The Art of Value Investing by Whitney Tilson and John Heins is “How the World’s Best Investors Beat The Market.”
The Art of Value Investing is a book I picked up after seeing an interview on value investing by the author Whitney Tilson. Tilson is also the editor and publisher of the value Investing newsletter, “Value Investing Insight”. So you know Tilson is well-positioned to write about the art of value investing.
So in this short book review of The Art of Value Investing I’ll share with you what I liked about this book and why it’s worth reading. If you have any interest in value investing then I highly recommend you read The Art of Value Investing – here’s why…
Why You Must Read The Art of Value Investing:
The Art of Value Investing is a very good book for any longer-term or fundamental investors. The book is very easy to read and organized in a really interesting format. The Art of Value Investing is similar to Market Wizards because it takes the answer to interview questions from expert value investors.
But there’s one difference…
Instead of interviewing one trader at a time, each chapter of The Art of Value Investing features a bunch of investors weighing in on key aspects of value investing, like portfolio diversification, valuation methods and of course what to look for in a value stock. The Art of Value Investing gets a comprehensive view of all of the most important aspects of value investing and is definitely worth a read.
The Art of Value Investing is also very easy to read because of the Q&A format. You can just read a few interview questions at a time whenever you have a minute. While the book does assume some prior knowledge, this concise format makes The Art of Value Investing easier to absorb.
But here’s my favourite part about this book…
The Best Part About The Art of Value Investing Is:
The best part of The Art of Value Investing is how seriously the book looks at fundamental investing in a contemporary way. The structure makes the book feel like a high level discussion on value investing. So when you read The Art of Value Investing it’s like sitting down for coffee with some of history’s best value investors. For example…
The Art of Value Investing features investors such as Seth Klarman, Warren Buffett and Howard Marks. And at key points in each chapter the authors add commentary and perspective, making the advice in the book that much more applicable. The Art of Value Investing gives a contemporary post-financial-crisis look at how high-level value investors think about the market I haven’t seen anywhere else.
But while I enjoyed The Art of Value Investing, the book may not be for everyone.
What The Art of Value Investing Omits:
The Art of Value Investing is a really comprehensive high-level discussion about fundamental capital allocation strategy. But since the book is only about 300 pages, the focus on strategy necessarily omits some discussion of tactics. This isn’t to say the book isn’t applicable to everyday value investors: you will just need to study it a little bit closer to find the metrics, tactics and tips the value managers in the book suggest.
On the other hand, if you’re looking for basic value investing knowledge and framework, you might be better off reading something a little more applicable like The Intelligent Investor. And if you’re looking for outright fundamental trading strategies you might want to try Jim Cramer’s Real Money instead. The Art of Value Investing only talks about technical analysis in passing (although some value investors pay attention to it).
So while The Art of Value Investing isn’t for everyone, it provides great insight for value investors. And if you’re looking for a current discussion of time-tested value strategies then this book might be for you…
The Art of Value Investing – Final Word:
The Art of Value Investing is a book unlike any other I have recently read. That’s because it features a wide array of perspectives from the best value investors in the world. That’s why I recommend you buy The Art of Value Investing on Amazon. It’s a great book that you can come back to again and again for investing advice.
The Art of Value Investing is like having access to some of the world’s best value investors talking about the most important value investing topics.