Two industry titans recent issued a call for inaction. Famed investor Warren Buffett and JPMorgan Chase CEO Jamie Dimon took to the opinionsection of the Wall Street Journal last week with a call for all public companies to move away from issuing quarterly earnings guidance. The reasoning is sound, as the relentless focus by corporations on hitting their quarterly numbers leads to “an unhealthy focus on short-term profits at the expense of long-term strategy, growth and sustainability”. While I wholeheartedly applaud the effort, I would encourage them to go one important step further.
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