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    Shareholder Letter Revelations: Can You Trust the Leadership?

    by Laura J. Rittenhouse

    When journalists learn that I search for meaning in CEO shareholder letters, they laugh, “They’re not worth the paper they’re written on.” Or worse, they call these letters a bunch of lies.

    When I tell individual investors how important it is to read shareholder letters, they groan. Many can’t even understand what the CEO is trying to say.

    This fact alone, however, provides an important insight into deciding how much to trust the company leadership. If you can’t understand the letter, how can you ever understand, or even trust, the financial statements?

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