Tomorrow's Business Today
Real profits and PR games
In case you didn’t already think Warren Buffett is the smartest businessman of the age with the most natural bullshit detection warning system, more reason to love him arrives.
His Berkshire Hathaway conglomerate reported its latest excellent results on Saturday and did what he usually does: played them down, and said they were unlikely to be repeated.
Most of all, he scoffed at his own reported profits of $96.2 billion. That’s £76 billion if you prefer, or 1.6 trillion Mexican Pesos.
A lot.
Buffett considers this reported figure to be “worse than useless” since accounting rules require the company to record swings in the value of its stock portfolio, totally unrealised gains, if gains they ever turn out to be, was his point.
Profit of $37.4 billion would be a more sensible figure for how he did, he said.
This is funny because three times last week I got complaining phone calls from flaks who didn’t like that I had used the lower number in the reporting of their client’s figures.
I know better than Warren Buffett, is what they didn’t realise they were saying.
In particular, the flaks don’t like it if you report a fall in the value of certain company assets. It’s a non-cash intangible! they say, like I’m a fool for reporting it.
In recorded flak history, none have complained when the non-cash intangible is in their favour, when it flatters their CEOs figures, who may or may not be struggling, but who sure as eggs is not Warren Buffett.
I think hacks should stand firm on this.
Press release of the day
The FCA is going to move faster and be more transparent on enforcement cases – but that’s not necessarily a good thing.
Imogen Makin at WilmerHale says: “The damage to firms’ reputations – and to ongoing business – from the early announcement of an FCA investigation would be significant, without any proof of wrongdoing, and seems unjustified.”
Stories that will keep rolling
1) Nationwide ups mortgage rates. Evening Standard
2) M&S raises pay in battle for staff. BBC
3) How UK regulators are missing the chance to make the best of Brexit. FT
4) Musk accused of polluting German rivers. Telegraph
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