x

Politics

Greek-American Jamie Dimon Urges End to Quarterly Profit Forecasts

June 10, 2018

OMAHA, Neb. (AP) — Investor Warren Buffett and JP Morgan Chase’s Jamie Dimon are encouraging public companies to stop predicting their quarterly earnings and focus on long-term goals.

The two executives said on CNBC Thursday that companies that focus on hitting their quarterly numbers may do things that hurt them in the future, such as delaying investments or changing when certain gains are recorded.

“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,” Buffett said.

Dimon, who also leads the Business Roundtable group, and Buffett co-wrote an article about why they think quarterly profit forecasts are hurting the economy.

Dimon said companies might forego investments they should make in their business, such as marketing, hiring or research to hit short-term goals.

“It can 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,” Greek-American Jamie Dimon said.

Buffett has never provided profit forecasts and doesn’t even have an investor relations department at his Berkshire Hathaway conglomerate.

“I’ve never seen a company whose performance has improved by having some forecast out there by the CEO that we’re going to earn X,” Buffett said.

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

There has been great interest in these companies’ health initiative since it was announced early this year, but few details have been released so far.


By JOSH FUNK , AP Business Writer

RELATED

LONDON - Prime Minister Kyriakos Mitsotakis had a meeting with Greeks of the diaspora while in London on Wednesday, during which he highlighted the options that Greeks living abroad now have to vote in Greek elections from their place of residence, as well as his government's emphasis on reforms.

Top Stories

Associations

ASTORIA – The Pancyprian Choir of NY held its first meeting of 2022 and shared best wishes for the New Year with their annual cutting of the traditional vasilopita at Dionysos Taverna in Astoria on January 24.

Associations

BRONX, NY – In a festive atmosphere, the traditional cutting of the vasilopita was held by the Northern Chios Society of Pelineon Agia Markella in the community hall of Zoodohos Peghe Greek Orthodox Church in the Bronx on January 23.

Society

ATHENS – A major snow storm that had been predicted for days still caught residents in Greece offguard and the New Democracy government scrambling for answers as to why motorists were stuck for hours on major roads.

Video

Democrats Eye Supreme Court Pick to Revive 2022 Prospects

Democrats stung by a series of election year failures to deliver legislative wins for their most loyal voters hope they'll be buoyed by the prospect that President Joe Biden will name the first Black woman to serve on the Supreme Court.

Enter your email address to subscribe

Provide your email address to subscribe. For e.g. abc@xyz.com

You may unsubscribe at any time using the link in our newsletter.