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3. "Earnings missed estimates."

 

No. Earnings don't miss estimates; estimates miss earnings. No one ever says "the weather missed estimates." They blame the weatherman for getting it wrong. Finance is the only industry where people blame their poor forecasting skills on reality.

 

4. "Earnings met expectations, but analysts were looking for a beat."

 

If you're expecting earnings to beat expectations, you don't know what the word "expectations" means.

 

These two.

 

So crazy how so many businesses are managed to hit analyst estimates rather than what is best for the business in the long-term... Our civilization would allocate capital much more effectively if these 'targets' didn't exist.

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But I think it's great for long term investors. When a company "misses" an estimate, the price usually drops thus allowing investors like us to add to a position at a lower price.

 

I love the financial media industry and the sell-side analysts. They help cause greater price volatility and volatility is my friend.

 

Of course. It's like Buffett's comment that maybe he should fund EMT chairs at universities, or something of the sort :D

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