Bitcoin sceptic Jamie Dimon tells buyers to 'beware'

Bitcoin sceptic Jamie Dimon tells buyers to 'beware'

"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", Dimon said.

Warren Buffett, Jeff Bezos and Jamie Dimon have picked a leader for their health care venture.

They also said they have found a person to head up the venture that their two companies, plus Amazon, are forming to attack the health care system's high costs and quality problems.

"Public companies should be managed for long-term prosperity, not to meet the latest forecast". 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, is chairman of the Business Roundtable, an association of almost 200 CEOs that is also backing the push to eliminate so-called short-termism. JPMorgan Chase reported lower fourth-quarter earnings January 12, 2018 on weak trading revenues and one-time costs from USA tax reform, partly offset by gains from higher interest rates.Net income for the quarter ending December 31 was $4.2 billion, down 37 percent from the year-ago period. Without company guidance, analysts' estimates are likely to vary more, making share prices more volatile at the same time that estimates become less valuable to investors and, horror, not worth paying for.

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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.

Buffett said most CEOs are good at making the right decisions for their companies' long-term future, but ending the forecasts would be one way to improve.

Quarterly earnings guidance works like this. "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.

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

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