Is plain English for financial dummies?

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“We don’t want our clients to think we’re dummies.” When I encourage my clients to use plain English, they sometimes push back. They’re afraid they’ll seem stupid.

I disagree. I think plain, clear writing shows respect for your client’s time. I’m not alone in my belief. Folks like investor Warren Buffett of Berkshire Hathaway and former SEC chair Arthur Levitt agree with me. So does The Wall Street Journal.

Warren Buffett on plain English

Here’s what Warren Buffett says:

When writing Berkshire Hathaway’s annual report, I pretend that I’m talking to my sisters…. They will understand plain English, but jargon may puzzle them.

Despite Buffett’s easy-to-understand style, plenty of financial sophisticates read his firm’s annual report.

By the way, Buffett’s quote comes from the SEC’s A Plain English Handbook, a great free resource.

Arthur Levitt on financial disclosures and language

Here’s former SEC chairman Arthur Levitt’s take on plain English:

For the language of financial disclosure, we need to raise the standard from “potentially understandable” to “impossible to be misunderstood.”

Take a few minutes to see if your writing passes “The Levitt test for financial risk disclosures.”

The Wall Street Journal

Almost every financial sophisticate in the U.S. reads The Wall Street Journal. The newspaper does a good job of making their content accessible to the less sophisticated. For some examples, see “Let’s get parenthetical.”

What about YOU?

What do YOU think about using plain English in your financial communications? What is one step you recommend to others who’d like to use plain English?

For more on plain English, see “Plain English and good writing.”

 

Image courtesy of ImageryMajestic / FreeDigitalPhotos.net

Should you correct other people’s writing mistakes?

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The quality of your writing affects what other people think of you. That’s a good reason to polish your writing. But what if you see errors in other people’s writing? Should you tell them if you’re not working as an editor? It depends. I pose four questions that can help you decide whether to act.

Ask these questions before you correct someone's writing infographic

1. How serious is the error?

Some errors are more important than others. If a writer repeatedly refers to “portfolio mangers” instead of “portfolio managers,” that’s embarrassing. It also suggests a sloppiness that reflects poorly on the individual and whatever organization is publishing the piece in which the error appears.

2. Does the error make the writing difficult to understand?

Some errors make it hard for readers to grasp the writer’s message. I dislike this kind of error more than one that’s wrong, but can be glossed over by the reader.

For example, when a writer pens a garbled introduction followed by paragraphs that lack strong topic sentences, you know that readers will struggle. This kind of error is worthy of correction.

On the other hand, some things are widely viewed as errors are open to debate and don’t—in isolation—make a piece much harder to understand.

Take “irregardless,” one of the many “mistakes” that Shea Ammon tackles in Bad English: A History of Linguistic Aggravation. “One may not like this word, but that is far cry from it not being a word,” says Ammon.

If I saw one instance of “irregardless” in an otherwise well written piece, I wouldn’t tell the author unless I was wearing my editor’s hat. After all, most readers would grasp the meaning, even though the word has an extra syllable and, as Ammon concedes, “It is admittedly difficult to offer much by way of defense to the word irregardless.”

3. What’s your relationship with the writer?

Tread carefully if you lack a close relationship with the writer, particularly if they’re senior to you in your organization. A correction can sour your relationship. It’s not just senior folks whom you need to worry about. Many people are sensitive to correction.

4. Can you phrase your correction nicely?

Be nice when you make corrections. A classic suggestion is to criticize the writing, not the person. Nobody enjoys criticism, even when they know it’s on target.

I sometimes tell complete strangers when I spot typos in their LinkedIn profiles. I write something like, “I noticed a tiny typo in your LinkedIn profile. Your title is listed as ‘investment consutlant’ with the ‘l’ and the ‘t’ reversed. You might want to fix that.” I hope that they realize I’m contacting them because I want to help.

Another reason to phrase your corrections nicely: We all make mistakes. I know I do. I’ve featured many of my own mistakes on Mistake Monday on the Investment Writing Facebook page, where I challenge readers to identify mistakes in items that I post on Monday mornings.

By the way, if you spot errors in my work, please tell me. I’ll be grateful.

If you’re working in an editorial role

Correct as much as you can, if you’re working in an editorial role. However, you may not be able to insist on the implementation of  all of your corrections. Consider my four questions as you decide how to respond to the writer’s resistance to your changes.

 

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

That vs. which: Which is right?

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Writers often use “which” when they should use “that.” The reverse is also true. It took me a while to learn this myself. This post offers some guidance on your choices.

The “That” rule

“That” is for essential clauses. The sentence doesn’t make sense without the clause.

Take a sentence like the following:

Inflation that rises rapidly may hurt bond prices more than gradual inflation.

Omit “that rises rapidly” and you get “Inflation may hurt bond prices more than gradual inflation.” Does that make sense? No! Thus, “that” is required to reflect the presence of an essential clause.

The “Which” rule

“Which” is for nonessential clauses and requires at least one comma.

Consider the following example:

Inflation was rising rapidly, which was inflicting pain on bond holders.

Delete “which was inflicting pain on bond holders” and you still have a sentence that makes sense: “Inflation was rising rapidly.”

 The British exception

The British have different rules for the use of “which” and “that.” As Shea Ammon states in Bad English: A History of Linguistic Aggravation, they use both for essential clauses. However, they agree with Americans on using “which” for nonessential clauses.

 

For another take on which vs. that, read my post “The Which Trials” according to “Woe is I.” That post also contains links to more resources on which vs. that.

 

Note: The title of post was edited on Feb. 24, 2015, when I learned that “that” and “which” may not be considered pronouns in this context.

Should your investment commentary be different?

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“Should your investment commentary present a distinctive point of view?” That’s the great question posed by a participant in one of my presentations on “How To Write Investment Commentary People Will Read.”

My answer? It depends.

What is the distinctive point of view?

If a distinctive point of view means ideas that hold their own vs. leading investment strategies, that’s easier said than done. Not everyone can be an original thinker.

Another challenge: Competing with top investment strategists may also require access to world-class data to support your contentions. That may be tough if you’re at a small company with limited resources.

On the other hand, ideas aren’t the only way to distinguish yourself. You can stand out with the way you express your ideas, instead of the actual content of your commentary. Perhaps you show some personality or you’re an elegant or humorous writer.

Your audience matters

Investment commentary that displays thought leadership appeals to some audiences more than others.

For example, if you sell your firm’s tactical asset allocation services, readers will care about the originality and accuracy of how you assess markets. In short, thought leadership matters if it is an important part of your appeal as an investment manager.

Some readers won’t care whether your ideas are original or common. This is particularly true of individual investors. I believe they’d rather know that you understand them and their needs. In their case, investment commentary explaining how a recent event or trend affects their portfolio may be more powerful than groundbreaking commentary on the stock market.

What do YOU think?

I’m curious to learn your thoughts on this topic. Please comment.

What Napoleon’s first battle can teach writers

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Imagination is a powerful source of story ideas. This is what a picture of Napoleon Bonaparte’s first battle made me think when I visited the Bonaparte home on the French island of Corsica. And it can help you when you write.

Do you know what is portrayed in “Napoleon’s First Battle”? A snowball fight. It’s unlikely that the artist saw it firsthand, but the image offers a refreshing perspective on Napoleon.

What’s the lesson for you? If you’re targeting a specific audience—for example, pre-retirees in their 50s who work as cardiothoracic surgeons—write about earlier stages of their lives. You don’t have to go back to their childhood. However, showing some understanding of how your ideal prospects reached their current state will help them to trust you.

For example, you could refer to their long training, including residencies and internship, which has shaped some of the pressures in their lives.

Another idea is to write or blog about the challenges your 50-something prospects face in their 30s or 40s. This could help you to build a pipeline of ideal clients.

Have you ever tried imaging your audience at a younger age? How did it help you?

 

Is your free report “complimentary” or “complementary”?

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Offering a free report to folks who sign up for your email list is a great marketing technique. However, you risk making a mistake if you substitute a multisyllabic word for “free.”

Look at the example in the image below, which shows a sticker that appeared on a local newspaper. I feel confident the advertisers wanted to push the benefits of a free class. Too bad that’s not what they offered.
complementary misuse example
“Complementary” doesn’t mean “free.” It addresses the relationship between two or more items. Taking this ad literally, it suggests that if you pay to take a music appreciation class, it will enhance your experience in the other courses, lectures, or seminars offered by the advertiser.

“Complimentary,” meaning “given free or as a favor,” is the word the advertisers needed.

When you offer a report at no cost to your newsletter subscribers, please consider making it “free.” You’ll avoid an embarrassing mistake. Also, the single-syllable “free” is easy for your readers to absorb.

If you must go multisyllabic, please use “complimentary.”

Help your readers by linking to definitions

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Using words that your audience doesn’t understand can cut your readership. That’s why I recommend using plain language or defining terms by writing parenthetically. But what if 95% of your readers prefer terms like “quantitative easing” and “duration,” but you want to accommodate the remaining 5%?

Link to online definitions, but cautiously

Glossaries can help you cater to a small number of less sophisticated readers. You can link from technical terms to their definitions. This works well in online content, such as websites, blogs, and even in PDFs that are read online. In printed documents, you can refer to a glossary at the back of the piece or at an easy-to-type online address. However, be aware that it takes a very motivated reader to click, read the definition, and then return to your document. I’d only use this technique when less sophisticated readers are a small minority.

You can find good definitions online, with glossaries such as Investing in Bonds, the Morningstar Investment Glossary, or the NASDAQ Glossary of Stock Market Terms. You can also do a Google search, typing “Define: Term.”

Don’t blindly accept any definition you find. Read the definition carefully to see if you agree with it.

Create your own glossary

Another approach is to create your own glossary that lives on your website. This may be the only solution if you have concerns about linking to third-party websites. Your compliance professionals may worry about seeming to endorse someone else’s website or being vulnerable to changes that occur in the content after you post your link. Plus, what happens if that page disappears? Broken links disappoint your readers and damage your credibility. Creating your own glossary gives you control over the definition and your readers’ access to it.

Another potential advantage: You can cross-link from your glossary definition to other relevant content. This could increase readers’ engagement with your website.

 

Image courtesy of  arztsamui at FreeDigitalPhotos.net

Updated 7/15/21; 7/24/24

Do your grammar, punctuation, and usage affect your credibility?

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Does the quality of your writing matter? It looks like it does. When I asked “Does a writer’s grammar, punctuation, or usage errors damage that writer’s credibility in your eyes?”, an amazing 100% of respondents said “yes” in response to the survey on my blog and in my newsletter.

Specifically, they gave the following answers to my multiple-choice question.

0%   No, I don’t notice errors
0%   No, I don’t care
26% Yes, but I forgive small mistakes, especially in social media posts
74% Yes, they damage the writer’s credibility

I imagine that my readers are more critical than the general population. Still, these numbers should make all of us, including me, pay closer attention to how we write.

Respondent comments on bad writing

As one respondent commented, “Having your reading disrupted by a misspelled word or badly written sentence is like having air suddenly let out of a balloon. It makes me question the writer as well as the content.” Another reader said, “it reflects poorly on the writer and shows lack of attention to detail.” On a similar note, one person wrote, “There’s always that nagging feeling: if they didn’t care enough to proofread this, where else are they cutting corners? I try to be charitable because I too make mistakes, but it really bugs me.”

In their comments, readers showed some tolerance for mistakes. Here’s one example, “To me, it shows the writer is not detailed enough to review their input before hitting “go” – drives me crazy. That being said, I hit the wrong key often when texting and sometimes miss it before sending, so I have a small tolerance for those sort of errors.”

Believe it or not, despite my weekly “Mistake Monday” feature on the Investment Writing Facebook page, I fall into the 26% of people who tolerate small mistakes, especially in social media.

The worst mistakes?

The second question in my survey asked, “What is the worst mistake that writers make? Why is this mistake bad?”

Popular answers included spelling mistakes, mistakenly using “it’s” as the possessive form of “it,” and failing to proofread.

Here are more answers to my question about the worst mistakes:

“It’s a toss-up between thinking they are texting and using texting acronyms and overloading their writing with technical jargon.”

“Writing with very little thought and planning… poor sequencing of ideas, incomplete sentences, stream of consciousness, no clear call to action. When that’s the output, why bother?”

“Since I read almost no fiction–in my job, I don’t have to because what I see and hear no writer could make up–I confine my comment to non-fiction. Embedding numbers inside paragraphs abuses most readers because it asks them to ‘see’ relationships between and among numbers that can be shown much more easily with charts and graphs.”

“Using too many words. I want to get the point, learn the lesson without reading useless words.”

Dave Spaulding on writing mistakes

I’m not the only person raising these questions in the world of investment management. You can read Dave Spaulding’s “Should GIPS verifiers correct grammar? Spelling?”

When Dave sees mistakes, he recommends changes. In his blog post, he says, “On occasion, I’ve discussed this with our clients, and in every case the client has been very clear that they welcome my comments. Most want their materials to be as correct in all respects as possible.” That’s good news.

 

March 13, 2017 update: The original version of this post linked to my original survey. I updated the post to focus on the survey results, which I’d published in my monthly e-newsletter (click to subscribe).

Break your writer’s block with Robert Benson and Eric Maisel

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What can you do when writer’s block paralyzes you?

Sitting down at your desk and going through the motions of writing is one place to start, according to Robert Benson in Dancing on the Head of a Pen: The Practice of a Writing Life.

Benson suggests that you establish a daily routine of turning on your computer and going back to the most recent stopping point in your work. Paraphrasing an NPR interview with Eric Maisel, he suggests, “If you are a writer, type in the last few bits you wrote.” You can find direct insights from Maisel on YouTube, as in “Understanding Goal-Oriented Creativity.”

I think the idea is to find an easy entry into writing. Once you start, you may build momentum. As Benson also says,

… something… magical may happen to writers if they go to their rooms and take up their tools each day.

Perhaps writing will capture them.

This reminds me of advice I read or heard long ago to stop your daily writing in the middle of a paragraph or thought. That way you’ll have an obvious path for resuming your writing.

What works for you?

What helps you lick writer’s block? For another take on this topic, see “Beating financial writer’s block with author Julia Cameron.”

 

Disclosure: If you click on the Amazon link in this post and then buy something, I will receive a small commission. I only link to books in which I find some value for my blog’s readers.

“Say one thing”: a great reminder for bloggers

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Online readers have even less patience than people reading on paper. This mean bloggers should embrace journalist Donald M. Murray’s advice to “say one thing.”

In Writing to Deadline: The Journalist at WorkWriting to Deadline by Donald Murray, Murray says:

The greatest problem in news writing is the story that lacks focus. The writer tries to say too many things of equal importance. An effective news story has one dominant meaning.

To avoid a lack of focus, Murray tries to identify “the one thing the story must say.”

How do you find that one thing? Murray sets his notes aside and thinks until the answer hits him. It could be something as simple as “more taxes.”

Sometimes Murray’s technique works for me. Other times, I take a more analytical approach. For complex stories, I find mind mapping, a technique I discuss extensively in Financial Blogging: How to Write Powerful Posts That Attract Clients, helpful.

Mind maps give me a bird’s eye view on patterns and themes that I can’t see when I’m too close to the data.

By the way, once you figure out your “one thing,” consider dropping it into your introduction. I wonder if this is what New York Times reporter Floyd Norris did when he opened a column with “Has Japan turned the economic corner?” You can read this sentence in context in his column, “Government stimulus lifts Japan.”

Disclosure: If you click on the Amazon link in this post and then buy something, I will receive a small commission. I only link to books in which I find some value for my blog’s readers.