I think something like this circular logic is actually useful, and in some sense true. It might better phrased as "companies which usually make bad financial decisions die, so the decisions of a company which hasn't died are probably financially beneficial." Further qualifiers could be added to account for longevity of a company (we might put more faith in a company which has spent longer not dying), earning reports, and the fact that a good decision isn't necessarily beneficial (just probabilistically so given available knowledge), but the basic reasoning seems valid.