Buffett And Dimon: No More Quarterly Profit Forecasts

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

Dimon, in a joint interview with Buffett to CNBC, claimed that executives are often under pressure to make quarterly predictions, but the practice "can often put a company in a position where management from the CEO down feels obligated to deliver earnings and therefore may do things that they wouldn't otherwise have done", report said.

Buffett, who is chairman of Berkshire Hathaway Inc (BRKa.N), and Dimon wrote in a Wall Street Journal column on Thursday that the pressure to meet short-term estimates has contributed to a fall in the number of USA public companies.

Dimon, who appeared in a joint CNBC interview with Berkshire Hathaway chief executive and billionaire business magnate Warren Buffett, has in the past been very sceptical of the crypto, labelling it a "fraud" in September a year ago. "Public guidance was the fix for many companies".

Two of Wall Street's harshest bitcoin critics are once again warning investors of the dangers of bitcoin. Missing "the number" can often result in big, short-term stock moves.

Buffett defended his argument in an interview with CNBC on Thursday morning.

The amusing and heartbreaking trailer drops for HBO's Robin Williams documentary
Martin then acknowledges that Williams, on stage, was "a master", but "off stage, it felt like he was holding himself together". The trailer for Robin Williams: Come Inside My Mind is out and it will leave any Robin Williams fan emotional.

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

"Reducing or even eliminating quarterly earnings guidance won't, by itself, eliminate all short-term performance pressures that US public companies now face, but it would be a step in the right direction", Dimon and Buffett wrote.

"I have seen managements. get tempted by the predictions that they've made", Buffett said.

But McKinsey & Co. found in a 2006 study that quarterly guidance didn't affect valuation multiples and didn't reduce share price volatility. "We are encouraging all public companies to consider moving away from providing quarterly earnings-per-share guidance".

Quarterly results are influenced by the weather, commodity prices and other factors beyond the control of CEOs, Dimon said. Public companies owe it to all of them to get this right, they said. But, he added, taking a stand on the issue is "a first step".

Related News:

  • Celebrity Chef, CNN Host Anthony Bourdain Found Dead in France Hotel

    Celebrity Chef, CNN Host Anthony Bourdain Found Dead in France Hotel

    Bourdain leaves behind a teenage daughter Ariane , from his relationship with his ex-wife Ottavia Busia . I just don't think we can afford her. "I pray he is at peace from the bottom of my heart", he added.

    The SEC and Cryptocurrency Exchange Coinbase Eye Crypto Securities — Blurred Lines

    As a broker-dealer, Coinbase will officially be regulated by the SEC as well as FINRA . Some of Coinbase's competitors, like Binance, trade more than 200 different coins.
    Was there Life on Mars? NASA's Recent Discovery Opens up Possibilities

    Was there Life on Mars? NASA's Recent Discovery Opens up Possibilities

    Before, researchers couldn't understand why the little bit of methane detected in the Martian atmosphere varied. The second evidence comes from Mars' atmosphere and relates to the search for current life on the red planet.
  • Baby Kamiyah kidnapper sentenced to 18 years in Florida prison

    Baby Kamiyah kidnapper sentenced to 18 years in Florida prison

    Shanara Mobley had no comment when she left the court room, an Action News Jax reporter tweeted. "Let's go.' I just couldn't". In the 1½ years that Aiken has known where his daughter ended up, he has worked hard to build a relationship with her.
    China Holds Shanghai Cooperation Organization Meeting Opposite G7 Summit

    China Holds Shanghai Cooperation Organization Meeting Opposite G7 Summit

    Xi was hosting leaders of the Shanghai Cooperation Organization in the coastal city of Qingdao over the weekend. SCO members include China , Russia, India , Pakistan , Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.
    Luke Heimlich not picked up in Major League Baseball  draft

    Luke Heimlich not picked up in Major League Baseball draft

    The specter of criticism spooked a number of executives from putting Heimlich on their draft boards in the first place. He told Sports Illustrated he pleaded guilty because he and his parents decided it would be best for the family.
  • Sea of Solitude is coming in early 2019

    Sea of Solitude is coming in early 2019

    EA also showed off Coldwood Interactive's Unravel Two , which is the sequel to the delightful 2016 platformer Unravel. In " Sea of Solitude ", Kay becomes one of these monsters, and must find her way back to her normal self.

    'Sons Of Anarchy' Star Alan O'Neill Found Dead At 47

    According to TMZ , O'Neill, who starred as Hugh on the FX series from 2013 to 2014, had heart problems and was a heavy smoker. Jenny Dixon joined Fair City after O'Neill left the soap in 2012, but worked with him on the short film Invisible .
    Trump won’t invite Warriors (or Cavaliers) to the White House

    Trump won’t invite Warriors (or Cavaliers) to the White House

    In remarks prior to Game 4 on Friday night, Warriors coach Steve Kerr said, "Man, it's Game 4 of the Finals". It's the fourth consecutive year that the two teams have met in the finals. "So it's just the way it is".
  • After days of insults, Trump and Trudeau pal around at G7

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

    State news agencies quoted Kremlin spokesman Dmitry Peskov as saying, "We are putting the emphasis on other formats". Trump called for Russia's reinstatement to the group before he arrived at the annual summit taking place in Quebec.
    Dub Dynasty: Warriors sweep Cavs for second straight title

    Dub Dynasty: Warriors sweep Cavs for second straight title

    James played in every game for Cleveland - 82 in the regular season (something he'd never done before) and 22 in the playoffs. This summer, LeBron James holds a player option he could use to leave Cleveland - and many expect him to .
    Chinese hackers stole secret plans for new US Navy weapon

    Chinese hackers stole secret plans for new US Navy weapon

    While the information was stored on the contractor's unclassified network, it was described as "highly sensitive" in the Post report.


Most liked

Trump signals willingness to back bill easing pot regulation
The STATES Act would give states the right to self-determine cannabis laws without the looming threat of federal interference. The bill also would legalize industrial hemp nationwide.

Body found after gator pulls woman into south Florida lake
Authorities warn that gators are "opportunistic feeders", meaning that they will generally snap onto anything that gets near them. Authorities closed the park Friday. "So you're not shocked this happened, not at all, but heartbreaking", Ramasaran said.

Dillian Whyte set for heavyweight clash with Joseph Parker in July
The Bulgarian said last week he was "95 percent sure" that the fight would take place in Sofia in August. Parker dropped a unanimous decision and relinquished his WBO heavyweight title.

Vettel ends Ferrari's 17-year wait for Canada pole
So, great to carry momentum we've had in qualifying so far this year, even though the last race was a little bit less so. Red Bull's Max Verstappen pipped Lewis Hamilton's Mercedes in first practice at the Canadian Grand Prix .

Mohamed Salah Rejects Sergio Ramos Claims, Laughs at them
Ramos said after the injury that Salah could have continued the game if he had had an injection. He's not hard, I think he's a good coach, a good man.

Trump calls for return of Russian Federation to the G7 ‘table’
Merkel said on Saturday there must first be progress on a Ukraine peace plan before there is any talk about readmitting Moscow. She said: "Where we disagree with our allies on something it is right that we say so, and air the issue openly and frankly".

Warriors vs. Cavs: breaking down the NBA championship finals - Explica®
Paul and James are longtime friends, and the prospect of the two teaming up to contend for a championship has always been rumored. Cleveland held a 19-4 advantage on the offensive glass, getting seven offensive rebounds in the first half to the Warriors' none.

Queen cuts a lonely figure without Prince Philip at Trooping the Colour
Today's ceremony was also the first royal outing for Meghan Markle , Duchess of Sussex , since she returned from her honeymoon. Meghan's premiere week continues on Jun. 14, when she and the Queen will travel to Cheshire for a series of royal events.

Trump at G-7 summit: What you need to know
Last week, however, steel and aluminum tariffs on imports from Mexico , Canada, and the European Union finally went into effect. Trump will then head to Singapore ahead of his highly-anticipated meeting with North Korean leader Kim Jong Un on Tuesday.

Nyantakyi apologises to Akufo-Addo, resigns
Before the last World Cup in Brazil in 2014, Nyantakyi was accused of signing a $170,000-deal for Ghana to play in a friendly organised by match fixers.

US Democrats hope for 'blue wave' in primaries
In southern New Jersey , where the retirement of a longtime Republican incumbent gave Democrats an opening, state Sen. Braley's First Congressional District, which he had held since 2006 fell to a very conservative Republican, Rod Blum.

Kate Spade's Sales Have Increased By 600% Following Her Death
The new CDC study itself found that 54 percent of suicide victims in 2015 had no known mental health conditions. The ADAMHS Board operates the county's 24/7 suicide prevention crisis hotline at 216-623-6888.

Google Pixel 3 line may feature wireless charging
Around front, we can see that Google unsurprisingly copied Apple's iPhone X design with a big notch at the top of the display. This is easily the most exciting Pixel 3 leak we've seen to date, but again, it's unsubstantiated.

Kevin Durant Stares Down Hecklers Who Said His Alma Mater Was 'Butt'
LeBron was asked if he thought Durant was going to be a problem when he first went up against him in the Finals back in 2012. According to ESPN, one of Durant's options now would be to sign a four-year, max contract worth around $158 million.

Kane signs new six-year Tottenham contract
And the partnership will now continue, despite previous calls for Kane to leave Spurs and look to forge a path elsewhere. England captain Harry Kane is excited to be part of Tottenham's future after signing a new six-year contract.