Best book to learn how to value invest
Can anyone recommend some good books that would teach me how to value invest?
Including risk management, risk to reward ratio, position sizing, how long to hold as well as how to identify value stocks
The only book that comes to my mind is Security Analysis.
I'm sure there are more out there.
Hi there Mtgeorge,
I recommend six books which have been particularly useful in my education as a Value Investor;
As mdd has mentioned, 'Security Analysis' is worth reading as is 'The Intelligent Investor'
I also recommend 'Excess Retuns' by Frederik Vanhaverbeke;
'Value Investing: From Graham to Buffett and Beyond' by Prof. Bruce Greenwald;
'You can be a stock market genius' by Joel Greenblatt;
'One up on wall street' by Peter Lynch;
If you absorb and apply the ideas and information presented in these books you'll be able to embark upon your journey as a Value Investor with the confidence that you have a well rounded and in-depth understanding of value investing.
I am at the very early stages of learning to value invest, however, the books written by Preston and Stig are by far the easiest to grasp and the videos on Buffett Books. Actually I went on a trading course about a year or so back here in the UK and I have learnt more from these books and this site then I did on the course.
Hope that helps?
I made a list of books that I think will cover the most you need to know. Its accounting, practical application of value investing, how to think smarter and behavioral investing. To become a good investor I think it's good to have a good understanding of the world and how people behave and think, not only how to value stocks and read financial statements. It's a long journey to become a great investor, and you probably can't skip the daily reading. Here is the booklist:
edited November 2017
My personal top 10 of investing books would be:
1.What Works on Wall Street - James O’Shaugnessy
2.The Zulu Principle - Jim Slater
3.The Intelligent Investor - Benjamin Graham
4.Quantitative Strategies for Achieving Alpha - Richard Tortoriello
5.Quantitative Value - Wesley Grey
6. Quantitative Momentum - Wesley Grey
7. Value Investing: Tools and Techniques for Intelligent Investment - James Montier
8. Predicting the Markets of Tomorrow - James O’Shaugnessy
9. High Returns from Low Risk: A Remarkable Stock Market Paradox - Pim van Vliet
10. Contrarian Investment Strategies: The Psychological Edge - David Dremen
Items 1,3,4 and 5 focus a lot about identifying value stocks.
Item 8 has an interesting section about asset allocation (position size in different categories such as small cap, large value, large growth).