Buffett and Dimon Are Shortsighted About Investors
Shareholders need more power, not less guidance.
Look in the mirror.
Photographers: Giulia Marchi (Dimon)/Bloomberg; Bill Pugliano (Buffett)/Getty Images
Warren Buffett and Jamie Dimon want public companies to give shareholders more of the cold shoulder than they already do. That would leave financial markets worse off for future generations, not better, as they contend.
On Thursday morning, Dimon and Buffett, along with the Business Roundtable, called on public companies to stop issuing quarterly corporate guidance. They said the move would help reverse the market’s focus on short-term results, which they say holds back companies from hiring and investing in the future. That sounds great, but the proposal misunderstands where all the short-term pressure is coming from. It all starts with titan CEOs like Dimon and Buffett.