If you’re sick of seeing rich investors and thinking “I could do that”, then you should probably learn how stock valuation is done effectively.
If you can’t find out for yourself how much a company is worth, then you’ll have a rough time as a value investor trying to guess which stocks are undervalued.
Luckily, there are plenty of resources everyone can use to learn how it all works, and how to benefit from the inefficiencies in the stock market.
Here are three books that will help teach you everything you need to know about stock valuation so you can start buying companies for low prices and building a fortune.
Correctly identifying the inherent value of a security by analyzing it’s fundamentals… it’s not something that you are born knowing how to do.
That’s why books like Security Analysis by legendary value investors Benajmin Graham and David Dodd sell for close to $70 almost a century after they were written…
There’s a reason why people will still pay so much for an old investing book.
Graham and Dodd’s knowledge is almost priceless, and this book will shed light on the mysteries of analyzing securities properly.
Proper company valuation isn’t easy, so you need to be prepared and educated, and reading some literature from some of the best investors to ever live is definitely a great place to start.
#2) The Intelligent Investor - by Benjamin Graham
The Intelligent Investor
If you’re starting to notice a pattern with these book suggestions, it’s probably because Benjamin Graham literally “wrote the book” on value investing and fundamental analysis.
Or rather the “Books”.
Needless to say, he may know a thing or two about investing and it might be worth your time to read his books, if you want to learn about value investing.
The Intelligent Investor is surprisingly long, and jam-packed with priceless investing wisdom, and after giving it a read it’s obvious why Warren Buffet claims it’s “by far the best book on investing ever written”.
Just like Graham’s other masterpiece, The Intelligent Investor is a timeless classic, and well worth the read.
Personally, I’d pay more than $20 for the book, but luckily some books are clearly undervalued.
#3) Value Investing: From Graham to Buffet and Beyond - by Judd Kahn, Paul D Sonkin, Michael Van Biema, and Bruce C. N. Greenwald
Value Investing: From Graham to Buffet and Beyond
The only book on this list that wasn’t written by Benjamin Graham, happens to have him in the title…
I guess that’s just how good Graham was.
This book offers deep and professional insights into the world of value investing, which relies pretty much solely on solid fundamental analysis and due diligence to make a profit in the long term.
If you want to learn how to invest like Graham or Buffet, then this book will definitely help you get there, if you’re willing to put in the effort, of course.
Which investing books helped you learn how to determine a stock's value?
No-one can read every book out there, so what are some of your favorites for learning about the stock market and how stock valuation is done?
Or do you have a favorite investing Youtube channel? Let us know!
If you liked any of these books, let us know what you thought about them.
Thanks for the support, have a wonderful day and good luck investing!