VALUE INVESTING BOOKS
A selection of the best books about value investing, stock picking, stock screening and great investors
The Intelligent Investor, by Benjamin Graham, is THE great classic book about investing, which inspired a whole generation of successful investors, including Warren Buffet himself. Graham introduces the notion of Intrinsic Value, and recommends that investor select stocks below their intrinsic value with a margin of safety.
What Works on Wall Street, by James O'Shaughnessy, is the best long term study on systematic investing strategies that work on the long run. O'Shaughnessy provides a very detailed analysis of numerous different strategies based on quantitative factors (price to sales, PER, dividend yield, momentum). This book is one of the founding documentation for Amdamax Value Investing Software.
The little book that beats the market, by Joe Greenblatt, is the best book to understand the power of systematic, quantitative value investing. Greenblatt details his "Magic Formula", which consists in ranking stocks by increasing PER, and decreasing ROTCE, and to chose the stocks with the best combination of low PER and ROTCE. Very promising results, but guts wrenching volatility.
The little book that beats the market, by Tortorelio, provides more details for multi factor systematic value investing strategies. According to Tortorelio, the best value investing strategies select stocks based on a mix of capital efficiency, low valuation metrics, limited leverage and cash return to investors (dividends). This was confirmed by our Amdamax value investing software.
Dividend Investing for Dummies, provides a good start in the dividend investing philosophy. Why dividend stocks are profitable on the long run and how to avoid the pitfalls of non sustainable dividends.