Bird in Hand Is Better Than Two in a Bush

Topics: Investment, Risk, Finance Pages: 2 (493 words) Published: July 1, 2012
A bird which one has got in the hand is always more valuable that two or three birds which await one in the bush. That is so because, the birds in the bush can

always fly away and leave the person with nothing while the one in his hand cannot escape. So if the person lets the bird in his hand go free and tries to catch those

in the bush, they may also fly away leaving him a complete loser. It is always wise to utilize whatever opportunity is at hand than look forward to some other

opportunity that may come in future with more advantages. It is better to be satisfied with whatever change is there and make the most out of it than wait for a

better one which may never come. This applies to people also. Those who are near to us and willing to help are more valuable friends that those who are away.

Those who are away might not be willing to help at all. So it is foolish to reject whatever help is at hand. The wise man always relies on the present instead of laying

his hopes on future gains.

As the saying goes “A bird in the hand is worth two in the bush”, which is popularly applied to variety of daily life, because it warns us about the effects of greed,

we can conclude from it that risk control can be an important element of investment.

Firstly, people do not want to take risk, especially when the amount of capital is large. For example, when a person has only 2 dollars to invest, he would be likely

to buy a lottery, which has a very low probability of getting income that means a high risk of investment. While if he has 200 millions, he would be more careful so

that he might take a less risky investment

item. So we can get to the conclusion that the risk of investment and the amount of capital may have a negative relationship.

Secondly, let’s imagine: if we pitch a coin, we will get a head side or tail side. As the number of times we pitch increases, the result will become closer to half-to-

half chance of either...
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