Charlie Munger on Wells Fargo: 'They have disappointed long-term investors like Berkshire'

Charlie Munger, Daily Journal Chairman and Berkshire Hathaway Vice Chairman, shares his thoughts on Wells Fargo’s impact on investors.

Video Transcript

CHARLIE MUNGER: There's no question about the fact that Wells Fargo has disappointed long term investors like Berkshire because the old management, which is now removed, were not consciously malevolent or thieving, but they had terrible judgment in having a culture of cross-selling, where the incentives on the poorly paid employees were too great to sell stuff the customers didn't really need.

And when the evidence came in that the system wasn't working very well, because some of the employees were cheating some of the customers, well, they came down hard on the customers instead of changing the system. That was a big error in judgment.