Clinging To Failed Ideas

Charles T Munger, Vice-Chairman of Berkshire Hathaway Corporation writes:

I want to tell one more story demonstrating how awful it is to get a wrong idea from a limited repertoire and just stick to it. And this is the story of Hyman Liebowitz who came to America from the old country. In the new country, as in the old, he tried to make his way in the family trade, which was manufacturing nails. And he struggled, and finally his little nail business got to vast prosperity, and his wife said to him, "You are old, Hyman, it's time to go to Florida and turn the business over to our son."

So down he went to Florida, turning his business over to the son, but he got weekly financial reports. And he hadn't been in Florida very long before they turned sharply negative. In fact, they were terrible. So he got on an airplane and he went back to New Jersey, where the factory was. As he left the airport on the way to the factory he saw this enormous outdoor advertising sign lighting up. And there was Jesus, spread out on the cross. And under it was a big legend, "They Used Liebowitz's Nails." So he stormed into the factory and said, "You dumb son! What do you think you are doing? It took me 50 years to create this business!" "Papa," he said, "trust me. I will fix it."

So back he went to Florida, and while he was in Florida he got more reports, and the results kept getting worse. So he got on the airplane again. Left the airport, drove by the sign, looked up at this big lighted sign, and now there's a vacant cross. And, low and behold, Jesus is crumpled on the ground under the cross, and the sign said, "They Didn't Use Liebowitz's Nails."

Well, you can laugh at that. It is ridiculous but it's no more ridiculous than the way a lot of people cling to failed ideas. Keynes said, "It's not bringing in the new ideas that's so hard. It's getting rid of the old ones." And Einstein said it better, attributing his mental success to "curiosity, concentration, perserverance and self-criticism. By self-criticism he meant becoming good at destryoing your own best-loved and hardest-won ideas. If you can get really good at destryoing your own wrong ideas, that's a great gift.