> Warren Buffett Blog: Companies should be more transparent in reporting earnings

Wednesday, July 27, 2016

Companies should be more transparent in reporting earnings

Earnings guidance can lead to a lot of malpractice. I've seen guidance produce some bad results.

There's a lot of attempts to find a couple extra pennies someplace. There are ways to move earnings toward the end of a quarter, and sometimes even after the end of a quarter. 

Report two real numbers; this year versus last year. 


Jamie Dimon of JP Morgan

Jamie gave me a call ... probably a little more than a year ago and suggested we get together and see if we could come together on some general principles for corporate governance that might help show a pathway to the future.