How Corporate America Tries to Forget Its Mistakes

https://www.loc.gov/item/99614477/

Companies are notorious for burying their blunders. “You can understand why the people who made the mistake want to make sure it gets forgotten before it makes an impact on their pay,” says Charles Munger, Warren Buffett’s business partner.

“It’s in the nature of humans and organizations, after they succeed mightily, to get very pompous and complacent,” says Mr. Munger when asked about Wells Fargo & Co., which has had repeated failures of risk management. “Lots of mistakes can then ensue….”

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This article was originally published on The Wall Street Journal.


Further reading

Benjamin Graham, The Intelligent Investor