Key ideas: Published in 2005. "For the first time ever, the wit and wisdom of Charlie Munger is available in a single volume: all his talks, lectures and public commentary." (From the Foreword to Poor Charlie's Almanack)
As I conclude, 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 cried to make his way in the family trade, which was manufacturing nails. And he struggled, 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 lighted up. And there was Jesus, spread out on the cross. And under it was a big legend, "They Used Leibowitz's Nails." So he stormed into the factory and said, "You dumb son! What do you think you're doing? It took me fifty 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, lo and behold, Jesus is crumpled on the ground under the cross, and the sign said, "They Didn't Use Leibowitz'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.