Rittenhouse is still on the side of the angels. Warren Buffett, CEO, Berkshire Hathaway
Rittenhouse is a wondrous author! Steve Pomeranz, Financial Adviser and
Nationally-syndicated Talkshow Host
Investing Investing Between the Lines is destined to become a classic…candor is the
language of trust and trust is the basis on which companies ultimately succeed. I highly
recommend this insightful book. Stephen M.R. Covey, Author, The Speed of Trust
L.J. Rittenhouse underscores the increasing importance of candor and accountability in
CEO communication…and is well worth the read for boards of directors, executives and
any professionals involved in investor relations and corporate communications.
Mark Lazenby, Former Director of Communications, Fortune 500 Company
By ROBIN GOLDWYN BLUMENTHAL, January 12, 2013
Future Perfect? Frank Talk, Fine Returns
Read those CEO shareholder letters! Leaders who keep their word tend to run more efficient, productive, and successful companies.
If “language is the mother of thought, not its handmaiden,” as the Austrian journalist Karl Kraus said, investors ought to pay better attention to the way CEOs, the stewards of their capital, express themselves.
That idea is the premise behind a new book from McGraw-Hill that explores the relationship between stock picking and executive candor: Investing Between the Lines, by L.J. Rittenhouse. An investor-relations specialist, Rittenhouse has compiled an annual survey of CEO shareholder letters since 1999 that ranks 100 big companies based on seemingly unquantifiable metrics relating to corporate culture and candor.
“Our research shows that leaders who respect their word and honor their promises…run more efficient, productive, and successful companies,” says Rittenhouse, a former banker for Lehman Brothers.
Not exactly scintillating but worthy of investor attention, Rittenhouse’s annual company rankings have consistently shown a convincing link between executive candor and stock returns. Indeed, Rittenhouse raised a red flag on Enron before it failed, noticing a discrepancy between the net income cited in its CEO letter and its audited financial statement, among other things.
The latest survey, of the 2011 reports, found stocks in the top quartile outperformed the S&P 500 index by an average of 6.8 percentage points. On top: Church & Dwight, Alcoa, and Southwest Airlines . At the bottom: American International Group, Bank of America, and Cisco Systems. Word Up!
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