Investing Between The Lines - L.J. Rittenhouse

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[amazonsearch]Investing Between The Lines[/amazonsearch]

 

Has anyone else read this book? Just received my copy this week and I'm already halfway through it. I think it is a fantastic read and one for every investor's library.

 

The book focuses on the softer side of analysis which is deciphering CEO letters and management communication. Some notes:

 

- "Executive communication is the window into the culture, value, operations and prospects of the business"

 

- A sustainable business model is based on 7 primary systems: Accountability, Strategy, Vision, Leadership, Candor, Relationship and Capital Stewardship

 

- A strong system of accountability supports the execution of strategy. No accountability, leads to squandering of investors capital.

 

- Strong leadership is required to support a corporate vision. Without strong leadership, a company is likely to have a diffuse and unoriginal vision that can waste shareholder equity.

 

- Candor ensures that stakeholder relationships are built on trust. Without Candor, trust cannot grow or flourish.

 

- Capital Stewardship is the hub of the model, it reveals whether managements actions are based on attitudes of being entrusted with or entitled to investor capital.