Investor relations bits by Ian Westbrook
Ian Westbrook’s ideas on contemporary IR are among the most insightful that I’ve seen.
The quotes below are taken from his 2014 book Strategic Financial and Investor Communication: The Stock Price Story and from his blog http://westbrookfin.com.au/blog/.
The real objective of investor relations is…
A company can’t always be a top performer, but it can seek to always be a top explainer of its business and the context of its business, conveying management quality in the process.
Don’t let the numbers speak for themselves...
A belief that numbers speak for themselves misses the potential that comes from communicating about where value really lies. A lot of this value is not only outside balance sheets and income statements but also beyond a company-centric explanation of these factors. Value is in a company’s story, containing an industry context, explanation of competitive advantage and a link to the investment proposition, which in turn can sway how numbers are interpreted.
While facts and numbers are important, it is the story around them that ultimately influences investment decision making.
Stakeholders don’t just want facts and numbers, they want a surrounding narrative that explains performance in the context of strategy and industry structure.
Earnings are not a topic in isolation but part of a story that connects with all the other aspects of a business to which the market is actually attributing large amounts of value.
Headlines on company announcements need to reveal the NEWS!
When companies ignore the opportunities of linking information releases to news values, with headlines capturing their essence, they miss a big chance to attract readers and potential investors.
- Bryan Bradley