios.

Good Stocks Cheap by Kenneth J. Marshall

The book is the foundation of Kenneth Marshall's introductory value investing course at Stanford. He elaborates his "Value Investing Model" according to which you should answer the questions "Do I understand it?", "Is it good?", "Is it inexpensive?" during your research. Marshall guides you through his approach step-by-step. Concluding with some behavioural choices, you should avoid. A beginner-friendly approach for your stock analysis.

The Acquirer's Multiple by Tobias E. Carlisle

This book unfolds the mystery behind the acquirer's multiple, a formula that helps you find undervalued companies. Furthermore, Carlisle examines the concept of "Reversion to the Mean" and how value investors can benefit from it. This book presents a more mechanical, quantitive approach of finding deep value - i.e. ultra-cheap businesses - but is nevertheless instructive for everyone who wants to become a value investor.

One Up on Wall Street by Peter Lynch

Another all-time bestseller, Peter Lynch's book is like a lively conversation with a seasoned investor. He shares his experiences and practical wisdom, highlighting the importance of doing your homework, staying curious and advocates a long-term approach. He debunks some of the myths of Wall Street and the stock market. With lots of real-world examples and anecdotes, you will get a glimpse inside the thinking of one of the most successful investors of all time.

Security Analysis by Benjamin Graham and David L. Dodd

Graham and Dodd's monumental work reads like an in-depth discussion with investment scholars. They lay the groundwork for fundamental analysis and offer a comprehensive guide for evaluating securities. Timeless knowledge on 700+ pages. The bible of Value Investing!

The Art of Value Investing by John Heins and Whitney Tilson

The Art of Value Investing is a collection of conversations and quotes from many of the best investors. In short paragraphs it touches on all important topics that concern an investor, from the circle of competence, generating ideas, portfolio building to selling your position eventually. On 300 pages, you get a reference book that has the potential to change the way you think about and approach your own current investing challenges.

100 to 1 in the Stock Market by Thomas W. Phelps

Thomas Phelps shares timeless principles for finding stocks with extraordinary growth potential. It examines what made the big companies of his day so profitable for the diligent, long-term investor. The book is a review of the stock market history and what learnings can be drawn from it to identify the most successful companies for the future.

The Art of Execution by Lee Freeman-Shor

In this highly applicable work, Lee Freeman-Shor explores the critical element of executing investment decisions effectively. He presents real-life examples and practical strategies. Learn how "Rabbits, "Assassins", "Hunters", "Raiders" and "Connoisseurs" - five different types of investors - take decisions about losing and winning portfolio positions. Highly recommended, once you are invested in a company. It will for sure improve your decision-making.

The Snowball: Warren Buffett and the Business of Life by Alice Schroeder

Alice Schroeder's biography of Warren Buffett feels like an intimate conversation with the Oracle of Omaha himself. She delves deep into Buffett's life, revealing his personal and professional journey. Schroeder's engaging storytelling paints a vivid picture of the man behind the legend, making it a must-read for both investors and Buffett enthusiasts.

Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger by Charles T. Munger

Charlie's wisdom shines through in this collection of his speeches and writings. It's like having a candid chat with a brilliant mentor. Expect insights into investing, decision-making, and life in general. Learn why unconditional curiosity and the "latticework of mental models" will benefit you as an investor. And why you should be aware of the "lolapalooza effect".

Two books I have not read yet, but plan to during the holidays and beyond:

Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor by Seth Klarman

For sure the most expensive book on the entire list. Currently retailing at $1'965 on Amazon, this is a collector's piece. I would expect to find timeless investing lessons and wisdom in there. Will let you know once I had a chance to read it.

Common Stocks and Uncommon Profits by Philip A. Fisher