market folly

Teaching a class on Value and Special Situation Investing at Columbia's Business School, Joel Greenblatt provided a recommended reading list and we wanted to detail this below. Greenblatt is the founder of Gotham Capital, a noted value investor, and the founder of the Value Investor's Club as well. Here's his recommended reading list:

You Can Be a Stock Market Genius by Joel Greenblatt. Baupost Group's Seth Klarman also actively recommends this book as it examines catalyst based investing such as spin-offs, mergers, risk arbitrage, etc in an effort to exploit market inefficiencies.

Security Analysis on Wall Street by Jeffery Hooke. A great book we've also read that highlights how to analyze a stock in step-by-step fashion. If you're in the markets professionally or want to refine your valuation skills, this is the textbook for success.

New Finance by Robert Haugen. This book focuses on evidence, causes, and the history of overreactive pricing in the stock market.

Value Investing: From Graham to Buffett and Beyond by Bruce Greenwald. This book is authored by another well-known Columbia Business School professor.

The Essays of Warren Buffett by Lawrence Cunningham. Self-explanatory and a great read.

The Little Book That Still Beats the Market by Joel Greenblatt. Application of a formula that seeks out good businesses trading at bargain prices.

Contrarian Investment Strategies by David Dreman. Teaches and advocates going against the crowd by buying stocks that are out of favor and selling the 'darling' stocks.

What Works on Wall Street: A Guide to the Best-Performing Investment Strategies of All Time by James O'Shaughnessy. Examines three decades of stock market data to demonstrate the viability of 15 of the most common investment strategies.

The Intelligent Investor by Benjamin Graham. Considered to be the best book on value investing out there, this title is also recommended by the likes of investing greats Warren Buffett and Seth Klarman.

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That wraps up Joel Greenblatt's recommended reading list. This joins our coverage of other books advocated by prominent investors such as:

- Seth Klarman's recommended reading list (Baupost Group)

- Dan Loeb's favorite reads (hedge fund Third Point LLC)

- Hedge fund Blue Ridge Capital's picks