Key insights
- The author argues against the potential shift to bi-annual reporting for US companies, claiming it reduces transparency without evidence of encouraging long-term investing or IPOs, referencing the UK's experience. They believe it benefits companies at the expense of shareholders and exacerbates short-term trading driven by 24/7 markets and headline-driven panic selling.
Man, I’m actually pissed. If the market switches to bi-annual reporting, it’s game over for transparency.
I just spent a ridiculous amount of time building an app specifically to track quarterly data (RIP my codebase), but personal bias aside, why would any shareholder want to know less about the company they literally own???
It’s absolute insanity.
The "rationale" they're feeding us is that we’re following the UK model to "encourage long-term thinking" and "incentivize more IPOs."
The reality? There is ZERO evidence for this. NONE. Since the UK implemented this, they haven't seen a surge in companies going public, and stock performance hasn't magically improved. It’s a solution looking for a problem that doesn't exist.
Don't let the "pro-investor" spin fool you. As an owner, I want every scrap of data I can get. If I could see daily sales and earnings in real-time, I’d be checking it. Having more information doesn't make you "short-term focused", it just gives you clarity.
You know what actually destroys long-term investing? 24/7 markets. And that’s exactly where we’re headed.
99% of the time, people don't lose money because the fundamentals changed to fast; they lose money because they panic when the price fluctuates for no reason. People see a headline like "AI is replacing all software,"watch their Adobe or Salesforce position tank, and sell at the bottom even though the company itself is fine. That's the real killer.
Maybe I’m just salty because my app is about to become a historical archive, but don't get it twisted: less reporting is bad for us and great for making the "wall" between investors and companies even thicker.
TL;DR: Bi-annual reporting is a scam, the UK "proof" is non-existent, and we’re being traded for less transparency while 24/7 markets encourage the very gambling they claim to be fixing. AND, aliens are real.