InvestED Ep. 171 - InvestED Book Club: 'Investing Between The Lines'

by: Phil Town

In this episode, Danielle gets started on the long-awaited InvestED Book Club! This week Danielle introduces our first book, Investing Between the Lines by L.J. Rittenhouse and reinforces the importance of always continuing our learning. BONUS: This week Danielle lets us listen in on an interview she had with the book's author, L.J. Rittenhouse.

In Episode 171 You'll Learn:

Book Club Book #1

What is Investing Between the Lines all about?

  • Investing Between the Lines was written in an effort to show investors how they can be more conscientious when making decisions by reading and analyzing CEO communications.
  • Investing Between the Lines was recommended by Warren Buffett, a personal contact of the book's author, L.J. Rittenhouse.

Why is it important to look at CEO communications?

  • If analyzed, CEO letters can give us insight into whether or not the CEO is trustworthy and will continue to be a representation of the company's core values.
  • Though some letters are not written by the CEOs themselves, it is important to remember that these letters represent the CEO.
  • By focusing on what Rittenhouse refers to as FOG and candor, we can determine whether or not a letter (and CEO) are trustworthy and will continue to represent the company's values and best interests.

What is FOG?

  • FOG is also known as Fact-Efficient Obfuscating Generalities.
    • Essentially, FOG occurs when a CEO's letter is written to include deceptive or misleading information.

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