learningandfinance.com


Business

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

Share
Bitcoin Surprise Surprise! Jamie Dimon and Warren Buffet Still Don’t like Bitcoin Rick D

JPMorgan CEO Jamie Dimon, who has made negative comments about the cryptocurrency in the past, said during an interview Thursday with CNBC that while he doesn't want to be a "bitcoin spokesperson", buyers should "beware".

As a result, corporations "frequently hold back on technology spending, hiring, and research and development" that would improve businesses' future growth, Buffett and Dimon say.

J.P. Morgan chief executive Jamie Dimon on Thursday denied that he plans on running for president.

Buffett and Dimon helped produce a set of voluntary governance guidelines two years ago, which was signed by more than one dozen executives.

Several big companies like AT&T, Coca Cola, Facebook and UPS have stopped issuing quarterly earnings guidance.

China’s ZTE will live, thanks to a deal with the U.S. government
The announcement boosted shares in United States component makers including Acacia Communications, Oclaro and Lumentum Holdings. In addition, ZTE will make changes to management, and put a further $400 million in escrow to cover possible future fines.

Dontnod Reveals Twin Mirror, a Psychological Thriller Coming in 2019
Sam needs to recall his memories and search for clues to discover the truth in a mysterious investigation. "A broken heart. Since the official announcement occured no gameplay footage or screenshots have been revealed of Life Is Strange 2.

Gonorrhea And Syphilis Rates Are Going Up By 20 Percent
There has also been a sharp spike in syphilis across the board, with 5,955 cases treated in 2016, and 7,137 accounted for in 2017. The situation needs to improve quickly and learnings from the recent drop in new HIV diagnoses would be a good place to start.

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". "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.

Neither Buffett and Dimon nor the Business Roundtable is arguing against quarterly or annual reports from public companies. 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. Bloomberg LP, the parent of Bloomberg News, is a member of the Boston-based non-profit group.

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.

"When companies get where they're sort of living by so-called making the numbers, they do a lot of things that really are counter to the long-term interests of the business", he said.

Share