Ever read an investment report and thought…
“What does this even mean?” ¯\_( ͠❛ ͜ʖ͠❛ )_/¯
You’re not alone.
According to Standard & Poor’s Global Financial Literacy Survey, financial illiteracy is widespread
Many struggle with financial statements and market analyses. More on this here How to explain financial statements to anyone
The reason?
The jargon and complexity stop them dead in their tracks.
If your clients don’t understand your reports—
❌ They won’t trust your expertise.
❌ They won’t take action.
❌ They won’t stay.
As a financial analyst, you be the judge.
Which one is clearer?
👉 Option A:
“Company XYZ shows strong growth potential with a projected 20% increase in revenue for the next fiscal year.”
👉 Option B:
“Company XYZ expects to earn 20% more money next year.”
✅ Simple.
✅ Direct.
✅ Easy to understand.
Why does this matter?
In business, clarity wins.
Whether you’re in a meeting or making a presentation…Check out my indepth guide on making killer business presentations
If people are unable to follow what you’re saying, they won’t act upon it.
The worst part is the person who doesn’t understand will not say so.
For all audiences, it is preferable to use simple, everyday language.
• Examples:
• Instead of “CAGR,”
↳ Say, “The tech industry is growing by 10% every year.”
• Instead of “net Income: $100M,”
↳ Say, “The company made a $100M profit last year.”
• Instead of P/E ratio is 15x,
↳ Say, “Investors pay $15 for every $1 the company earns a bit below the industry average of $18.”
🠮 The goal here is to make the information lucid as possible
🠮 The best communicators aren’t the ones who use complex language
🠮 They’re the ones who make things easier to understand.
👉 Who are some of your favorite business communicators?
Let me know in the comments. 👇
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