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.
Business Roundtable said it supports companies moving away from offering quarterly guidance and focusing on long-term goals.
So they should stop the forecasting, the two men said.
Although we've seen no immediate opposition to the proposed elimination of quarterly EPS guidance, it's not hard to imagine what at least one argument might be: just because companies don't publish the number does not mean they won't calculate such a number. They have said the practice of telling Wall Street what to expect from earnings can distort management's priorities.
Throw away pre-cut melon, CDC warns in multistate salmonella outbreak
The CDC said that 60 people have reportedly been infected with a strain of Salmonella Adelaide, with 31 people hospitalized. According to Food Safety News, there are 32 cases reported in MI , 11 in IN, 10 in Missouri, six in IL and one in Ohio.
Google's Sundar Pichai to stop AI weapon project
"We recognize that such powerful technology raises equally powerful questions about its use", he said in a blog post Thursday. Google released the guidelines soon after it said it would stop working with the military on the controversial Project Maven .
Prince Harry, Meghan Markle Attend Queen’s 92nd Birth Celebration
Click through the gallery to see the most stylish looks donned by the royals at 2018's Trooping the Colour . Princess Charlotte made her first appearance at 13 months and George shortly before his 2nd birthday.
Dimon has blasted excessive reporting requirements and the short-term focus of quarterly earnings.
Several big companies like AT&T, Coca Cola, Facebook and UPS have stopped issuing quarterly earnings guidance.
(FILES) This file photo taken on September 12, 2016 shows Jamie Dimon, chairman and CEO of JPMorgan Chase at the Economic Club of Washington, DC in Washington, DC. 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.
Dimon and Buffett noted that the pressure to meet short-term profit forecasts has contributed to a fall in the number of public companies in the U.S.in the past two decades, "depriving the economy of innovation and opportunity".
Dimon said Thursday that about 20 percent of Business Roundtable members still do quarterly guidance and about 60 percent provide annual targets. Companies including Unilever NV, Facebook Inc., GlaxoSmithKline Plc and BP Plc have scrapped the practice in favor of multi-year outlooks, according to the report.