CEO for Berkshire, Amazon, Chase heath venture on the way

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Warren Buffett, CEO of Berkshire Hathaway Inc, pauses while playing bridge as part of the company annual meeting weekend in Omaha, Nebraska U.S. May 6, 2018.

Warren Buffett, Jeff Bezos and Jamie Dimon have picked a leader for their health care venture.

"We think the president has raised some very critical issues about trade, especially with China, around state owned enterprises, fair competition, market access, the ability to own 100% of a company, and these things should be negotiated out and the Business Roundtable supports those issues", Dimon said.

Buffett, who runs Berkshire Hathaway Inc., and Dimon, CEO of JPMorgan Chase & Co., said in a joint Wall Street Journal editorial that they are encouraging all public companies to consider moving away the practice, arguing that it can stifle long-term investments.

They argue that short-term guidance has encouraged companies to hold off on technology spending and hiring and research, and has even discouraged many private companies from going public at all.

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Earnings forecasts "can often put a company in a position where management, from the CEO down, feels obligated to deliver earnings and therefore may do things that they wouldn't otherwise have done", Dimon said Thursday in an interview with CNBC. In the past, Buffett has said that he could record some of Berkshire's unrealized investment gains at nearly any time if he wanted to make a quarter or year look good, but that wouldn't help the company succeed in the long run.

Buffett and Dimon started down this path in 2016 with a document called Commonsense Corporate Governance Principles that included recommendations for "truly" independent corporate boards of directors and "constructive engagement" between corporate management and shareholders, as well as eliminating quarterly EPS guidance.

Buffett said most CEOs are good at making the right decisions for their companies' long-term future, but ending the forecasts would be one way to improve. "We should have an announcement on that matter within maybe two weeks".

There has been great interest in these companies' health initiative since it was announced early this year, but few details have been released so far.

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