Value Investing, Behavioral Finance Reading List

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Value Investing, Behavioral Finance Reading List
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Value Investing, Behavioral Finance Reading List by SG Value Investor, The Value Edge

The main determinant of successful investing is often information, or knowledge. A single investment decision most often employs an array of different concepts and models – Accounting, Finance, Economics etc. This is echoed by Charlie Munger in his speech on worldly wisdom. He raises the idea that to be a successful stock picker, one needs some general education and multiple models from multiple disciplines. These models will make you a worldly-wise person who is able to explain and comprehend most of the reality around you. In that spirit, I would like to share the titles in my current reading list – some have already been read but most have not so just take them as mere suggestions for your future readings.

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Biographies

Buffett: The Making of an American Capitalist – Roger Lowenstein
The Snowball: Warren Buffett and the Business of Life – Alice Schroeder
Benjamin Graham on Value Investing: Lessons from the Dean of Wall Street – Janet Lowe

Economics

The World Is Flat 3.0: A Brief History of the Twenty-first Century – Thomas Friedman
Why Nations Fail: The Origins of Power, Prosperity, and Poverty – Daron Acemoglu
The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor – David Landes
The Wealth of Nations – Adam Smith

Fund Manager Profile: Zhang Hui Of China’s Southern Asset Management

investHistorically, the Chinese market has been relatively isolated from international investors, but much is changing there now, making China virtually impossible for the diversified investor to ignore. Earlier this year, CNBC pointed to signs that Chinese regulators may start easing up on their scrutiny of companies after months of clamping down on tech firms. That Read More

Classics

The Intelligent Investor: The Definitive Book on Value Investing – Benjamin Graham
Security Analysis – Graham and Dodd
Value Investing: From Graham to Buffett and Beyond – Bruce Greenwald et al
Margin of Safety: Risk-Averse Value Investing Strategies for the Thoughtful Investor – Seth Klarman
Common Stocks and Uncommon Profits and Other Writings – Philip Fisher

Value Investing

Value Investing: A Balanced Approach – Marty Whitman
Value Investing: Tools and Techniques for Intelligent Investment – James Montier

General Investing

Investment Philosophies: Successful Strategies and the Investors Who Made Them WorkInvestment Philosophies – Damodaran
The Little Book That Still Beats the Market – Joel Greenblatt
The Handbook of Fixed Income Securities, Eighth Edition– Frank Fabozzi
Quantitative Value, + Web Site: A Practitioner’s Guide to Automating Intelligent Investment and Eliminating Behavioral Errors – Wesley Gray and Tobias Carlisle
Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations – Tobias Carlisle
The Interpretations of Financial Statements – Benjamin Graham

Competition

Competition Demystified: A Radically Simplified Approach to Business Strategy – Greenwald & Kahn
Measuring the Moat – Michael Mauboussin

Behavioral Finance

Behavioural Investing: A Practitioners Guide to Applying Behavioural Finance – James Montier
Seven Sins of Fund Management – James Montier
Psychology of Human Misjudgement – Charles Munger

Investment Firms

Liar’s Poker –Michael Lewis
When Genius Failed – Lowenstein
The Big Short: Inside the Doomsday Machine – Michael Lewis
Flash Boys – Michael Lewis

Miscellaneous

Critical Mass: How One Thing Leads to Another – Philip Ball
The Black Swan – Nassim Taleb
Fooled by Randomness – Nassim Taleb

Feel free to raise a comment if you have any suggestions.

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I developed my passion for investment management especially equity research at a relatively young age. My investment journey began when I was 20, at a point in time where markets were still recovering from the Global Financial Crisis. My portfolio started from money I saved over the past years and through working during the holidays. I was fortunate to have a good friend with common investing mentality to began my journey towards value investing. To date, we still research and invest in companies together, discussing valuations and potential risks of a company. To date, I manage a fund with a value investing style. Positions are decided upon via a bottom-up approach or smart speculation (a term I came up with when buying a stock for quick profit due to a mismatch in prices in the market due to takeovers/selling of a subsidiary or associate). Apart from managing my own portfolio, I enjoy sharing my research with family and friends, seeking their opinions and views towards the stock. Reading Economics in London, I constantly keep up with the financial news in Singapore & Hong Kong. Despite my busy schedule, it has not stopped me from enjoying other aspects of life. I enjoy a variety of activities in whatever free time I may have – endurance running, marathons, traveling, fine dining, whiskey appreciation, fashion. Lastly, I enjoy meeting new people, discussing ideas and gaining new perspectives towards issues in the world.
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1 COMMENT

  1. While I hate to toot my own horn, the reality in the publishing world is that if I don’t do it no one will… So I will mention my book, The Intelligent Option Investor: Applying Value Investing to the World of Options (McGraw-Hill, 2014). This book offers a practical guide to understanding the value of a company (and its stock) and also has a chapter on behavioral biases and what I call “structural impediments” (the way the Investing Industrial Complex convinces investors to pay attention to things that don’t matter–agency / principal issues, in other words). Here’s a link to the Amazon page… http://www.amazon.com/Intelligent-Option-Investor-Applying-Investing/dp/007183365X/ref=sr_1_1?s=books&ie=UTF8&qid=1415295370&sr=1-1&keywords=the+intelligent+option+investor

    It has been getting some good reviews from other institutional and individual investors. I hope you will consider reading it as well!

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