Buffett, chairman and CEO of Berkshire Hathaway Inc., and Dimon, chairman and CEO of J.P. Morgan Chase & Co., said in a joint Wall Street Journal editorial that they are encouraging all public companies to move away from the practice.
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.
Companies often hold back spending on technology, hiring, and research and development to meet quarterly earnings guidance that may be affected by factors outside the company's control, the business leaders wrote.
Several big companies like AT&T, Coca Cola, Facebook and UPS have stopped issuing quarterly earnings guidance.More news: Beckham divorce rumours 'embarrassing waste of time' claims spokesperson
Dimon said the Business Rountable has been quite clear that it doesn't think tariffs are the way to do it.
Meanwhile, billionaire investor Warren Buffett and Berkshire Hathaway Vice Chairman Charlie Munger told FOX Business' Liz Claman last month that bitcoin was "more expensive rat poison", after previously comparing it to the deadly chemical five years ago.
Despite the short-term hit to results from the tax bill, chief executive Jamie Dimon hailed the measure as a boon for the USA economy."US companies will be more competitive globally, which will ultimately benefit all Americans", Dimon said in a news release.
On Thursday morning, the Business Roundtable which includes CEOs of US companies with more than 16 million employees and more than $7 trillion in annual revenues, weighed in supporting the proposal.More news: Manchester United’s Fred suffers injury in Brazil training
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.
Dimon has blasted excessive reporting requirements and the short-term focus of quarterly earnings.
Both men said they still want companies to release detailed quarterly and annual financial data, so investors can evaluate them. "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.More news: NASA Solves The Mystery Of Jupiter's Lightning
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