Warren Buffett, Jamie Dimon: Quarterly profit forecasts hurt economy

Nora Nguyen
June 10, 2018

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".

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.

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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. "Character, culture, capability, heart, mind, the whole thing".

In the latest appeal, they said companies often hesitate to spend on technology, hiring, and research and development to meet quarterly earnings forecasts that can be affected by seasonal factors beyond their control. "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. "Let's not forget how we got here: Reg FD was meant to end selective disclosure, the private guidance on future results", Santoli said.

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Buffett has never provided profit forecasts and doesn't even have an investor relations department at his Berkshire Hathaway conglomerate. "We're hoping a bunch of companies drop it right away". One of the principles outlined in that report said companies shouldn't feel obligated to give quarterly guidance, which for years many have blamed for making executives obsessed with short-term results.

Buffett and Dimon said they are not opposed to the current practice of quarterly and annual reporting that ensures transparency. Buffett and Dimon said Thursday that a CEO has been hired to lead that effort, and the companies expect to announce that choice within the next couple weeks.

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We love everything about the people who come and watch us and support us, whether it's in training camp or in the stadium. Staying in the Locker Room for the playing of our National Anthem is as disrespectful to our country as kneeling.

Berkshire Hathaway is also working with JP Morgan and Amazon to find ways to reduce health care costs for the three companies.

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