An investment expert is taking a contrarian view of President Trump’s idea to do away with quarterly earnings reports.
Bill Cohan, CNBC contributor and author of “Why Wall Street Matters,” says reducing earnings reports to twice a year is a step in the wrong direction.
“To take away from the marketplace half the information on every company that’s a public company, that’s going to, I think, create a lot of bad will among stockholders.”
He says corporate leaders such as Amazon’s Jeff Bezos have proven that stock holders can be persuaded to take the long view on return on investment.
“They all bought off on that. And when [Amazon] started making money in the last couple of years or so, everybody was sort of surprised and pleased and drove up the valuation of the stock of the company even further, making him by far the world’s wealthiest man.”
Bill Cohan was a guest on McIntyre in the Morning.
By Sandy Wells
KABC News