Investment is an important and critical aspect of making money that most investors undermine. You might be a millennial investor or seasoned, but when you invest for the long term, your chances to gain profits increase.
Value investing is a similar concept but with a twist. Before we move on to the best books, let us understand value investing in short.
What is value investing?
Value investing, in stocks, focusses on buying undervalued stocks of strong companies and hold them over a long time. This will ensure huge profits in the form of dividends, bonus shares, and other incentives a company pays to its shareholders when they are looking at huge profits.
Now that you know value investing, let us take you through a few value investing books that will explain you the concept effectively.
List of Best Value Investment Books to Read
Value investment, also known as intelligent investment, focusses on helping you gain the maximum out of your investments. Here are a few books that jot down every bit in the best possible way.
The Intelligent Investor is a book by the man Benjamin Graham itself, also known as the father of value investing. We all know that the stock market is known for its unpredictable fluctuations. Also, the fluctuations leads some investors to pick that share and sell it in order to avoid further losses. Although a little research about the business before investing your money in the corresponding company can help you earn larger profits and reducing your risks.
The Intelligent Investor talks to the investors directly and gives them a mathematical way of investment which is aimed at removing emotional influence as much as possible and look at the stocks with only the financial aspect. The writer of the book, Mr. Graham, introduces a motto that says the market is like your business partner and hence referred to as Mr. Market. You will get a new offer almost every day from Mr. Market which you have to evaluate and choose whether to take it or leave it.
This book speaks about not letting your emotions dictate terms in the always-fluctuating world of the stock market. Instead, it focusses on the framework to make investment decisions that will minimize risk and maximize profit.
The book, “A Random Walk Down the Wall Street”, focusses on the stock market as an entity when it started till date. It specifies examples of traders overinflating a low-valued stock to increase the value so much that the stock went bust and everyone lost everything that they had. It explains you different examples like this that slowly help you understand the past of stock markets.
The book straight away points to a simple understanding of investment and how despite so many losses, markets going bust, everything came back to normal. Remember, the stock market corrects itself in time. Therefore, if you see the markets rising at a faster place be ready for the crash and plan accordingly. This book also introduces and compares technical analysis with fundamental analysis. Technical analysis is the study of numbers and analysis of stocks based on past data. Fundamental analysis deals with evaluating the business as a whole and then investing.
If you want to understand the all-round working of the stock market, this one is the best in helping you understand that. It talks about the factors that influence the stock prices and how you should interpret it as an investor. Once you know how to measure the fluctuations in the stock market, you are bound to slowly understand where the risk is and where is the profit.
This book is a little one in a true sense as compared to 600-pages The Intelligent Investor. Christopher Browne, the writer of this book, tries to explain the value investment concept using the supermarket shopping analogy. In the book, The Intelligent Investor, Mr. Graham talks about how value investing can help you minimize risk and maximize profit with the help of fundamental analysis.
The Little Book of Value Investing allows you to understand the concept of value investing and applying it in the real-life stock trading. It also helps you to understand the strategies used to buy low-priced stocks and sell them at high prices. This is a highly recommended book for beginners who are just starting out and want to earn big by investing in stocks. However, you should understand that value investing requires more patience and effort than your brains. Therefore, make wise investments with the right advice and deep understanding of the concepts. And, this book is a perfect read for all the beginners and others.
If you are not comfortable with jargons, we recommend you to get this one.
This book is written by Mohnish Pabrai, an Indian-American investor and philanthropist. This book is aimed at explaining the concept of value investing from the perspective of the word Dhando. Dhando is a Gujarati word that means enthusiasm that creates wealth. You get to understand the concept of buying the right socks at a lower price. You learn a different perspective of making wealth through stocks that are impacted by negative news and beaten to a lower price.
This book explains how Laxmi Mittal transformed the hammered steel industries into a high-revenue generating machine and become a tycoon by buying those hammered industries at a very low price. This book explains value investing principles and concepts in a much simpler way. It simply states the importance and significance of low risks, high return concept with the help of various case studies.
This book is written by Parag Parikh and one of the best books for you as an investor. The concept of value investing in stocks is not a simple one and your emotions influence the investment decision a lot. If you are not a seasoned investor you might relate to the fact that your investment habits depend a lot more on fear and greed. This investor behaviour should not be encouraged as the emotionally taken financial decision might not work in your favour over the long run.
The author has tried to shed some light on helping you understand how your behaviour can affect your investment decisions and how you can keep a tab on them by taking a practical way-out.
It talks about everything you should know about the stock market and focusses more on behavioural traits of the stock market.
If you are new to investment, looking forward to understanding value investment and making the most out of the stock market investment, we say you check out these books.
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