Companies that want more shareholders can learn from the way Warren Buffet communicates.
Most corporate writers use professional language but the problem is, professional doesn’t always mean effective.
When it comes to attracting more shareholders, plain language is the way to go.
- Plain language gets your message across in the shortest time possible.
- More investors are able to understand your message.
Many studies have shown that plain language affects your bottom line—you can save time, personnel resources, and money.
The point of your investor marketing copy is not to show investors how smart you are, it’s to make them feel smart because when investors feel smart, they become confident and thats exactly what you need when you want investors buying your stock or funding your projects.
Want More Shareholders? Write Like Warren.
Warren Buffet was challenged to translate this document consisting professional language into simple language.
Maturity and Duration Management
Maturation and duration management decisions are made in the context of an intermediate maturity orientation. The maturity structure of the portfolio is adjusted in the anticipation of cyclical interest rate changes. Such adjustments are not made in an effort to capture short-term, day-to-day movements in the market, but instead are implemented in the anticipation of longer term, secular shifts in the levels of interest rates (i.e. shifts transcending and/or not inherent in the business cycle). Adjustments made to shorted portfolio maturity and duration are made to limit capital losses during periods when interest rates are expected to rise. Conversely, adjustments made to lengthen maturation for the portfolio’s maturity and duration strategy lie in analysis of the U.S. and global economies, focusing on levels of real interest rates, monetary and fiscal policy actions, and cyclical indicators.
Warren Buffett’s revision:
We will try to profit by correctly predicting future interest rates. When we have no strong opinion, we will generally hold intermediate term bonds. But when we expect a major and sustained increase in rates, we will concentrate on short-term issues. And, conversely, we will focus on the big picture and won’t make moves based on short-term considerations.
Which version do you think will help investors feel smart and confident? Long and confusing or short and clear?
The success of your investment brand lives in your investor communications which is why investor marketing copy that is easy to read and understand serves both your potential investors and your bottom line.
Clear communication drives business results and Investor Testing is a great way to audit and assess your marketing materials.