In a CNBC "Squawk Box" program interview and an opinion piece published in the Wall Street Journal, Buffett and Dimon said quarterly forecasts, known on Wall Street as "guidance", take up management's time and lead to decisions that don't benefit companies or their shareholders.
Buffett, who is chairman of Berkshire Hathaway Inc (BRKa.N), and Dimon wrote in a Wall Street Journal column on Thursday that the pressure to meet short-term estimates has contributed to a fall in the number of US public companies.
Warren Buffett, chairman and CEO of Berkshire Hathaway Inc., and Jamie Dimon, CEO of JPMorgan Chase & Co. Making a forecast, and then hitting the target, are seen as a way to manage expectations and eliminate volatility.
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Buffett and Dimon helped produce a set of voluntary governance guidelines two years ago, which was signed by more than one dozen executives.
"When companies get where they're sort of living by so-called 'making the numbers, ' they do a lot of things that really are counter to the long-term interests of the business", Buffett said.
More than 100 million Americans invest in public companies directly or through mutual funds and millions more participate in corporate, public and union pension plans.
Proponents of the practice say it improves communications with investors and ultimately results in fewer, not more, wild swings in stock prices.
Quarterly earnings guidance works like this. They have said the practice of telling Wall Street what to expect from earnings can distort management's priorities. Around that time, big companies like Coca Cola, UPS and AT&T said they would no longer give quarterly guidance.
Business Roundtable President & CEO Joshua Bolten said, "An outsized emphasis on quarterly earnings per share projections undermines the importance of investments in infrastructure, workforce development and other crucial capital expenditures that drive sustained USA economic growth".