Thursday, 21 June, 2018

Buffett, Dimon urge end to quarterly profit forecasts | AP business

Bad Advice       Quarterly guidance has resulted in bigger earnings surprises since 2016              Source Bloomberg Bad Advice Quarterly guidance has resulted in bigger earnings surprises since 2016 Source Bloomberg
Marlene Weaver | 10 June, 2018, 07:13

The two men are among the financial industry's most powerful leaders.

The health-care venture between Berkshire Hathaway Inc., Amazon.com Inc. and JPMorgan Chase & Co. has picked the person who will lead the initiative.

Billionaire investor Warren Buffett and JPMorgan Chase (JPM.N) Chief Executive Jamie Dimon voiced concerns that the financial markets' focus on short-term goals is hurting the economy and urged companies to move away from providing quarterly earnings guidance, according to the Wall Street Journal. They plan to name the venture's first CEO publicly within two weeks.

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.

Dimon is the chairman of the Business Roundtable, an association of CEOs of America's leading companies working to promote a thriving USA economy. They have said the practice of telling Wall Street what to expect from earnings can distort management's priorities. "Their ego gets involved".

Despite being down 3-0 in Finals, LeBron's Greatness Continues to Shine
Kevin Durant won his second straight NBA Finals MVP trophy. "We all want something that's bigger than ourselves". The Warriors proceeded to out-score the Cavs 17-7 in overtime in what was the first of four straight wins.

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.

Back in September, Dimon said bitcoin "wasn't going to work" and called it a "fraud" at an investor conference. Stock prices can go up or down based on whether a company exceeds or falls short of the prediction it has made three months earlier, often increasing the amount of trading in the company's stock.

The opinions and forecasts expressed herein are exclusively those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.

"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.

Recommended

Star Wars: Jedi Fallen Order announced by Respawn Star Wars: Jedi Fallen Order announced by Respawn And tomorrow, at EA Play , we will hear a little bit about one of them, according to Respawn CEO Vince Zampella . At E3 2018 we finally got some details, including a title, a story outline, and an approximate release date .

Trump Says He’ll Know Outcome of North Korea Summit After One Minute Trump Says He’ll Know Outcome of North Korea Summit After One Minute Brisbane retiree Raymond Ferguson is secretary for the Australia Democratic Republic of North Korea Friendship Association. He went on to say that the objective of the summit would "be more meaningful with Russian Federation ".

Justify wins Triple Crown with dominant victory at Belmont Justify wins Triple Crown with dominant victory at Belmont Baffert is unsure whether to bring Solomini back from the Derby, though it wouldn't make much sense to put him in Justify's way. Take American Pharoah , who won nine out of the 11 races he entered, including the Triple Crown in 2015.

Modi, Xi hold talks, will have informal summit in India next year Modi, Xi hold talks, will have informal summit in India next year It also enables the Chinese side to provide hydrological data if water level exceeds mutually agreed level during non-flood season.

Stephens takes swipe at 'haters' in media Stephens takes swipe at 'haters' in media The most recent match was in the 2017 Cincinnati Masters, a match Halep won in straight sets. Take a look at some of the best tweets after Halep's hard-earned victory.

Secret Obama-era license let Iran tap dollars Secret Obama-era license let Iran tap dollars USA sanctions block Iran from exchanging the money on its own. "He explained OFAC would only take action in egregious situations". They warned that unless Tehran was willing to give up more , the US shouldn't give Iran anything more than it already had.

Verizon CEO to Retire, Succeeded by a Newcomer Verizon CEO to Retire, Succeeded by a Newcomer Verizon has also been touting its upcoming 5G network, which promises to bring faster data speeds to businesses and consumers. The unexpected appointment of Hans Vestberg indicates that Verizon may not acquire a media / content company to rival AT&T.

US reaches deal with China's ZTE, says Wilbur Ross US reaches deal with China's ZTE, says Wilbur Ross The company will also need to put $400 million into escrow, money that will be reserved in case ZTE violates the new agreement . ZTE also wanted to be more present in the American smartphone market, but the April shutdown had complicated that plan.

Could this be LeBron James’ final home game in Cleveland? Could this be LeBron James’ final home game in Cleveland? That means the Warriors get two chances to bring on an early summer: If they lose Game 4, they'll play host to Game 5 on June 11. Months of weight will lifted off him once the Warriors , who haven't lost four straight games since 2013, are crowned again.

England vs Costa Rica: Rashford, Welbeck seal win for Three Lions England vs Costa Rica: Rashford, Welbeck seal win for Three Lions Of England's chances in Russian Federation , he added: "Gareth has a great group of players there". But if it means seeing more goals like that of Rashford's tonight, then I'm all for it.

What to do if you suspect someone is suicidal What to do if you suspect someone is suicidal Researchers found that more than half - 54 percent - of people who died by suicide did not have a known mental health condition. However, data shows more Nevadans under the age of 18 committed suicide this year already, compared to all of last year.

Twin Mirror is the next game from Life is unusual developers Dontnod Twin Mirror is the next game from Life is unusual  developers Dontnod The game does not now have a set release date at this time, though it is expected to arrive early 2019 on PlayStation 4. But he wakes up in his hotel room to a bloody shirt and lost memory of the night before.

Mayweather Becomes Highest-Paid Athlete With $275m A Night Mayweather Becomes Highest-Paid Athlete With $275m A Night The latest list features athletes from 11 different sports, with basketball leading the way with 40 contenders. That stems largely from his fight in August with UFC fighter Conor McGregor .

Celebrity chef Anthony Bourdain kills himself Celebrity chef Anthony Bourdain kills himself As president, Barack Obama sat down for some bun cha in Hanoi, Vietnam, with Bourdain in an episode of " Parts Unknown " in 2016. Anthony Bourdain's girlfriend Asia Argento posted a head-scratching image on social media mere hours before he died by suicide .

David and Victoria Beckham marriage in pictures David and Victoria Beckham marriage in pictures Victoria's representative denied the rumour telling Harper's Bazaar , "This is nonsense ", when asked about the claims. In addition to their daughter, Harper , they share three other children: Brooklyn , 19, Romeo , 15, and Cruz , 13.