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r/valueinvestingr/valueinvesting· u/GM_Will· 6d agoBasics / Getting Started 14

Getting started to begin value investing as a college student

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College student seeks book recommendations to learn value investing basics and strategy formation.

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Hi there. I'm a college student who recently became interested in value investing. I have a strong background in math, but I'm not well accustomed to the stock market. I am currently starting to read Technical Analysis Explained by Martin J. Pring.

Are there any recommendations for books or materials that can quickly strengthen my background to at least start investing? I am looking more towards the actual investing side and less towards the psychological side, as right now I have no knowledge of how to begin and form my own strategy.

Discussion · top comments15 selected
u/Baltimora91 3· 6d ago

Hereunder some valuable reading:

  • Intelligent Investor
  • Security Analysis
  • Common stock uncommon profit
  • From Graham to Buffett and Beyond
  • Competition Demystified
  • Expectations Investing
  • Poor Charlie’s Almanak

Remember that Investing is understanding the business and your limitation and bias, look for mental models which can help you not for formulas

u/MatricesRL 1· 6d ago

I will finish reading The Intelligent Investor, someday, but not today

I'd add two more books:

  • Margin of Safety
  • Expectations Investing
u/JamesWardVI 2· 6d ago

One heads up worth mentioning: Pring's book is technical analysis, which is a pretty different philosophy to value investing. not wrong to read it, but it won't get you far if you're trying to evaluate businesses.

For your math background, I'd start with The Intelligent Investor by Graham, then go straight to Buffett's shareholder letters (free, and honestly, the best investing education I've come across). Your quantitative skills will be a real asset once you get into financial statements and ROIC.

What specifically drew you to value investing over other approaches?

u/GM_Will 1· 5d ago

I don't really know the many approaches, so would like to start somewhere.

u/fundamentalinvesting 1· 5d ago

As a starting point, I would read: Essays of Warren Buffett by Lawrence Cunningham, The Warren Buffett Way by Robert Hagstrom, the Intelligent Investor by Benhamin Graham.

Remember - stock investing is about viewing stocks as pieces of businesses. Books can go a long way, but you'll get good at analyzing businesses by analyzing businesses.

u/syndr0m1412 1· 6d ago

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u/Ancient_Bobcat_9150 1· 6d ago

Many great recommendations - I particularly enjoyed Value Investing: From Graham to Buffet (not an easy read, though) and 5 Rules for Successful Stock Investing. Download some samples for Kindle if you can.

What I would add is:

Don't rush. It is easy to fall into a rabbit hole, especially with books.

Start with a broad and boring index fund/ETF so you already start passively putting money into work while you build up enough knowledge.

Psychology is important when you begin because it should humble you. Everything is not about stat and numbers. I like that quote from Buffet: You don't have to be the smartest one, you just have to be more disciplined"

u/NoName20Investor 1· 6d ago

Here is a list of key resources for investing: https://investingliteracy.substack.com/p/key-resources

u/NinjAsger 1· 6d ago

Investing and trading are different beasts, requiring completely different skill sets.

If you wanna do investing a good start is One Up Wall Street.

My favourite book is Fooled By Randomness though it is neither a investing - or trading tool book.

For investing I think the most important aspects is competitive advantages and moats (Porters).

Industry insights are important as well (Pestel & swot might be too basic, but it is tools).

For quicker content (YouTube) The Swedish investor has content where he does short presentation of books; this is a quick way to get some basic knowledge. Pension Craft and Ben Felix are good if you wanna do fund investing. The Plain Bagel goes over some basics and news. Patrick Boyle is covering finance news; will help you get insight into what is going on and why. Aswath Damodaran has a youtube profile as well - asbelutely worth a watch also if you are looking to do fundamental analysis.

On your note on not looking for the psychological side - there are a lot of common pitfalls and biases, that are absolutely detrimental both in trading and investing - that I think everyone should know.

u/Healthy-Balance1281 1· 4d ago

thanks foe sharing

u/ESSolberg 1· 6d ago

I would recommend “The Simple Path to Wealth” it’s a great starting point and an easy read.

u/FieryXJoe 1· 6d ago

Some of my favorites so far are The Intelligent Investor which is basically the foundation of this school of investing. The Snowball which is Buffett's biography and basically lays out a path to ludicrous wealth through applying the teachings as well as how he evolved them as he went from $0 to the richest man on the planet. Currently reading Richer Wiser Happier which is by a dude who interviewed about a dozen famous investors (mostly value investors) who beat the market over decades and gives their investment history, life story and personal/investment philosophy. Some other ones I recommend are The Little Book that Beats the Market, Margin of Safety, One up On Wall Street.

u/hockeyjerseyaccount 0· 6d ago

Time in the market typically beats timing the market. Consider investing in index etfs/funds while you learn the basics of investing. Index funds outperform most actively managed funds.

u/GM_Will 1· 6d ago

Would you recommend any materials/books for me to learn the basics then?

u/hockeyjerseyaccount 1· 6d ago

Anything Warren Buffett recommends.