Buffett Says Health Venture CEO Pick to Be Disclosed in Weeks

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

But Buffett says the practice of CEOs providing a heads-up on how earnings-per-share results are shaping up often causes them to make poor decisions to ensure that the company beats or meets the results they've communicated to Wall Street.

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.

Buffett and Dimon announced they are partnering with Business Roundtable, a group of roughly 200 CEOs of major USA companies, to call on companies to consider eliminating quarterly guidance.

"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.

They told companies to move away from providing quarterly guidance.

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.

Berkshire Hathaway is one of those firms that does not follow the practice as its leader Warren Buffett believes it sends a "wrong message" and tempt executives to manipulate numbers, according to report. The two business gurus said quarterly financial guidance encourages short-term thinking that stifles growth and limits innovation in the economy.

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". Public companies owe it to all of them to get this right, they said. Around that time, big companies like Coca Cola, UPS and AT&T said they would no longer give quarterly guidance.

But McKinsey & Co. found in a 2006 study that quarterly guidance didn't affect valuation multiples and didn't reduce share price volatility. Last month, he said the goal is to challenge the entire healthcare industry, not individual segments.

Related News:

  • Facebook made some private posts public for as many as 14M

    Facebook made some private posts public for as many as 14M

    These featured items are publicly visible, but Facebook inadvertently extended that setting to all new posts from those users. Facebook CEO Mark Zuckerberg was questioned for two days on Capitol Hill in April about the importance of user security.
    Apple ARKit 2 Will Introduce Shared AR Experiences Across Separate Devices

    Apple ARKit 2 Will Introduce Shared AR Experiences Across Separate Devices

    The macOS Mojave release date is scheduled for this fall, most likely in September or October, and as usual will be a free update. Unlike Windows, it seems users of Apple software will see the dark theme more widespread than Windows apps are.
    US Tariffs

    US Tariffs "Unjustified", UK PM Theresa May Tells Donald Trump

    Speaking after the meeting, Le Maire said the European Union was poised to take counter-measures against the new USA tariffs. But Cornyn said he believes the president's actions can not be stopped through legislation.
  • Putin Says Russian Military Not Building Long-term in Syria

    Putin Says Russian Military Not Building Long-term in Syria

    Russian President Vladimir Putin has characterized new us steel tariffs against its long-term allies as unjustified sanctions. The Russian government responded by mocking May and accusing the British government of fabricating the incident.

    Del Potro sets up French Open semifinal match against Nadal

    That means Saturday's final at the French Open will be Halep's third title match in the past five Grand Slam tournaments. Muguruza hopes to make her fourth career grand slam final and her second career French Open final.
    Alice Johnson embracing newfound freedom after two decades behind bars

    Alice Johnson embracing newfound freedom after two decades behind bars

    Johnson had an emotional reunion with her family Wednesday outside the prison in Aliceville, Alabama, where she served. Her commutation is inspirational & gives hope to so many others who are deserving of a second chance.
  • World Cup winners will get $38m

    World Cup winners will get $38m

    Iran lost 2:1 to Turkey in their last friendly on May 28, and have one last World Cup warmup against Lithuania on June 8. Meanwhile bookmakers already putting the odds of Iran winning the global football event at 500 to 1.
    IOS Apps Are Finally Coming to Mac

    IOS Apps Are Finally Coming to Mac

    Would you use Digital Wellbeing / Screen Time? Plus, it's getting iCloud syncing so it'll work well across all your devices. There will be contextual quick actions available as well, such as editing options for photos or create PDF for instance.
    Lady Gaga's Movie

    Lady Gaga's Movie "A Star Is Born" Finally Gets A Trailer

    Lady Gaga flaunts her figure Fri, January 5, 2018 Lady Gaga wasn't afraid to bare all when she stepped this rather risqué look. It was remade in 1954 with Judy Garland and James Mason and again in 1976 with Barbra Streisand and Kris Kristofferson .
  • How Liverpool Target Xherdan Shaqiri Was Blocked From Reds Move in 2014

    How Liverpool Target Xherdan Shaqiri Was Blocked From Reds Move in 2014

    He continued: "We need three or four players in, but if we get that, I think we can genuinely challenge Manchester City ". Southampton and Tottenham are two of the clubs interested in signing Shaqiri, although neither have yet made a move.
    Washington Capitals win first Stanley Cup in franchise history

    Washington Capitals win first Stanley Cup in franchise history

    Washington goalie Braden Holtby has a 2.13 goals-against average and.923 save percentage in the playoffs, with two shutouts. Over the next 18 seasons, the Capitals returned to the playoffs 12 times but their string of blows kept coming.
    Supreme Court sides with baker in same-sex wedding case

    Supreme Court sides with baker in same-sex wedding case

    It did state that "tolerance" for people of faith must be balanced with the rights of gay people in the marketplace. He said a Supreme Court ruling in his favor would "declare to the world that my faith is not a scarlet letter".


Most liked

Protester With a Bottle of Lotion Interrupts Scott Pruitt Speech
Greenwalt worked in several roles at the Oklahoma attorney general's office under Pruitt, lastly as his general counsel. Pruitt gave that impenetrable response to a question about the story.

Amazon is killing the TV remote
Amazon just announced its first new Fire TV product since the 4K Fire TV debuted in 2017, and it looks pretty fantastic. And if you don't have a cable box, Fire TV Cube will play content from a channel using the PlayStation Vue platform.

AMD unveils Ryzen Threadripper 2, RX Vega 56, Radeon Instinct roadmap
AMD's Threadripper series with 12 cores starts at around $760, and goes up to nearly $1,000 for a 16-core model. It will launch in both server and workstation form factors for key compute use cases in 2H 2018.

Golden Knights vs. Capitals: Game 5 Prediction
Washington captain Alex Ovechkin scored his 15th goal of the post-season and was given the Conn Smythe Trophy as the playoff MVP. Washington challenged for goalie interference, but the call on the ice stood before Smith gave the home side a 3-2 lead.

Ronaldo returns as Portugal down Algeria with Guedes brace
The Portugal national team continues its World Cup preparation on Thursday when it takes on Algeria in an global friendly. Portugal scored another goal near the end but it was called off by video review because of a hand-ball by Guedes.

Max Kellerman makes controversial LeBron James claim about Steph Curry
Curry called Durant's zone "supreme self confidence". "It's nearly like playing the Patriots ", James said after the game. Moreover, Durant also was a ideal 7-for-7 from the foul line and grabbed 13 rebounds to go with seven assists.

Stars mourn Kate Spade's death on social media
Soledad O'Brien said Spade's brand was empowering for young women. "She was also a staple of NYC who spread good will", she said. She said that Spade's brand is a go-to reward for success, and the designer's look became synonymous with strong femininity.

Computex 2018: Intel introduces 8086K 40th Anniversary Edition with 5GHz boost speed
The company says the six-core/12-thread CPU would be its first ever to reach a 5.0GHz turbo frequency without overclocking. Intel didn't announce how much the chip would cost, though the competition website lists its average retail price as $425.

Argentina-Israel Soccer Match Cancelled
Whatever side you believe in, Argentina's Football team's decision to not play against Israel is certainly a big statement. BDS stands for the boycott, divestment and sanctions movement against Israel.

Kanye West Offers His Condolences To Kate Spade's Family
The comedian shared multiple photos of the two smiling together, describing the designer as "so sharp and quick on her feet". One of those leaving a tribute was Ivanka Trump , who posted a touching tribute to Kate on her Instagram page.

Alexander Zverev comes back to reach French Open 4th round
Thiem has reached the semifinals at Roland Garros the past two years. "What can I say?" "Hopefully big things can happen here". Japan's Kei Nishikori made short work of home hope Gilles Simon as he cruised into the fourth round for the fifth time.

Melania Trump attends first public event since kidney operation
G7 summits are popular among spouses of the world leaders as they get together to attend various events of their own. And a fifth cheeky viewer even compared her to Kim Kardashian, writing: "That looked like Kim Kardashian".

Facebook has been sharing user data with 60 smartphone OEMs including BlackBerry
In 2011, the FTC decreed that Facebook is prohibited from overriding users' privacy settings without asking for their consent. It said information such as photos was only accessible on devices if users had chosen to share the data with those friends.

In a remarkable first, woman’s advanced breast cancer is eradicated
Not only will they be able to dodge the side-effects of chemotherapy but they'll also feel more confident in their decision. The rate that women who had also received chemotherapy was more than 84 percent, a statistically insignificant difference.

Why White House approach to China talks may backfire
All three have plan to retaliate with their own tariffs on USA goods, stoking fears of an escalating conflict. Ross and Liu held a working dinner Saturday ahead of their talks.