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Investing Between the Lines

304 pages, 1994

business & management

business & management

1082 books
money & investing

money & investing

165 books
economics & politics

economics & politics

987 books
Takeaways
Description

Decoding CEO Communications introduces a revolutionary method for evaluating companies. You don't need special access to "insider" information or a degree in accounting to figure it out. In fact, the secret is right in front of you—in black and white—in the words of every shareholder letter, annual report, and corporate correspondence you receive. Too often, corporate executives and investment professionals are expected to deliver short-term results. 

As a result, they are compelled to turn to account techniques and unclear language to meet these expectations. In Decoding CEO Communications , L. J. Rittenhouse lays out her time-tested approach for recognizing at-risk businesses before trouble hits. This is the same method she used to predict the collapse of Enron and the fall of Lehman Brothers .

The Power of Candor

In Investing Between the Lines, L.J. Rittenhouse emphasizes the importance of candor in business communication. He suggests that companies that communicate honestly with their stakeholders often perform better in the market. So, when you're investing, look for companies that value transparency and honesty.

Decoding CEO Letters

Rittenhouse provides a unique perspective on how to analyze CEO letters to shareholders. He believes these letters can provide valuable insights into a company's health and future prospects. So, don't just skim through these letters, dig into them to find hidden clues about the company's performance.

The Rittenhouse Rankings

One of the key features of Investing Between the Lines is the Rittenhouse Rankings. This is a system developed by the author to rank companies based on their communication practices. It's a great tool to check before making any investment decisions.

The Importance of Trust

Trust is a recurring theme in the book. Rittenhouse argues that trust is the foundation of any successful business. Companies that earn the trust of their customers, employees, and investors are more likely to succeed. So, when investing, look for companies that are trustworthy.

Investing is More Than Numbers

While financial data is important, Rittenhouse encourages readers to look beyond the numbers. He argues that the quality of a company's leadership, its corporate culture, and its commitment to stakeholders are equally important. So, when you're researching potential investments, don't forget to explore these aspects as well.

Quotes 3

Investing Between the Lines introduces a revolutionary method for evaluating the financial integrity of a company. You will be forever changed by what you learn.

Warren BuffettWarren Buffett - Investment Guru

Investing Between the Lines is an essential guide for anyone who's serious about investing. It's both practical and enlightening.

Joel GreenblattJoel Greenblatt - Value Investor

Investing Between the Lines is a must-read. It teaches you to 'read between the lines,' a necessary skill for a successful investor.

Howard MarksHoward Marks - Investment Manager
Warren BuffettJoel GreenblattHoward Marks

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