Skip to 24:00 in this video. I love the point Warren Buffett makes.
I had always heard the phrase “a bird in the hand is worth two in the bush” but I never knew the meaning. Nor did I ever take the time to Google the meaning.
After a quick Google search (actually, I may have used Bing) I found:
“It’s better to have a small, real advantage than the possibility of a greater one”.
Buffett says that Aesop’s famous fable isn’t quite complete because you have to ask yourself two questions:
1. How sure are you there are two in the bush?
2. How long do you have to wait to get them out?
Because I love a good “For Dummies” translation, let’s phrase it this way:
It’s better to have a small, real advantage than the possibility of a great one. But you have to ask yourself two questions:
1. How sure are you that the greater advantage will come into fruition?
2. How long will it take?
This is a terrific approach to real estate. It will help me make educated decisions for questions like:
• When should I buy?
• Where should I buy?
• Should I sell for capital gains or hold onto it for rental income?
• How long should I hold onto it?
• How much should I leverage?
• When should I slow down and wait?