The Most Popular Value Investing Book

A value investing book provides investors with information about the principles of value investing. A value investor is a person who buys stocks that are below their true value. Value stocks have high dividend payouts and a low price to earnings (P/E) ratio.

Determining the most popular book on value investing is a matter of perspective. Since the term was first brought up in the 1930s, there have been many proponents of value investing and books written on the topic. Disciples of the principle include Warren Buffet, Sir John Templeton, Peter Lynch and Adam Smith. Each of these men has experienced success in employing value investing strategies and has contributed works that are popular with value investors.

Security Analysis (1934)

Ben Graham and David Dodd were professors at Columbia University’s School of Business who came up with the principles for value investing in their book, Security Analysis. There work was first published in 1934 and gave way to one of the most famous value investors and former student, Warren Buffet.

The Intelligent Investor (1949)/The Money Game (1976)
Ben Graham’s The Intelligent Investor (1949) and Adam Smith’s The Money Game (1976) are classic works in the area of value investing. Written decades apart, both books discuss the same theories with respect to long-term buy and hold strategies, conducting analysis to determine a stock’s true value relative to its price and seeking companies in stable industries that pay high dividends.

Warren Buffet
Buffet’s work in the area of value investing is evidenced by his holding company, Berkshire Hathaway. The company is a diversified conglomeration of companies with assets in excess of $250 billion. 1 share of Berkshire Hathaway (A shares), which trades on the New York Stock Exchange, costs around $100,000. The holdings of Berkshire Hathaway include Geico Auto Insurance, Court Business Services and Shaw Floors.

Margin of Safety, Risk Adverse Investing Strategies for the Thoughtful Investor (1991)
Margin of Safety, Risk Adverse Investing Strategies for the Thoughtful Investor, written by Seth Klarman in 1991, is considered the definitive authority on value investing. The book, which is out of print, can be found online for upwards of $1,000 a copy. It provides information on the principles of value investing and Klarman’s style has been compared to that of Warren Buffet.

Beating the Streets (1991)
A very popular work was written in 1994 by Peter Lynch entitled Beating the Streets. Lynch was the investment manager who created the Fidelity Magellan fund, which became widely popular and successful from its inception in 1977. The book speaks about the value investing principles that he used to grow the fund from $22 million in assets to $14 billion in 1990 when he retired from managing the fund.

Finding one of these books will provide you with information and tools to learn and employ value investing strategies for your investment portfolio.

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