He's saying that if someone does not have integrity, it's better that's they're ...

throwaway5752 on March 18, 2015 | parent | context | favorite | on: Warren Buffett Just Wrote His Best Annual Letter

He's saying that if someone does not have integrity, it's better that's they're dumb and lazy so they accomplish less and cause less harm. The tacit assumption is that someone without integrity will make decisions and act on them in ways that hurt the company.