Where to find shareholders letter

However, it is important to understand that the shareholder letter, along with many other parts of the annual report, is normally written in a way to put the company's operations in the best possible light. Investors will want to take the information in the shareholder letter with a grain of salt and be sure to delve more deeply into the firm's financial results and perform independent research on the company and its industry before drawing conclusions.

The letter may address specific items within the company's financial statements or filings such as the K or Q , so it can be a good idea to look for information within these documents that substantiate claims made within the shareholder letter.

Even accounting for potential skews or positive spins in a company's shareholder letter, the shareholder letter is still a valuable resource in getting a sense of the outlook of executives—primarily the Chief Executive Officer's—of how well a company is doing.

Many times, investors will dive deep into the shareholder letter to forecast or reason why the firm is doing better or worse than anticipated. The shareholder letters of publicly-traded companies are available for investors and non-investors alike to view.

Two of the most anticipated shareholder letters each year come from Warren Buffett's lucrative Berkshire Hathaway Inc. A , BRK. B company, as well as from e-commerce giant Amazon. For example, the key takeaways from Warren Buffett letter include advice to focus on the company's operating earnings, the power of long-term equities, and understanding the acquisition track record of the company.

Meanwhile, in Amazon's shareholder letter, outgoing CEO Jeff Bezos shared everything from the membership of its popular Amazon Prime service, to the value Amazon has created for various stakeholders.

Designed to be a personal statement of sorts from company leadership to its shareholders, the shareholder letter from Jeff Bezos also included a short story from his life to help illustrate a business concept. Ultimately, executives can communicate whatever they feel is best in order to appease and please its shareholders.

Berkshire Hathaway. Warren Buffett. Top Stocks. Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Explain any terms that are not immediately known to a non-finance expert. Kulicke and Soffa distills a wildly complex technology into simple concepts that anyone can understand. In response to these changing fundamentals, an explosion of research and investment in back-end advanced packaging solutions, targeting both performance and cost-sensitive applications, is presenting very interesting opportunities for the Company.

SYKES does a good job laying out industry trends, new technologies, and competitive positioning. From headline-grabbing technology solutions to subtle shifts in client strategies, we aim to equip our shareholders with valuable market intelligence to distinguish fleeting buzzwords from business-driven advancements.

Make it easy to invest in the company by weaving a story. The easier a management team makes it to retell an investment thesis, the better institutional salespeople will retell the story, the more analysts will pitch to their portfolio managers, and the more retail investors will pitch to their friends at dinner. Ideally, a stock pitch or investment thesis includes: how the company makes money, what the drivers of the stock are, the risks, and a nod to valuation.

If a company boasts about beating consensus earnings every quarter, this attracts a shareholder base that will expect that to continue. If a company consistently talks about long-term goals, their investor base will likely be less concerned with quarterly fluctuations. Inogen , a healthcare equipment company, concisely conveys a tenet of the investment thesis. Despite the benefits that portable oxygen concentrators offer to patients and providers, the market remains under-penetrated.

That is entertaining. Providing entertainment in a shareholder letter is a wildly low bar too. Try not to start off with numbers. When using numbers, use them sparingly. Stay away from jargon. Say something different. Start out with an anecdote. Start with a quote.

Start with a simple but relevant idea discovered on the treadmill. By far, the most entertaining letters possess all the traits listed above define the company, tell a story, be candid, educate but when that was all done in a compelling and plainly written way—free of jargon and meaningless corporate phrases—those were truly a joy to read.

The Biglari shareholder letter was a masterpiece. And it introduces ways the CEO thinks about his company that many have likely not considered before. Biglari Holdings — This one is a delight to read. Biglari is a conglomerate that owns restaurants, an insurance company, and Maxim magazine.

Think of Biglari Holdings as a museum of businesses. Our preference is to collect masterpieces, such as First Guard Insurance Company, an entrepreneurial success story. We are able to provide a permanent home whereby the business, its headquarters, and its personnel remain in place.

In other words, we seek the absence of change. Gallagher, Chairman and CEO, does not tiptoe around the fact that this strategy must change due to its aging aircraft. He clearly lays out the tough transition ahead as the company must finally upgrade its aircraft. However, once the transition is completed, we will return to our ultra-low cost structure critical to our success.

Acadia Realty Trust — When the broader issues of an industry in trouble are not addressed, it can lead investors to think that management has their heads in the sand.

The CEO of this REIT clearly describes the backdrop and what specifically has led us to the currently fraught retail environment—from Amazon to fast fashion—and details how his company will come out stronger on the other side.

Additionally, the CEO reminds investors that Acadia suffered through a really tough retail environment and survived it—a quick history lesson provides welcome comfort. Dime, however, explains its underperformance relative to other banks in a candid, forthright way and seeks to address some misperceptions.

This is a management team that is prudent and thoughtful, and it shows in their investor letters. Strayer also does an excellent job explaining who they are, where they came from, and what their vision is going forward.

Waddell and Reed — Curious about what has been going on in asset management? This letter lays out the reasons behind the mass exodus from active to passive investing and why this tide may begin to turn. Waddell asserts that low growth, low inflation, and low interest rates have led to a high correlation of assets, which has proved a difficult backdrop for active managers.

With the Federal Reserve indicating that it intended to raise interest rates at a measured pace in , the possibility for higher dispersion among asset categories would arise, and therefore, so would the stage be set for improved active manager performance.

Peter Vozzo is a Managing Director on Westwicke's life sciences, healthcare services, and healthcare technology teams. He has extensive experience in investor relations. View full bio Other posts by Peter Vozzo. Conduct a perception audit. Download Now. Conducting a perception audit is an important way to strengthen your company and your relationships with investors. Unit , Tower 1, Prosper Center No. Get our complete guide to perception audits.

Westwicke Blog The ICR Westwicke Blog is designed to deliver information and insights into the ever-changing world of healthcare communications. The first objective of your letter is to correctly describe the state of your business.

Perhaps it should go without saying that the letter cannot include any errors. The same process you use when you issue a press release or other public statements should be deployed here. The stakes are even higher: A press release can be corrected or amended. Your letter to shareholders will be included in your Annual Report and printed by the thousands.

The credibility damage of a letter that includes mistakes or typos will endure. Make sure all appropriate parties — especially your CEO, CFO, general counsel, and head of investor relations — review and approve every iteration of the letter. Focus on clarity. Even if all your facts are accurate, the value of your letter is diminished if it is poorly written. All business communication must be clear, and your shareholder letter is no exception. Investment analysis is often a very complicated process.

Simplify it with liberal use of bullets and cut out the business jargon. Most importantly, stick to what matters to your investors: your recent successes, your immediate prospects, and your long-term objectives. Keep it brief. Brevity is the soul of wit. Warren Buffet can get away with a sweeping letter that that tops 18, words and stretches more than 30 pages.

Many of the best letters to shareholders are a page or two. Cut the baloney.