You know he’s right. Quarterly reports kill. I personally know of CEO’s who were hired for one reason only – manage the quarterly report. We call these public companies Corporations. In Spanish they are called Sociedad Anónima or Anonymous Society. THAT is a better name because the ‘stockholders’ (and 50% of Americans directly or indirectly own stock) DEMAND performance anonymously. They don’t know what the company does, how it is doing long term, what it takes to grow the right way – they demand amazing profit EVERY 90 DAYS!!
You watch some of these companies in March, June, September and December. They scramble. They fire. They delay. They move things. Hurricanes, earthquakes, tidal waves and tornados disrupt supply chains less than quarterly reports do today. As a speaker at our LA Regional said several weeks ago, in 2008 when the economy hit, CEO’s quit listening to their marketers, their merchandisers, their designers and artists and only listened to their financial guys. Trust me, this started WAY before 2008.
Hey, the smartest people in our business make their own clothes……..This is my opinion only……..Mike
Why Apple’s Tim Cook Is No Fan of the Quarterly Earnings Report
Tim Cook would gladly do away with the quarterly report system, the Apple chief has said in an interview. But not for Apple’s sake, as such.
Asked whether investment markets help or hinder innovation, Cook told Fast Company that Apple, as an outlier, was not affected by the reporting system.
However, he continued: “More generally, if you look at America, the 90-day is a negative. Why would you ever measure a business on 90 days when its investments are long term?”
“If I were king for a day, that whole thing would change,” Cook added. Read More