I am making no apologies for the clickbait… this really is the best book on value investing…
If you were to google the most popular value investing book of all time, you would find Ben Graham’s The Intelligent Investor in almost every list.
I have read it a few times and it is very good. The problem is that many of the ideas are outdated. The idea of buying utility stocks with a PE ratio of <5 is almost laughable in today’s investing environment…
I liked many of the ideas in Graham’s books, I was just disappointed that they were so dated. That is until I came across another book last night…
Margin Of Safety - Seth Klarman
And to be honest, I was blown away. Klarman goes into extraordinary detail explaining how you can use modern value investing strategies to generate sizeable, juicy returns. He goes into a pretty wide variety of topics from distressed mortgage debt to government bonds from obscure emerging economies to long-term rolling options.
And it’s absolutely fascinating.
I had read that Klarman’s book was a cult hit amongst hedge fund managers. It currently sells for +$800 on eBay.
And Klarman has the financial chops to back it up. Klarman’s Baupost group has posted 15% annual returns since his career began. Klarman is the classic value investor, only opening his wallet when prices have completely bottomed out. He is well-known to hold 30% cash on average and sometimes even 50%! Klarman is also financially successful himself, having ammassed a $1.5 bn. fortune over the years. Not bad.
Where Can I Get A PDF Of Seth Klarman’s Margin Of Safety?