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Nils Pratley on finance
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Two mistakes from the US educational publisher would be understandable. Their confidence three months ago? Less so
Forecasting is difficult, especially about the future, as the old line goes – but is it quite as hard as John Fallon, chief executive of Pearson, makes it seem?
Two errors in 2016 were understandable, or at least not unique. Most big US educational publishers were too optimistic about the numbers of students enrolling in US colleges and the number of students who would opt to rent, rather than buy, their textbooks.
Related: Pearson profit warnings wipe almost £2bn off its value
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