Emmanuel Martinez Jun 29, 2021

Top 5 Books on Value Investing

Top 5 Books on Value Investing 

These are my (Emmanuel Martinez, Hedge Fund Manager at Alphex Capital LP) Top 5 Books on Value Investing and a short description of each book. These books along with others shaped my investment philosophy and understanding of value investing and I highly recommend them to any individual who wants to be in the world of investing. 

1. The Intelligent Investor 

Length:                640 Pages (Long)

Rating:                 5 Stars

Investor Level:    Intermediate 

This is by far one of the best books on value-investing in the planet. The Intelligent Investor is one of my personal favorite books and it dives into the investing philosophy of Benjamin Graham, the father of value-investing. Benjamin Graham was one of Warren Buffet's mentors and Buffet says that this is "By far the best book on investing ever written". To me, this is the investing bible and is a must-read for anyone that wants to be succesful as a stock investor. Chapter 8 is probably the most impactful chapter as it dives into the emotional intelligence and psycological understading needed to be a succesful investor in the long-term. 

2. Common Stocks and Uncommon Profits

Length:                320 Pages (Short)

Rating:                 5 Stars

Investor Level:    Beginner/Intermediate

This is another of Warren Buffet's favorite books on investing as he says, "I am an eager reader of whatever Phill has to say, and I recommend him to you". Philip Fisher's investment philosophies, introduced almost forty years ago, are not only studied and applied by today's financiers and investors, but are also regarded by many as gospel. This book is invaluable reading and has been since it was first published in 1958. This is one of my favorite investment books as it tackles the fundamentals of investing but also really talks about the qualitative measures which are often overlooked in investing. He talks about what to look for in a business to make sure it is a good investment in the long-run. Great book and an easy-read.


3. Security Analysis

Length:                700 Pages (Long)

Rating:                 4.8 Stars

Investor Level:    Advanced 

Another Benjamin Graham and David L. Dodd book on value-investing. This book focuses more on the fundamentals of investing and finding bargains. Benjamin Graham, “the father of value investing,” and his philosophy has withstood the test of time across a wide diversity of market conditions, countries, and asset classes. This book dives into every publicly traded investment vehicle from all bonds to common stocks. Security Analysis really explains the philosophy of finding undervalued securities and although it was written over 50 years ago and uses many examples of that time, he philosophy behind it still stands true to this day.


4. The Acquirer's Multiple - How the Billionaire Contrarians of Deep Value Beat the Market 

Length:                159 Pages (Short)

Rating:                 4.8 Stars

Investor Level:    Beginner/Intermediate 

The Acquirer’s Multiple: How the Billionaire Contrarians of Deep Value Beat the Market is a must-read exploration of deep value investment strategy, describing the evolution of the theories of valuation and shareholder activism from Graham to Icahn and beyond. I loved how this book goes over the contrarian view in investing and how regression to the mean affects earnings in stocks. This book also talks about Warren Buffet's early investment days and the strategies he used to kill the DOW. Lastly, this book will teach you how to find bargains using the acquirers multiple.

5. The Little Book of Common Sense Investing

Length:                304 Small Pages (Short)

Rating:                 5 Stars

Investor Level:    Beginner

Although this book is not solely about value-investing it is a great book that goes over many subjects in the stock-market world. The main investment strategy emohasized in this book is to invest in many diversified global low-cost index funds. The main points which impacted me from this book was the underperformance of active funds compared to the market, the psychological aspects of investing, and the history of bubbles and how they repeat themselves. Very easy and quick read and great book if you are just starting off your journey as an investor.