All posts tagged State Street Global Advisors

Investors and the weather

investors

As financial reports are disseminated quarterly and stock performances analysed in real-time to investors, there is one determinant that the majority of companies are providing incomplete, misleading, or obscure information for. Worse, they are conveniently blaming disappointing financial results on it, and yet not employing the appropriate risk management strategies to address it. Investors deserve better.

The Chief Financial Officer in providing second-quarter results, including a profit decline of 4%, is asked to explain the disappointing results. His answer? “I hate to use the weather, but a lot of it was the weather.” “We are an industry that is susceptible to weather,” he explained further.

If you are thinking this is a mom-and-pop operation, a start-up, or a tourism operator, you would be wrong on all counts.

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