CEO to be named soon for Berkshire, Amazon, JPMorgan healthcare venture

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They also said they have found a person to head up the venture that their two companies, plus Amazon, are forming to attack the health care system's high costs and quality problems.

In the op-ed, Dimon and Buffett said the pressure to meet short-term earnings estimates has contributed to a drop in the number of public companies in the United States in the past two decades.

Investors Buffett and Dimon are encouraging public companies to stop predicting their quarterly earnings and focus on long-term goals.

The two men noted that companies often hesitate to spend on technology, hiring, and research and development in order to meet quarterly earnings guidance that can be impacted by seasonal factors beyond their control, such as political events and even weather.

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Dimon is the chairman of the Business Roundtable, an association of CEOs of America's leading companies working to promote a thriving USA economy. In an interview earlier today on CNBC, Warren Buffett and Jamie Dimon told viewers to "beware" of bitcoin.

(FILES) This file photo taken on September 12, 2016 shows Jamie Dimon, chairman and CEO of JPMorgan Chase at the Economic Club of Washington, DC in Washington, DC.

Securities laws require quarterly reports on profits, revenue and other information but do not require quarterly forecasts.

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.

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"It can 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.

Quarterly earnings guidance works like this.

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 US economic growth".

Proponents of the practice say it improves communications with investors and ultimately results in fewer, not more, wild swings in stock prices.

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