His response comes the same week that Howard Schultz, former CEO of Starbucks, announced that he will step down at the end of the month, causing speculation that he intends to follow President Donald Trump's example and run for high office.
Hedge fund Elliott Management Corp Chief Executive Paul Singer said on Thursday he agreed with billionaire investor Warren Buffett and JPMorgan Chase & Co (JPM.N) CEO Jamie Dimon that companies should move away from providing quarterly earnings guidance.
The practice of forecasting has come under severe criticism in recent times with investors pressurising firms to deliver to their promises, said CNBC. That's not too surprising given the Dimon is now the chair of the Business Roundtable.
"I have seen managements. get tempted by the predictions that they've made", Buffett said. It's a very, very bad practice, and once it gets going, it feeds on itself.
The two men noted that companies often hesitate to spend on technology, hiring, and research and development in order to meet quarterly earnings guidance that can be impacted by seasonal factors beyond their control, such as political events and even weather.
A short-term focus by top executives teaches others within a business to make their own short-term decisions that aren't in the best interests of the business, he said.
Stock trades generate fees for financial managers, so there's opposition to nearly anything that can lead to less trading.
Dimon has blasted excessive reporting requirements and the short-term focus of quarterly earnings.
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Many CEOs who take part in the common practice of providing Wall Street estimates of how much money their companies will make often feel "pressure" to meet those quarterly forecasts.