Unlike trading, getting started in value investing is a bit harder. For one, the information out there is much limited and value investors by nature are much more secretive. Afterall, why would you share your research to the public and lose your “edge”? Secondly, value investing is not as exciting as trading so the general public and businesses tend to avoid it like the plaque.
But getting started in value investing is possible without attending a value oriented school like Columbia University. It takes time, a bit of money and most importantly commitment. I am going to assume you have at least an understand of value investing and some of the vocabulary that goes along with it such as margin of safety, intrinsic value, discounted cash flows, etc..
Books On Value Investing
While I do not read value investing books like I used to, I will always recommend a handful of books that will get you pointed in the right direction and really lay a solid foundation as to what value investing is all about. Below are three value investing books that are readily available at Amazon.com at very cheap prices. They are listed in order from beginner to advanced. Read these several times (especially Security Analysis) as reading them one time is not enough to soak in all the information.
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The Little Book That Still Beats The Market- Joel Greenblatt
- The Intelligent Investor- Benjamin Graham
- Security Analysis- Benjamin Graham and David Dodd
- SEC Filings- Go straight to the source. Company’s have to file 10-K (annual) and 10-Q’s (quarterly reports)
- Any company’s investors relations page to view investor presentations, listen to conference calls, and possible industry news. make sure to subscribe to a company’s press releases.
- Gurufocus Premium- A website devoted to following successful hedge and value fund managers. Its real time picks feature is amazing and allows to invest in a stock when Gurus report the trades.
- Morningstar Premium- Its research teams covers over a thousand stocks and has a very easy 1-5 star rating on stocks with 5 stars being a potential buy. Not too mention you get access to mutual fund reports that are second to none.
- Old School Value Premium Spreadsheets- I cannot recommend this enough. It leans towards the quant side of stock research but you have everything in front of you at a VERY reasonable price. With the premium spreadsheets you are able to eliminate the math side of stocks but you do have to use common sense and additional research to get the full benefit of it.
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