Munger asserted that the history of what he doesn’t like in modern corporations comes from the directive by headquarters to have earnings go up continually and smoothly, a practice he refers to as “the blood brother of evil.” Buffett noted that the world just does not work that way, and it leads to a lot of bad things. CEOs with big egos making precise predictions are kidding investors, themselves or both. This, in turn, sets up a system that exerts psychological and financial pressure to do things that people don’t want to do.
