The following books are books about value investing, investing and on Warren Buffett that I have read and am highly recommending. You can purchase these books at most bookstores or you could purchase them online at my Guerilla blogger eBookstore which is powered by Amazon.


1.) RULE# 1 BY PHIL TOWN – Rule# 1 is the  first value investing book I have read. The book also became my introduction to  Warren Buffett and value investing. I have invested in the stock market before and have only heard a little bit about Warren Buffett, but I had no idea what value investing is all about. What Benjamin Graham’s  “The Intelligent” investor did for Warren Buffett, Rule #1 did for me. It opened my eyes to the proper way of doing stock market investing.  Rule #1  attempts to step by step guide the new investor into value investing and what are perceived to be Warren Buffett methods.

A great introductory book for people who are new to value investing and even investing in general, Rule #1 attempts to “formulize” value investing principles through the “Four M’s” and the “5 Big numbers” and provide a step by step approach on what Warren Buffett and other value investors would do. The book is named after Graham’s and Buffett’s Rule#1 which is “Never loose money.”

The book is subtitled as “The simple strategy for successful investing in only 15 minutes a week.” Although such statement is true once you become a seasoned “Rule #1 stock market investor”, the initial preparation of gathering data, sorting through the data and initially getting familiar with companies might take longer than the promised 15 minutes that the book advertised.

 

2.) HOW BUFFETT DOES IT BY JAMES PARDOE– Not my second value investing book but highly recommended for its easy to read format and is probably the best introductory material I could ever find on Warren Buffett. You can easily read this 154 page book in one sitting.

The book does not discuss any of the technical aspects of value investing but it provides 24 very practical and down to earth principles on what are perceived to be Warren Buffett’s investing strategies. I find the cartoons at the beginning of each chapter humorous.

Take note this is only great as an introductory material, so don’t expect some hard core number crunching, brain wrecking stuff. However do not let its simplicity fool you. The principles in the book might very well save your portfolio.

 

3.) THE COMPLETE IDIOT’S GUIDE TO VALUE INVESTING – Finding the best investments is elementary so says the book’s cover and indeed it is so, if you carefully read and follow the principles outlined in the book.

The Complete Idiot’s guide to value investing is written by Lita Epstein and published as part of the “Idiot’s” book series by Penguin publishing. Although value investing has been a proven blue print for successful investing for nearly 100 years, value investing comes in different flavors and a lot of value investor uses a lot of different kinds of value investing strategy. Do not get me wrong, there are some basic “core” stuff that value investor’s agree upon such as the principles of “Margin of safety,” the importance of analyzing the financial statements and some basic common understanding of how to find the real value of stocks etc., however there are other methods that other great value investors are using that could make a difference in your own stock picks. Written in easy to understand terms, this book explains the core value investing stuff, helps you understand the basics of understanding financial statements and other finance terms and further advances to the different strategies used by other legendary value investors. A highly recommended reading for those aiming to becoming a serious value investor.

 

4.) LEARN TO EARN – Master Value Investor Peter Lynch and John Rothchild has written perhaps the most easy to understand and the most basic introduction to stock market investing. The book might not appeal very well for those who already have a background in finance or stock market investing as to them it might be “Stock market investing for the dummies of the dummies.” Since the book is targeted more towards young people, the writing style is quite loose, hip and even funny. I’d give this book to any young person whom I would advice to start investing in the stock market. Lynch and Rothchild start off by telling the history of capitalism, finance and stock market investing. They then make a strong case for stock market investing and how you, the ordinary investor can buy the right stocks at the right price. This work is a timeless classical masterpiece on a beginner’s guide to stock market investing. If you want a real good introduction to stock market investing, read this book first before you pick up any other book.

 

5.) BUFFETOLOGY, THE NEW BUFFETOLOGY AND THE BUFFETOLOGY WORKBOOK Among those who write about Warren Buffett’s investing techniques nobody provides a more detailed, step by step approach than Marry Buffett and David Clark. Now take note that Warren Buffett never revealed in public how he values company. Until now it is a trade secret and it the secret will probably remain with him until he decides to reveal it or take it to his grave. Although he drops a lot of hints on how he does it when writing his annual reports, nobody knows exactly how he chooses his stock picks. Now the Buffetology books doesn’t claim that the detailed investing strategies and techniques outlined in the book are what Warren Buffett really uses however it does say that the book contains the “previously unexplained techniques that have made Warren Buffett the world’s most famous investor.” Also the writing style of the book seems to indicate that these are really the investing strategies and techniques that Warren Buffett uses. The authors claim seems rightly so considering that Mary Buffett used to be Warren Buffett’s daughter in law while David Clark is a portfolio manager and is a friend of the Buffett family for more than 30 years. He is also a recognized authority on Warren Buffett’s investment methods. Now whether or not these are the actual computations that Warren Buffett uses, the investing techniques and strategies outline in the book does make business sense. If you want to follow the path of the master investor himself then read Buffetology together with the Buffetology workbook. Then follow it up with the New Buffetology Take note that even if you follow the detailed investing techniques and strategies outlined in the book, there is no guarantee that you will be as successful as Warren Buffett. What is not taught in the book is the fact that despite detailed computation you must be able to learn to make your own independent judgment and evaluation on whether or not a stock is a good by or not.

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