I wouldrecommendthe following books for the advanced readers:
1). What works on Wall Street (Latest edition)- This is invaluable for people who believe in probability, statistics and data based analysis.
2.Money ball- You should read this to understand the importance of probability, statistics and data analysis. And how data mining and analysis is changing every aspect of human life.
3). The signal and noise: The art and science of prediction by Nat Silver- If you get carried away after reading Money ball and think you got a magic bullet then this book will give you reality check. You will see why every one is not getting rich quick by doing data analysis. Why you should differentiate signal from plain noise in your data. This guy is super star of prediction and the book is very entertaining read. If you are into probability, statistics and data analysis then you will devour this book.
4). Fortune’s formula - You will learn about betting odds, probability, wagering, speculating but mostimportantlyabout great money allocation and risk management system called Kelly Criterion. The book reads like adventure novel. There is Bell lab,gangsters, how MIT professors beat Vegas casinos usingprobabilityknowledge etc in this book. Fantastic.
5). Damodaran on valuation- already mentioned. I enjoyed reading this book - end to end. He is good teacher and writer.
6). Financial statement analysis and security Valuation- This writer is solid in accounting field and darling of wall street. But I have some grouse against him because he has dismissed DCF, DDM etcoutright. He also asks us to project future for only next 2 or 3 years. But if you want solid treatment of some of very good valuation methods and want to understand how equity analysts value companies and arrive at target price then you need to turn to this book.
7). Valuation: Measuring and Managing the Value of Companies- 5th Edition - From McKinsey consultants. This is highly rated book on valuation. I liked it.
8.Financial Shenanigans- How to Detect Accounting Gimmicks & Fraud in Financial Reports Third Edition by Howard Schilit
9). Quality of Earnings- Same genre as above.
10). Seeking Wisdom- From Darwin to Munger, 3rd Edition- Good book onbehavioralaspects.
11.Your Money and Your Brain - Jason Zwaig
12). Thinking Fast and Slow- Daniel Kahelman - Perhaps THE book on behavioural aspects like our heuristics, biases, irrationality
13). The Wisdom of Crowd- Necessary book for value investors. The book says that the crowds are usually more accurate than experts when they predict the future. Providedcertainconditionsare met. If those conditions are not met then crowds become irrational. Turn into herd or mob.This book will help you understand when you should trust investing crowd and when you should be weary of the crowd. May be after reading this book you will agree that most of the time the crowd/market sets the price correctly. Maybethere is (some times) method in madness when the price drops/rises when news comes out. This book will help you develop healthy respect for majority opinions when certain conditions are met.