That is actually a misunderstanding of Buffets quote. He was...

That is actually a misunderstanding of Buffets quote. He was referring to markets in relation to this not individual businesses. If you read further into his mindset you will find that he actually has a negative view on investing in businesses in distress. He would much rather find a good solid business that is in the middle of the pack and buy it, rather than buy something looking down the barrel of death.

Furthermore, there would never be a world that Buffet would buy a company where it was discovered that they have been lying about the valuations of their assets to create paper performance fees to inflate the valuation of the business, to raise more capital from the market, to invest into more assets, further lie about the valuations, create even more paper performance fees, raise capital, etc.

All until the merry go round stops and shareholders see a market cap fall from 1billion to 150 million in 6 weeks.

Integrity / Trust is crucial and Buffet wouldn't touch this company ever.