Our record of persuading decent, intelligent people to stop doing dumb things is very poor. (Munger added, “Worse than poor.”) When people want to do something, they do it. When someone rises to be CEO, he doesn’t want to hear a shareholder telling him that his latest idea is dumb.
It’s better to be in a business with management you’re simpatico with than in a great business in which this isn’t the case.
We’ve learned more about human nature than understanding businesses in our long-term experience.
Warren Buffett – American value investor, Chairman of Berkshire Hathaway (b. 1930), at the general assembly 2001, Quotations book 2002