Investing is difficult, but thankfully you are not completely on your own. Some of the greatest investors of our time have shared of their investment wisdom by writing books. For the price of a couple of cups of coffee you can become the proud owner of one of these masterpieces, each and every one of them will leave a profound impact and if acted upon consistently in their true spirit will provide you with a massive advantage in making informed investment decisions in the future. As the saying goes: “The person that won’t read, has no advantage over the person that cannot read”.
The Intelligent Investor by Benjamin GrahamWho: Benjamin Graham is often recognized as one of the fathers of value investing and a key inspiration for Warren Buffet and countless other prominent investors.
What: One of the most celebrated works on value investing. Graham famously points out that Mr Market is at times behaving irrationally, and investors are free to profit from market folly rather than participate in it.
When: Originally published in 1949
Security Analysis by Benjamin Graham and David Dodd
Who: Co-authored by Benjamin Graham and David Dodd. The pair were colleagues at Columbia Business School.
What: Widely recognized as the intellectual foundation for security analysis and what was later to be known as value investing.
When: Originally published in 1934 (coming out of the great depression).
The Little Book that Beats the Market by Joel GreenblattWho: Greenblatt is an American academic, hedge fund manager, investor, and writer. He famously delivered a 40% annualized return with his hedge fund, Gotham Capital between 1985 and 2006.
What: This is one of the best and clearest guides to value investing. Greenblatt explains his so-called “magic formula”, and how following the formula purchasing quality companies (measured by return on capital) when they are available at a discount (measured by earnings yield).
When: Originally published in 2006