Why Charlie Munger and Warren Buffett refused to buy companies with bad managers

As a general rule, holding company Berkshire Hathaway does not buy companies run by bad managers. That’s a little bit unusual, former Fortune editor-at-large Pattie Sellers pointed out to company CEO Warren Buffett and his business partner Charlie Munger, who died at age 99 this week, in a 2014 interview. “A lot of people like to buy good companies with bad managers and then replace them,” she said. Not the approach at Berkshire Hathaway, the two responded. “We tried that, with predictable results,” Buffett said, adding that “life is so...