The Education of a Value Investor by Guy Spier details his “Transformative quest for wealth, wisdom and enlightenment.”
So should you really expect to get schooled by this new value investing book?
Well, keep reading this book review to find out. In the paragraphs that follow you’ll learn what I liked most about Guy Spier‘s new book, what you can expect to get out of the book, and why it’s a one-of-a-kind value investing book.
Now let’s get down to the business of reviewing The Education of a Value Investor.
What’s “The Education of a Value” Investor All About?
The Education of a Value Investor is about Guy Spier’s quest to become a better value investor, and a better person. The book proceeds in a chronological and autobiographical fashion. So you very quickly get a feel for who Guy Spier is, where he came from, and what he aspires to be.
That makes it all the more interesting to follow, as Guy recounts the bumps he encountered on the way to his dreams. Nothing’s ever as easy as it seems, right? And Guy is refreshingly honest about how his initial ambitions and actions didn’t take him where he wanted to go.
But this book isn’t just the life story of a successful value investor.
While The Education of a Value Investor is relatively introspective, it’s also packed with highly-valuable information that will be of interest to any do-it-yourself stock picker or aspiring fund manager. As much as the book is autobiographical, it’s also instructive.
Let me show you what I mean.
My Favorite Parts of The Education of a Value Investor:
The Education of a Value Investor is an all around great book. But some of my favourite parts of reading it were the actionable lessons for value investors everywhere. And although the whole book carries an instructive and educational tone, there are a few chapters in particular that are especially illuminating.
One chapter of The Education of a Value Investor talks about “Investing Tools” and dictates 8 of Guy’s investing rules that he follows in his own portfolio. It’s neat to get an inside look at how a leading value investor thinks about the challenges that come with managing your own money.
In another chapter, the author shares the importance of an investment checklist. Not only does he explain some of the items on his checklist. But he walks through specific investing case studies and highlights past mistakes that caused him to put these qualifying criteria on his checklist. This chapter alone is worth the price of admission.
I also enjoyed learning more about the friendship between Mohnish Pabrai and Guy Spiers. Long time readers will recall Pabrai is the author of one of my favourite value investing books, The Dhandho Investor. I hadn’t realized how close these two value investors were. I was also pleased to learn Guy is friends with John Mihaljevic who wrote another one of the best value investing books around, The Manual of Ideas.
Obviously, you can learn a lot from this book. But before you rush out and buy The Education of a Value Investor, there’s one thing you should know.
What The Education of a Value Investor Is Not:
While it should be clear that I enjoyed this book, I don’t want you to buy it for the wrong reason. So let me just say…
If you’re looking for a methodological book about how to analyze aspects of value investments, like financial statements or industry fundamentals this probably isn’t the book for you. In fact, you’ll probably appreciate The Education of a Value Investor even more, if you go ahead and read The Intelligent Investor (or Security Analysis) first.
But if you already have this basic foundation in value investing, then you’re sure to appreciate this story about one value investors journey. It’s inspiring, interesting and incredibly informative in ways I didn’t expect possible.
In fact, I’d argue that this book is in the minority of investing books specifically because it does not overly focus on the technical aspects of capital allocation. Instead, you meet a man and watch how he’s dealt with the challenges of life. It’s fascinating. And inspiring.
The Education of a Value Investor – The Final Word:
The Education of a Value Investor was a very enjoyable book. It was only about 190 pages. And I read it in a couple of days because I simply couldn’t put it down. Plus, the book just came out a few weeks ago. So you know it’s relevant to contemporary value investors. For these reasons, I recommend you buy The Education of a Value Investor for yourself on Amazon.
If you’re still not convinced, I encourage you to check out the video book review below.