Buffett And Dimon: No More Quarterly Profit Forecasts

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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.

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. At JPMorgan's investor day in February, he called on companies to stop providing the guidance, saying earnings are hard to predict and companies have an incentive to fudge numbers.

Dimon said CEOs can influence their quarterly results by not opening branch offices, cutting research and development spending, reducing their marketing and other decisions that could hurt future earnings.

They said the pressure for companies to meet short-term estimates was hurting the United States economy. Last month, he said the goal is to challenge the entire healthcare industry, not individual segments. In the past, Buffett has said that he could record some of Berkshire's unrealized investment gains at nearly any time if he wanted to make a quarter or year look good, but that wouldn't help the company succeed in the long run.

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Both men said they still want companies to release detailed quarterly and annual financial data, so investors can evaluate them.

"Quarterly earnings guidance often leads to an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability", they said in the op-ed. "We're hoping a bunch of companies drop it right away". The group said public companies should be managed for long-term prosperity, not to meet the latest forecast.

Buffett told CNBC on Thursday that the CEO will probably be announced within two weeks.

The three corporate leaders said in January that their companies - Berkshire Hathaway, Amazon and JPMorgan Chase - would work together to give their combined 840,000 employees better health care choices.

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