Bitcoin sceptic Jamie Dimon tells buyers to 'beware'

Jamie Dimon, Warren Buffett urge CEOs to end quarterly earnings forecasts

Jamie Dimon, Warren Buffett urge CEOs to end quarterly earnings forecasts

Warren Buffett, Jeff Bezos and Jamie Dimon have picked a leader for their health care venture.

Dimon and Buffett noted that the pressure to meet short-term profit forecasts has contributed to a fall in the number of public companies in the U.S.in the past two decades, "depriving the economy of innovation and opportunity".

Dimon, who also leads the Business Roundtable group, and Buffett co-wrote an article about why they think quarterly profit forecasts are hurting the economy.

They told companies to move away from providing quarterly guidance.

The two men noted that companies often hesitate to spend on technology, hiring, and research and development in order to meet quarterly earnings guidance that can be impacted by seasonal factors beyond their control, such as political events and even weather. Around that time, big companies like Coca Cola, UPS and AT&T said they would no longer give quarterly guidance.

Dimon said that Schultz "would be a great chief executive or governor or senator or mayor or whatever he wants to do", but added that he's not sure that managing a business makes a person suitable for politics.

33-year-old sister of Dutch queen dies in Argentina
Between 2009 and 2011 she worked at the United Nations headquarters of Panama but returned to Argentina in 2012 after a breakup. Zorreguieta was also godmother to the couple's third child, her 11-year-old niece Princess Ariane of the Netherlands .

A less compelling argument is that corporate EPS guidance more or less anchors analysts' EPS estimates.

Buffett and Dimon also blamed the practice for contributing to the decline in the number of public companies in the USA over the past 20 years. "Such short-termism is unhealthy for America's public companies and financial markets - which are critical to economic growth and financial prosperity", Business Roundtable said in a statement.

Although we've seen no immediate opposition to the proposed elimination of quarterly EPS guidance, it's not hard to imagine what at least one argument might be: just because companies don't publish the number does not mean they won't calculate such a number. They offered "common-sense" recommendations for public companies to improve governance and relations with shareholders.

The report found fewer than a third of S&P 500 companies still issued quarterly guidance in 2016, down from 36 percent in 2010.

Quarterly earnings guidance works like this.

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