Reader question: Writing resources for equity research analysts?

“What are some good resources to improve my investment writing skills with an emphasis on equity research writing?” This question recently arrived in my email in-box.

Here are my suggestions:

I offer customized writing workshops for corporate clients in investment and wealth management. I’m not a research analyst. However, I’m good at analyzing client writing samples and then using them as the basis for training.

Equity analysts, can you suggest any additional resources?

I’m always interested in readers’ ideas.

 

July 24, 2013 update: Warren Miller, CFA, CPA of Beckmill Research, LLC has some more suggestions for you, starting with “Read what good analysts write, and then copy it by typing it into a Word document.” As you re-type that research, study what makes the reports good. That means looking at how the analyst tells the company’s story and at details such as sentence length, transitions, and measures of reading difficulty, such as the Fog Index. As Miller says, “Good writers read great writers.”

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. – See more at: http://investmentwriting.com/blog/?s=disclosure#sthash.NlvDZLSB.dpuf

May 30, June 3, and June 27, 2014: I updated this with additional links.

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.

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. – See more at: http://investmentwriting.com/blog/?s=disclosure#sthash.NlvDZLSB.dpuf

 

 

 

Guest post: “The ABCs of Creative Capital Rights”

Creative rights are complicated, but every writer and marketer needs to understand them. I’m happy that my friend, writer Wendy Cook, is letting me share her blog post on this topic.

The ABCs of Creative Capital Rights

By Wendy J. Cook

First, let me make myself perfectly clear: I’m not a lawyer. Before you act on any of my personal ruminations here, do please consult an attorney. (1)

That said, as a creator of creative capital, I think I can offer some good ideas from the front lines on frequently asked questions about its ownership, such as:

(1) How can I safely “borrow” from other people’s work?

(2) Should I protect my own work?

(3) What if I’ve hired a freelance writer?

Learning the Alphabet

Let’s begin with a brief tour of the creative lingo.

  • Creative capital is anything you’ve invented (created), that is of some relatively demonstrable value to you and/or others (capital) — whether it’s written content, artwork, a product offering or a process.
  • Copyrights protect your words.
  • Moral rights protect your artwork.
  • Trademarks protect your corporate identities, including logos, taglines and product names.
  • Patents protect your products and processes.(2)

Lawyers the world over are likely cringing at my broad strokes here, akin to using a blow torch to light a candle, but it’s how I think about it all, anyway. Now that we’re in the ballpark, let’s touch on the bases.

Borrowing From Others

No matter how convoluted, laws exist to guide us on what we communally consider fair or foul. So “Do Unto Others” remains a great starting point for drawing on other people’s creative capital. Remember your grade school teacher’s response when asked if you could have a hall pass to escape? “Of course you can,” he or she would smirk. “But may you?”

Same thing with copyrights. Just because you can reproduce an article or a picture does not mean you’re allowed to. Whenever reproducing somebody else’s creative capital (beyond brief, properly cited quotes as described below), it’s your responsibility to proactively seek copyright or moral right permissions from the author or artist — which may justifiably involve paying them for it.

An exception to this rule of thumb is if: (1) you briefly quote and properly cite somebody’s content, and (2) you’re adding substantial value of your own, versus simply repackaging somebody else’s book report.

Protecting What’s Yours

In a perfect world, everybody would respect each other’s creative fields, and you’d need never worry about someone unfairly harvesting the fruit of your labors.

Last I checked, it’s not a perfect world. If you’ve got creative capital that you want to protect against theft, here are some ideas.

Copyrights Have You Covered

Copyrights (and I believe moral rights too) are subject to an interesting characteristic. Authors automatically hold copyright to their work … at least until they choose to sell or grant it elsewhere. That’s whether or not you formally register it with the U.S. Copyright Office or display a notice on it, like: “Copyright © 2011, John Doe.”

So why bother with notices or registration? As I understand it, without these, your legal recourse is limited. For example, should someone violate your copyright when notice and/or registration are lacking, you may still be able to achieve a “cease and desist” order to prevent further offense, but you might have trouble collecting on damages done.

Thus, since it’s cheap and easy to do, go ahead and display a copyright notice on most of your work. Formal registration becomes appropriate if we’re talking book-length or for work that you highly value, but it doesn’t seem worth registering every scintillating word you share, unless you’ve got a whole lot of spare time and money you’re looking to get rid of. (If you do, I’ve got some better ideas; call me.)

Trademarks Are a Different Breed

Trademarks have very different rules from copyrights. My understanding is that you must not only formally establish registered trademarks for your logos, taglines and similar corporate identities, but you must also carefully maintain your ownership, lest it be lost through attrition. Protecting your trademarks requires at least these two important steps:

  1. Including the “®” symbol in almost all appearances of your trademarked content
  2. Regularly monitoring for and aggressively acting on any violations that occur

If you can’t demonstrate that you’ve been diligent on both of these steps, my understanding is that you can lose the ability to protect your trademark — even if you’ve gone through the bother and expense of establishing it to begin with. Ugh.

Bottom line, if it would be a serious blow to your business to lose the rights to your company name and/or particular product names, taglines or similar marks, it may be worth establishing and maintaining trademarks to protect them.

Freelance Writers and Designers

What if you’re working with a service provider to assist you with your corporate communications? As you might expect, the legal transfer of rights can be handled — or mishandled — in all sorts of ways. There are surely enough variations to provide an army of intellectual property lawyers with job security well into the next century. Since there is no universal standard that I’m aware of, whenever you work with creative alliances, it behooves you to ask how they personally handle it and to ensure that their processes work for you.

Personally, I’m fond of the KISS strategy. My practical goal is to transfer the copyrights and moral rights for client-specific projects to the client … once I get paid for doing the work. Brilliant, huh? I contracted a lawyer to help me form a legal agreement that describes this simple goal in copious legal language. Just as good fences make good neighbors, I believe that good formal agreements make for good working relationships. So far, I’m pleased to report my beliefs on that count have held true.

Even though this is one of my longer blog postings, clearly there’s plenty of remaining learning opportunities on the subject of protecting your creative capital and respecting that of others. So I’ll part with a couple of resources I’ve found handy in my own schooling:

Wendy J. Cook Communications offers writing, editing and presentation services expressly for the fee-only, passive/DFA, Registered Investment Advisor community. By focusing on this niche, Wendy helps these firms effectively communicate with their clients, prospects, media and the general public in print, social media/Web and e-newsletter forums.


(1) Lawyers who specialize in these sorts of things are often referred to as intellectual property (IP) attorneys.

(2) Patents are not addressed in this blog but seemed worth a brief mention here.

How to get a white paper written on a budget

White papers. They’re a great marketing tool for investment and wealth managers. But what if you’re too busy to write and you lack the money to hire someone to craft your white paper from start to finish?

Three strategies suggested by Steve Slaunwhite in his chapter on “Create Your Amazing Buzz Piece” in The Wealthy Freelancer can help.

1.  “Write a very rough draft, no matter how awful.” Then, hire someone to shape up your draft.

2.  Record yourself speaking out loud about your white paper topic. Then hire someone to transcribe your thoughts, which means the person types up word-by-word what you spoke. Another option, which I’ve mentioned in “Investment manager’s secret of regular blogging,” is to use transcription software. Once you have your words in a file, you can edit them yourself or hire an editor.

3.  “Get a freelance writer to interview you.” I’m guessing that Slaunwhite is suggesting that you use the writer’s probing questions to tighten your white paper’s focus before you get the interview transcribed.

Those three approaches get your ideas out of your head and into writing. This is the hardest part for some financial advisors.

Have you tried these techniques? How have they worked for you?

Guest bloggers: 2010 in review

I’m thankful for the knowledgeable and talented professionals who have contributed guest posts to my blog this year.

Here’s a list of guest posts sorted by topic, including client communications, marketing, social media, and writing.

Client communications

Five Tips for Delivering Bad News to Clients by Kathleen Burns Kingsbury
Talking to clients about social investing by Annie Logue

Marketing

Adding Video into the Communications Mix by Samantha Allen
The Lost Art of the Thank You Card by Suzanne Muusers
My Six Best Marketing Tips for Independent Advisors by Steve Lyons
What’s a tomato got to do with getting your fund discovered? by Dan Sondhelm
Would you like to know how financial advisors are choosing products and making investment decisions in this market? by Lisa Cohen

Social media

Be Compliant When Using LinkedIn Messages by Bill Winterberg
Financial Advisors and Twitter by Roger Wohlner
Generate Quality, Low Cost Leads with Facebook Ads by Kristin Harad
How Seeking Alpha Can Build Your Professional Reputation by Geoff Considine
Investment analysts and social media by Pat Allen

Writing

Correct Grammar Errors in Your Writing Quickly and Easily by Linda Aragoni
Making Research Readable by Joe Polidoro

Forget your spell checker!

You can’t rely on automated spell checkers. They won’t catch all of your typos.

I remember a beautiful institutional investment pitch book shared by a senior portfolio manager. I’ll call him George Miller. The front cover billed him as “George Miller, Portfolio Manger.”

Yes, that’s “manger” not “manager.”

You can use the proofreading methods in “Six ways to stop sending emails with errors” to complement your spell checker.

The letter reader who’s your biggest nightmare

If you’re a sloppy letter writer, then my friend’s old employer is your biggest nightmare. But clean up your writing, and you can win over even this tough customer.

The impatient reader

“How do you go through your mail so quickly?” she asked after watching him flip through letters one after another without pausing.

His reply? “If it’s not in the first sentence, I don’t read it.” People who wrote flowery introductions to their letters had no hope of communicating their messages to this impatient reader.

Your solution

You can reach impatient readers by getting to your point in your first sentence. Tell your readers what you want – and why it should matter to them. For example, “Here’s a review of our recent meeting with a checklist of the actions you must take, so I can implement your plan.” Save the niceties for the end of your letter.

Some financial advisors think it’s rude to write a letter that doesn’t “make nice” for the entire paragraph. Indeed, some of your readers may prefer a leisurely, chatty introduction.

However, a letter that immediately gets to the point is kinder to your readers. It relieves them of the burden of searching through your letter to figure out what you want. You’ll benefit, too. More readers will do what you want when you’re clear up front.

Take a second look at your most recent letter. Is it direct enough?

Should you go bold?

Bold type, which is thicker than regular type, can make it easier for readers to grasp your meaning. This happens only if you bold wisely. Go overboard with bold, and you may lose readers.

When to bold

Here are three ways I’d use bold in a blog post:

1.  Bold your headings or the first part of your numbered lists. I’m a big fan of headings as visual indicators of your main points as well as your shifts from one point to another. This goes for bolding new points on your list, but only when the bolded text is followed by plain text. A whole block of bold text is hard to read.

2.  Bold the key sentence in one or more paragraphs. Michael Katz of Blue Penguin does this well in his newsletter.

3.  Use bold for one key sentence. It could be the eye-catching content that draws readers to your blog post. Or the “call to action” that invites your readers to contact you.

Bold vs. heading format

Your choice of how to highlight your text may affect how well it is picked up by online search engines.

Some folks have told me that any bolded words are given more weight by search engines. On the other hand, Beth Graddon-Hodgson of WriteSourcing told me this only applies to text that is emphasized by a heading tag, so the text is treated as a title. However, this “subject is highly debated,” said Graddon-Hodgson. “Some people believe that ANY changes to text make a difference with SEO since they incorporate different coding.” Check with your SEO expert for the latest opinions on this debate.

Used wisely, bold can boost the impact of your writing. Give it a try!

WikiLeaks writing tip

You can’t avoid the media’s coverage of WikiLeaks. An article in today’s New York Times focused on the high quality of the writing in the cables. Naturally, I was intrigued.

“The trick is to catch the reader’s attention,” advises Ambassador Richard Hoagland in his “Ambassador’s Cable Drafting Tips,” according to “Clinton Squeezes WikiLemons, Trying to Make Diplomatic Lemonade.” That’s a great idea. I wish more folks would think of the reader when they write.

Hoagland tells writers to get to the point in their subject lines. “The first three to five words are all they will see in their electronic queues.” He’s right. Remember this the next time you write an email.

Poll: Is the SEC’s plain language requirement for Form ADV Part 2 a good idea?

SEC-registered advisors must rewrite Part 2 of their Form ADV using plain language. The requirement takes effect in 2011.

You won’t be surprised to learn that I favor plain language, but I’m curious to know what you think of the new requirement.

Please answer the poll in the right-hand column of my blog, asking  “What do you think of the plain language requirement for Form ADV Part 2?”

  • Bad idea
  • Okay, but will cost too much time and money
  • Good idea, but I’m not sure if it’ll be implemented effectively
  • Great idea, I’m looking forward to it
  • None of the above (please leave a comment)

By the way, the SEC’s plain English handbook is a great resource for your Form ADV rewrite, as Deborah Bosley and Libby Dubick point out in “Lemonade from legislative lemons: New ‘plain language’ rules for Form ADV give advisors a chance to stand out.” Investment News (Oct. 4, 2010, registration required).

Reader challenge: What’s the writing lesson from Physicians Mutual?

You’re getting smarter about writing investment and financial communications, so I’m giving you a challenge: watch this video and then tell me what lesson it teaches writers.

I look forward to hearing from you!