Peter Lynch [Former hear of Fidelity Magellan], Beating the Street, always invest in companies that could be run by any fool because sooner or later one will be running it.
It's funny, from dog clubs to HOAs to the US Congress to major corporations, events collude that cause humans to put idiots in charge of their affairs. It only isn't the rule in small firms and start-ups. Not that it doesn't happen there, but they fail so quickly that the public doesn't become aware.
from dog clubs to HOAs to the US Congress to major corporations, events collude that cause humans to put idiots in charge of their affairs.
Thirty-five years of experience taught me that usually the one with the least amount of knowledge and experience wants to be in charge the meeting, the organization or the entire show.
Isn’t that the Peter Principle?
https://en.wikipedia.org/wiki/Peter_principle
Personally I believe these kind of decisions are based on only one aspect of business.. greed. That is make the most profit possible without considering what that is going to cost you later.
I know the purpose of a business is to make money. But sometimes getting the highest return on your investment is not always the wise business decision when something goes wrong. What did it cost BP to clean up their oil spill and to cap the wells? They made a decision to cut corners and it bit them in the butt.