As arguably the most successful investor of all time, Warren Buffett has earned a certain licence to write how he pleases. And what famously pleased the Berkshire Hathaway CEO when writing letters to his own shareholders was a frank conversational style rich in anecdotes, analogies and self-deprecating humour.
The billionaire understood that investors were emotional decision-makers, not just rational actors, and that wrapping his firm’s financial performance in an engaging narrative would make it more memorable and persuasive.
While it would be risky for companies without Buffett’s track record to imitate his storytelling style, there is something we can all learn from it. Here, we share some of the rationale from our own storytelling methodology to show how you can meet investor expectations with techniques passed down over millennia by campfire chroniclers.
Investor expectation: Concise
Like a briskly plotted thriller, investor-focused content should have a tight, logical structure that makes these busy stakeholders feel in safe hands.
Being concise is about cutting flabby detail and duplication, yes. But it’s also about drawing readers quickly into your world and making it easy for them to read on.
What does ‘concise’ storytelling for investors look like?
- In reports and presentations, ease audiences in with crisp leadership statements that bring the most distinctive and important insights to the top rather than burying them in a chronological account or beneath generic macroeconomic statements.
- Set a vigorous pace by using descriptive headings and at-a-glance graphics to split dense passages into scannable pages.
- Join the dots between your purpose, business model, strategy and impact so that everything connects and reinforces the same story, making investors feel like an insider.
- Help readers quickly grasp your goals, the challenges you’re tackling and the outcomes of your actions so that they feel the momentum of your progress and a sense of excitement about your long-term trajectory.
Together these techniques will help your content feel concise even if you have a lot to say.
Investor expectation: Meaningful
Agatha Christie made a point of reintroducing us to the “strange little” Belgian man with the “large moustache” who appeared in 38 of her bestselling novels, just to make sure every reader had a clear mental image of Hercule Poirot. Yet we find companies often leave out fundamental information about their business, industry or market context in communications in the belief that an investor audience will already know it.
As one investor recently lamented to the UK’s Financial Reporting Council: “What’s often missing [in annual reports] is an explanation of what the business actually does and how it makes money.”
What does ‘meaningful’ storytelling for investors look like?
- Think like an outsider when you write and proof your content.
- When you name-drop teams, products, initiatives or tools that outsiders might not be familiar with, explain what they are and why they matter.
- Resist the urge to abbreviate terms just because you use acronyms for them internally. Acronyms can jar, confuse and alienate, so use them where you know they will make sense to the reader and save them time.
- Provide context and examples to conjure mental imagery and aid understanding.
Examples don’t have to be in the form of lengthy case studies. Meaningful storytelling is what converts “We’re leveraging the power of AI to drive operational efficiencies across our fleet,” into “Our new AI tool analyses delivery routes and reshuffles them so our drivers spend less time idling at red lights.”
Investor expectation: Credible
From JK Rowling to James Patterson, the world’s blockbuster authors are testament to the power of plain English. Why then would professionals in the capital markets be impressed by fancy words and convoluted sentences? On the contrary, using needlessly complex language makes writers seem less intelligent to readers, not more, according to a 2005 study by Daniel M. Oppenheimer of Princeton University.
If you can’t say something plainly, investors may also assume you have something to hide.
“I like plain speaking in the statement of the chief executive,” wrote veteran fund manager-turned-consultant Rosemary Banyard in a recent blog for UK firm Downing. “I am looking for unambiguous language, passionate beliefs, and an honest assessment of risks. I want to have the sense that the chief executive personally crafted their statement.”
What does credible storytelling for investors look like?
Swap business jargon for plainer words to show you prioritise transparency and understanding over sophistication.
- From this: Optimise, leverage, facilitate, implement
- To this: improve, use, help, set up
Use the active voice to show accountability, rather than the passive voice, which can seem evasive.
- From this: “Steps were taken to address the issue and affected stakeholders were kept informed until full service resumed.”
- To this: “We ran refresher training for the support team on the new process and sent customers status updates every 24 hours until we’d restored full service.”
Ditch clichéd and convoluted sentences for a simpler and more refreshing turn of phrase to show your organisation is human and distinctive.
- From this: “We foster a culture of continuous improvement and customer-centricity as we navigate a landscape of ever-evolving expectations and shifting market dynamics.”
- To this: “As the market shifts, so do we. We’re always learning from our customers and looking for ways to better meet their needs.”
Our team have decades of experience helping global firms like CBRE, Allianz and SwissLife communicate with their investors. If you need support writing engaging copy that meets investor expectations, get in touch.
