- What is applied value investing?
- "The Intelligent Investor" by Benjamin Graham
- "One Up On Wall Street" by Peter Lynch
- "The Little Book That Still Beats the Market" by Joel Greenblatt
- "A Random Walk Down Wall Street" by Burton Malkiel
- "The Psychology of Money" by Morgan Housel
- "The Warren Buffett Way" by Robert Hagstrom
- "Narrative and Numbers" by Aswath Damodaran
- "Quality Investing" by Lawrence Cunningham, Torkell T. Eide, and Patrick Hargreaves
- "The Most Important Thing" by Howard Marks
- "Value Investing: From Graham to Buffett and Beyond" by Bruce Greenwald
- Why These Books Are Your Secret Weapon
What is applied value investing?
While everyone else chases the next hot stock tip or crypto moonshot, the world’s greatest investors are quietly getting richer using time-tested principles of applied value investing.
But what exactly is applied value investing?
It’s the art and science of finding assets trading below their intrinsic value AND knowing how to act on that information. It’s one thing to know that a stock is cheap – it’s another thing entirely to understand why it’s cheap, whether that discount is justified, and most importantly, what catalysts might help close that value gap.
- Essential Reading List: Books like The Intelligent Investor by Benjamin Graham, One Up On Wall Street by Peter Lynch, and The Little Book That Still Beats the Market by Joel Greenblatt provide foundational principles and strategies for value investing.
- Modern Adaptations: Contemporary books, such as Narrative and Numbers by Aswath Damodaran and Value Investing: From Graham to Buffett and Beyond by Bruce Greenwald, update traditional principles to analyze modern businesses, including asset-light and digital companies.
- Psychology and Market Cycles: Works like The Psychology of Money by Morgan Housel and The Most Important Thing by Howard Marks emphasize behavioral finance, investor psychology, and market cycles, which are critical for long-term investing success.
Warren Buffett, Howard Marks, and Joel Greenblatt didn’t build their fortunes by following the crowd. They did it by mastering value investing principles and adapting them to changing markets. Whether you’re analyzing traditional companies or modern tech giants, the core idea remains the same — buy great assets for less than they’re worth.
Today’s investors need to understand not just financial statements, but also intangible assets, network effects, and platform economics. That’s exactly why we’ve curated this reading list – the collected wisdom of investing legends, updated for today’s markets.
“The Intelligent Investor” by Benjamin Graham
Still the undisputed GOAT of investing books. Warren Buffett calls it “by far the best book on investing ever written” – and who are we to argue? The updated edition with Zweig’s commentary makes Graham’s timeless wisdom incredibly relevant for today’s markets. The chapter on Mr. Market is worth its weight in gold – literally.
- 🔥 Hot take: The value investing bible – teaches you to be rational when others are emotional.
“One Up On Wall Street” by Peter Lynch
Lynch’s masterpiece has sold over a million copies for good reason. His “invest in what you know” philosophy is pure genius in its simplicity. When Lynch ran Fidelity’s Magellan Fund, he turned every $1,000 invested into $28,000. This book shows you exactly how he did it.
- 🔥 Hot take: Use your everyday experiences to find great stocks before Wall Street does.
“The Little Book That Still Beats the Market” by Joel Greenblatt
If Graham wrote the Bible of value investing, Greenblatt wrote the cliff notes – and added a cheat code called the “Magic Formula.” This updated edition proves his strategy still works in modern markets. It’s the perfect starter book for new investors.
- 🔥 Hot take: A simple formula for finding undervalued quality stocks.
The Wharton Online & Wall Street Prep Applied Value Investing Certificate Program
Learn how institutional investors identify high-potential undervalued stocks. Enrollment is open for the Feb. 10 - Apr. 6 cohort.
Enroll Today“A Random Walk Down Wall Street” by Burton Malkiel
The counterargument to value investing that every value investor needs to read. Malkiel’s case for efficient markets and index investing is compelling, and understanding it makes you a better value investor. The sections on market bubbles and investor psychology are pure gold.
- 🔥 Hot take: The case for why markets might be efficient and why indexing works.
“The Psychology of Money” by Morgan Housel
A modern classic that fills a crucial gap in traditional value investing literature. Housel shows why behavior and mindset matter more than techniques. His insights on long-term thinking and risk management are absolutely essential for today’s value investors.
- 🔥 Hot take: Success in investing is more about behavior than intelligence.
“The Warren Buffett Way” by Robert Hagstrom
The most comprehensive analysis of Buffett’s investment approach, updated to include his recent moves in tech stocks and his evolution as an investor. The new edition includes fascinating case studies of Buffett’s Apple investment.
- 🔥 Hot take: A detailed blueprint of Buffett’s investment strategies and evolution.
“Narrative and Numbers” by Aswath Damodaran
The “Dean of Valuation” brings together the art and science of value investing. Damodaran shows how to combine compelling business stories with rigorous financial analysis. His framework for valuing everything from startups to mature companies is unmatched.
- 🔥 Hot take: How to merge storytelling with hardcore valuation metrics.
“Quality Investing” by Lawrence Cunningham, Torkell T. Eide, and Patrick Hargreaves
A modern masterpiece that bridges Graham’s traditional value investing with today’s quality-focused approach. The authors work at AKO Capital, one of Europe’s most successful investment firms, and their insights on competitive advantages and moats are incredible.
- 🔥 Hot take: Modern framework for finding high-quality businesses worth owning forever.
“The Most Important Thing” by Howard Marks
Marks’ memos to Oaktree clients are legendary on Wall Street, and this book distills his best insights. His thoughts on cycles and risk management are particularly valuable in today’s volatile markets.
- 🔥 Hot take: Master class in second-level thinking and market cycles.
“Value Investing: From Graham to Buffett and Beyond” by Bruce Greenwald
The newest edition of this classic is essentially a complete rewrite for modern markets. Greenwald shows how to apply value principles to today’s asset-light companies and digital businesses.
- 🔥 Hot take: How to apply value principles to modern tech and digital businesses.
Why These Books Are Your Secret Weapon
The power of value investing lies in how these different perspectives work together. Graham and Greenblatt teach you the fundamentals of finding undervalued companies, while Damodaran shows you how to value modern businesses using sophisticated frameworks. Lynch reveals the art of finding hidden value in plain sight, while Marks and Housel illuminate how market psychology creates these opportunities in the first place.
Each approach to value investing strengthens the others. When you combine Lynch’s “scuttlebutt” research methods with Damodaran’s valuation techniques, you start seeing opportunities everywhere. When you layer Marks’ understanding of market cycles over Graham’s fundamental analysis, you develop an almost unfair advantage. This is how great value investors are made – not by following one strategy, but by synthesizing multiple approaches.
The beauty of value investing is its adaptability. While markets swing from crypto to meme stocks to whatever comes next, these books teach you the timeless principles that work in any environment. They show you how to think independently, analyze deeply, and act decisively when opportunities arise. These aren’t just investment books – they’re manuals for developing the temperament and analytical skills that separate great investors from the crowd.
The best time to begin your value investing education was years ago. The second best time is right now. These books are your roadmap to building real, lasting wealth in any market environment. They’ve worked for the world’s greatest investors, and they can work for you too.
