(BRK.A), (BRK.B)
Warren Buffett credits an ancient storyteller with delivering one of the earliest — and most enduring — lessons in investing: Aesop.
At the 2000 Berkshire Hathaway Annual Meeting, Buffett highlighted the fable writer’s well-known proverb: “A bird in the hand is worth two in the bush.” According to Buffett, this simple line captures the core of investment thinking.
“It’s an investment equation,” Buffett explained. “You trade a bird in the hand — your money today — for the possibility of more birds in the bush — future returns. But the decision hinges on a few critical factors: how many birds are actually in the bush, when you’ll get them, and the prevailing interest rates.”
Buffett illustrated that if you expect to receive two birds in five years, and interest rates are low (say, 5%), it may be a good trade. But if rates are high (like 20%), holding onto the bird in hand and compounding it could yield a better return.
He emphasized that evaluating growth — or future gains — always requires context: timing, alternative opportunities, and the cost of capital.
In essence, Buffett said, investing is all about value: “What is it worth? How many birds are in the bush? When will you get them? And what are the interest rates?”
Aesop may not have had a finance degree, but Buffett believes his fable laid the groundwork for 2,600 years of investment insight.
Hear Buffett’s full explanation
See the complete Lessons From Warren Buffett series
© 2025 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.