Medicine

Buffett, Dimon urge end to quarterly profit forecasts

Buffett, Dimon urge end to quarterly profit forecasts

Buffett's Berkshire, along with Jamie Dimon's JPMorgan and Jeff Bezos's Amazon, said in late January that they planned to start a joint venture to improve health care for their workers.

Companies often hold back spending on technology, hiring, and research and development to meet quarterly earnings guidance that may be affected by factors outside the company's control, the business leaders wrote.

Dimon, chairman of the Business Roundtable, noted that the group of CEOs also support companies moving away from the practice and instead, focus on long-term value creation.

"In our experience, quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability", they wrote.

Dimon, is chairman of the Business Roundtable, an association of almost 200 CEOs that is also backing the push to eliminate so-called short-termism. Without company guidance, analysts' estimates are likely to vary more, making share prices more volatile at the same time that estimates become less valuable to investors and, horror, not worth paying for.

More news: Yahoo Messenger Gets A July 17 Execution Date

When the actual earnings results are officially reported, so-called beats - or profit results that top expectations - are often rewarded with a rise in the stock price. "Short-term-oriented capital markets have discouraged companies with a longer-term view from going public at all, depriving the economy of innovation and opportunity", they said.

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.

In a CNBC "Squawk Box" program interview and an opinion piece published in the Wall Street Journal, Buffett and Dimon said quarterly forecasts, known on Wall Street as "guidance", take up management's time and lead to decisions that don't benefit companies or their shareholders.

Buffett and Dimon said they were not opposed to the practice of quarterly and annual reporting that ensures transparency.


  • Thiem for a change? Or same old Nadal script?

    Thiem for a change? Or same old Nadal script?

    Thiem sent Cecchinato scurrying around the court before breaking decisively for a 6-5 lead with a lovely forehand victor . I have to play my best. "Being in a final here is something I should rejoice about and be happy about", he said.
    U.S.  is a 'piggybank everyone is robbing', says Trump at G7

    U.S. is a 'piggybank everyone is robbing', says Trump at G7

    The G7, or "Group of Seven", is now made up of the United States, the United Kingdom, Canada, France, Italy, Germany, and Japan. Prime Minister Justin Trudeau did not wait for the US president to kick off the meeting in La Malbaie, Quebec.
    After days of insults, Trump and Trudeau pal around at G7

    After days of insults, Trump and Trudeau pal around at G7

    That move was met with criticism at home, including from Republicans , and announcements of retaliatory tariffs from USA allies. The Prime Minister's Office issued a response shortly after, stating that Trudeau has been consistent with Trump.
  • Jennifer Lawrence Steps Out With Rumored New Boyfriend, Cooke Maroney

    Jennifer Lawrence Steps Out With Rumored New Boyfriend, Cooke Maroney

    The 33-year-old works as a director at New York's Gladstone Gallery , which reps artists such as Lena Dunham's dad Carroll . Lawrence made it clear, in a February interview with shock jock Howard Stern, that she was on the lookout for a new man.
    Mitch McConnell cancels bulk of Senate's August recess

    Mitch McConnell cancels bulk of Senate's August recess

    All eyes are now on Robert Wilkie, who's been acting secretary ever since former VA Secretary David Shulkin was sacked in March. Corker admitted that even with some bipartisan support, not every senator in his party would welcome this type of a bill.
    Trump signals support for legislation easing US ban on marijuana

    Trump signals support for legislation easing US ban on marijuana

    In response to that decision, Garnder threatened to hold up future nominations for positions in the Department of Justice. The legislation would allow states to pursue liberalized marijuana policies as they see fit, they said .
  • More Google Pixel 3 XL images leak, confirm all-glass back

    More Google Pixel 3 XL images leak, confirm all-glass back

    A separate report on the site reveals that Pixel 3 XL's code-name is "Crosshatch", which is the name of a type of fish. Google Pixel 3 XL will be powered by the Snapdragon 845 processor and there will be a 4GB RAM+128GB storage model.

    "Halt This Practice": US Gets Earful From UN On Immigration

    It has also said that some adults falsely claim to be the parents of accompanying children, a genuine problem, and that it has to sort out their claims.
    Duterte criticised for kissing woman

    Duterte criticised for kissing woman

    PHILIPPINE President Rodrigo Duterte has drawn criticism for kissing an overseas Filipina worker on live television. Duterte first asked the lady if she was single and found out she was married.
  • U.S.  to Lift Sanctions Against ZTE (After it Pays $1.4B)

    U.S. to Lift Sanctions Against ZTE (After it Pays $1.4B)

    The latest sanction in April was because ZTE lied about disciplining some executives responsible for the original violations. That's because it violated an agreement with the U.S. after it got caught evading sanctions against North Korea and Iran.
    New Pistons coach: Isiah Thomas Bill Laimbeer now in mix?

    New Pistons coach: Isiah Thomas Bill Laimbeer now in mix?

    The Wolverines are projected as a preseason top-25 team in 2018-19, Beilein's 12th season at the helm. Beilein is under contract with MI through the 2020-21 season at $3.37 million annually.
    Del Potro sets up French Open semifinal match against Nadal

    Del Potro sets up French Open semifinal match against Nadal

    The win for Halep also means she will not lose hold of her world number one ranking, no matter what happens in the next game. The loss of the second set clearly had a negative effect of Stephens, who began to show signs of frustration on court.