Berkshire Hathaway’s Charlie Munger says that Wells Fargo (WFC) will be better in the long run after a scandal last fall involving as many as 2 million fraudulent accounts opened without customers’ permission.

“Well of course Wells Fargo had a glitch,” Munger said at the 2017 Daily Journal Meeting (DJCO) in Los Angeles on Wednesday. “Truth of the matter is they made a business judgment that was the wrong. They got so caught up with cross selling and so fourth that they got the incentive system so aggressive, I guess some people reacted badly and did some things they shouldn’t. And then they used some misjudgment … Wells Fargo, they made a mistake. And it was an easy mistake to make.”

Back in September, Wells Fargo (WFC) was fined $185 million after regulators found employees at the retail bank opened up the bogus accounts to meet sales targets. The bank fired more than 5,000 employees tied to the scandal.

The bank’s now-former CEO, John Stumpf, was grilled on Capitol Hill over the cross-selling scandal with Sen. Elizabeth Warren (D-Mass) slamming him for “gutless leadership.” Just two weeks later, Stumpf, a 35-year veteran at the bank, retired as chairman and CEO. Tim Sloan, the company’s COO, took over as the CEO.

But the incentive system wasn’t the real mistake, according to Munger.

“I think the mistake there was when the bad news came they didn’t recognize it rightly. They made a mistake. What happens in a tough system like capitalism, you make a mistake like that and you’re gone,” Munger said.

He continued: “They didn’t react enough to the bad news fast enough. Of course that’s a very dangerous thing to do. I don’t think it impacts the future of Wells Fargo. As a matter of fact, they’ll be better for it. The nice thing about doing something dumb is you probably won’t do it again.”

Berskhire Hathaway (BRK-A, BRK-B) has been invested in Wells Fargo since 2001. Berkshire remains the largest shareholder, with more than 479.7 million shares, a position valued at more than $28 billion. Berkshire didn’t sell any Wells Fargo stock following the scandal through the end of 2016, regulatory filings show.

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Julia La Roche is a finance reporter at Yahoo Finance. Follow her on Twitter.

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