The recipe to become a successful value investor

Back in 2003, reading The Intelligent Investor blew my mind. I had been a financial reporter for a couple of years, in a publication that was supposed to give valuable investing ideas to individuals. From 2001 to 2002 we just witnessed the market crash, and failed to help investors protect their capital. All the way down to capital destruction, bad investment advices, all to be ashamed of when I think about it in retrospect (I sincerely apologize for that by the way).

After having read Graham’s book, I actually wondered why no one had ever asked me to read the book BEFORE I joined the newsroom… The paper is still in business, but I’m not sure their readership has greatly expanded since 2003…

Fast forward to 2010 and the start of this blog. I don’t remember how but I had the chance to read Klarman’s book after discovering a portrait of him. Another mind blowing experience. I think anyone who wants to better grasp what value investing is and how to better prepare your mind when dealing with financial markets should read the book.

This year, I attended the annual meeting of Berkshire Hathaway for the second time. This was a really fantastic experience because not only did I have the chance to listen live to the most respected investors in the world, but I also had a chance to meet incredibly nice people who were just there, like me, because basically they felt this was THE place to become a better investor.

One of the people I met already knew much more than me about Buffett & Munger, and while we were discussing, just stood up and went to talk to people like Guy Spier and Mhonish Pabrai… whose books he had read long time ago. I knew those names, I knew they both had published books, but actually never thought about reading them.

Since I came back I decided to order a couple and over the last couple of weeks, I have read Damn Right!, which is an authorized biography of Charlie Munger, The Education of a Value Investor from Guy Spier, a very nice autobiography about his journey to become a value investor and I’m just about to finish The Dhandho Investor.

All those books are must read ! Each will give you a different reading experience. Of the 3, Pabrai’s book looks to me as the perfect recipe to become a value investor. It’s full of real life examples both on and out of the stock market and it gives you the whole mental framework to deal with investing the proper way. And it is really fun to read !

So if I can give a very strong recommendation here, order those 3 books right away and start reading !

DISCLAIMER

I own some Berkshire Hathaway Class B shares.

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