Introductions to value investing
The Little Book of Value Investing - Chris Browne
A fantastic introduction to value investing – clear, simple and short. Chris Browne is a managing director at Tweedy Browne, one of the largest and most successful value managers in the world.
The Most Important Thing - Howard Marks
A slightly misleading title to the extent that Marks actually highlights a number of key considerations for the value investor, but that only serves to make the book more comprehensive. Often inspired by his memos to clients over the decades (which are themselves highly regarded) this is an easy-to-read, relatively short but still deeply insightful text that would serve as a good bridge between introductory value investing ‘primers’ and some of the weightier value classics. Marks is chairman and cofounder of US based asset manager Oaktree Capital Management.
Margin of Safety - Seth Klarman
Often referred to as the Warren Buffet of his generation, Klarman runs the hugely successful hedge fund Baupost which he founded in 1982. Copies are hard to come by, but worth the effort (if not the exorbitant prices on eBay)
Classic value books
The Intelligent Investor – Benjamin GrahamConsidered the bible of modern value investing, Benjamin Graham is known as the father of value investing and was Warren Buffet’s mentor. This is one of the two most famous books he wrote on the subject (the other being “Securities Analysis”). Written in the 50’s, it still strikes a chord today, though is probably not the best introduction to the subject – more for those who are already familiar with the style and want to hear it from the man himself.
Contrarian Investment Strategies: The Next Generation - David DremenA heavy read for those who have
Think Twice - Michael MauboussinOne of the best commentators of our time on behavioural finance. This is an easy to read book with some cracking examples of how our emotions can betray us and lead us to make poor judgments.
Moneyball/The Big Short - Michael LewisNeither is strictly a book about behavioural finance and Moneyball isn't even about Investing. However, both are amongst the most relevant and apocryphal books that a modern day (value) investor could wish to read and Michael Lewis has a gift for stories which relate the human condition.
Risk: The Science and Politics of Fear - Dan GardenerFull of great anecdote and real life (rather than investment world) examples of how behavioural errors impact our every day. A great book starter book for those interested in behavioural finance.
The Essays of Warren Buffet - Lawrence CunninghamA summary of the best bits from 20 years of Buffet Annual reports summarized under topics that make it easy for the casual and reference reader alike. Not strictly a book on value investing, more a collection of common sense thinking from one of the world’s most successful living value investors