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Warren Buffett, Aesop & Two Birds in the Bush

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In the Berkshire Hathaway 2000 letter to shareholders, Warren Buffett explains how Aesop's fable of two birds in the bush is analogous on how to value a stock or a company:  Leaving aside tax factors, the formula we use for evaluating stocks and businesses is identical. Indeed, the formula for valuing all assets that are purchased for financial gain has been unchanged since it was first laid out by a very smart man in about 600 B.C. (though he wasn’t smart enough to know it was 600 B.C.).  The oracle was Aesop and his enduring, though somewhat incomplete, investment insight was "a bird in the hand is worth two in the bush." To flesh out this principle, you must answer only three questions. How certain are you that there are indeed birds in the bush? When will they emerge and how many will there be? What is the risk-free interest rate (which we consider to be the yield on long-term U.S. bonds)? If you can answer these three questions, you will know the maximum v...

The Dog in the Manger | Aesop's Fables

There was a dog asleep in the Manger which was filled with hay. The dog was awakened by the cattle which came from working all day in the field, hungry and tired. But the dog won’t let them come near the Manger, he would growl and snap at them angrily. As if the Manger was filled with bones and meat for him. The cattle looked at the dog with hatred and disgust. “Why so selfish,” said one. “He cannot eat hay, and yet not letting us eat as well, though we are hungry for it.” When the farmer came in, he saw the whole scenario and how the dog was behaving. He seized a stick which drives the dog out the stable. The dog received as many as a blow for his selfish and rude behavior. The cattle then ate the hay at peace and thanked the farmer with a content heart for driving the dog put of their abode. The Moral of the Story Do not grudge others what you cannot enjoy yourself. Eliot/Jacobs Version A dog jumped into the Manger of an ox filled with hay, to take a nap. When the ox came back ...

The Ant and the Grasshopper | Aesop's Fables

One fine summer day, a grasshopper was leaping in the field, chirping and singing with a full heart. A group of ants walked by the grasshopper prattling while carrying plump kernels of corn, struggling. “Where are you headed, with those heavy things?” asked the grasshopper. “To our anthill, this is one of the third kennels that I delivered today.” The first ant replied, without stopping. “Instead of working so hard, why don’t you come here and sing with me?” offered the grasshopper. “We are storing this food for winter and I think that you should do the same”, said the ant. “The winter is yet a long way to come, and this is such a wonderful day to play” sand the grasshopper. But the ants didn’t give any attention to him and continued their work of storing food by going ahead. Soon enough the weather changed and there was cold everywhere. There was a thick blanket of snow covering the field and grasshopper couldn’t dig through it to have food. And grasshopper found himself dying of hung...

The Boy Who Cried Wolf | Aesop's Fables

There was a shepherd boy, who used to incline his master’s Sheep near a dark forest, close to the village. Before long, he found the life in the pasture a little boring. To make the day entertaining, he would talk to his dog or play on his shepherd’s pipe. One day when the forest was quiet and the sheep ate the grass solemnly, an idea came to his mind. He considered what he would do to if wolves come out of nowhere, and he thought of an evil plan to amuse himself. The master of the boy has instructed him, that if ever the flock was attacked by the wolves, he should call for help and the villager will scare them away. So now, even though he has not seen a wolf still he ran towards the village, shouting at the top of his lungs, “Wolf!, Wolf!” As he was expecting, the villagers left everything that they were doing when they heard the cries of the boy. They headed towards the flock of sheep in great excitement, to scare the evil creatures away. But upon their arrival, the shepherd boy doub...

The North Wind and the Sun | Aesop's Fables

The Greek fabulist and storyteller, Aesop is the brainchild behind the fable of the North Wind and the Sun. This is a story where the north wind and the sun are personified by the storyteller to have human qualities such as being able to quarrel and argue over who is stronger than the other. Aesop uses this narrative to bring out the aspect of significance of both of these features. As expected of a good fable, multiple versions have been developed, each of them tracing its root to Aesop’s version but his remains the most authentic. The North Wind and the Sun It once happened that the North Wind and the Sun began to argue with each other. The basis of the argument was strength. Each of them was insisting that he was stronger than the other was. Their quarrel resulted into a lot of heat from the sun and lots of bluster from the wind. While they were still arguing, there was a traveler passing by having wrapped himself in a cloak and had a cap on, and so the two rivals decided to u...

The Hare and the Tortoise | Aesop's Fables

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The late Aesop is known to have written multiple fables. These fables are instrumental in delivering learning approaches to children. The fables confer moral values, life skills and many other beneficial principles to the lives of children in different parts of the world. The fable of the tortoise and the hare stands as one of Aesop’s most popular stories despite the fact that it only features three characters. Its audience extends to all corners of the world. Curriculums have incorporated this moral story in their syllabus to help children grow up with the ideal moral values. The Hare naps while the Tortoise crosses the finish line - Drawing by Askur Eyland (9 years old) This fable is known by many teachers and children. Following its popularity, multiple versions have been generated although the concept remains the same. Out of all the existing versions of the fable of the tortoise and the hare, Aesop’s version stands out because of its authenticity and that is why it r...

The Lion and the Mouse | Aesop's Fables

Aesop has written many fables that have been used to teach children about important moral values. One of his most famous stories is that of the lion and the mouse. The story is very famous and common among children. There are also many similar versions of the story that have been written over time. However, the Aesop’s version is the most original as well as the most common. The story is full of useful teachings’ that it gives to each reader despite it being a very short story with just two characters. The Tale of the Lion and the Mouse One day, the lion, who is the king of the jungle, was taking his afternoon nap. He was resting peacefully as he used his paws as a pillow to support his head that was full of mane. A tiny mouse was playing nearby and without its knowledge; it accidentally stepped on the nose of the lion. The lion was startled from its sleep and as the mouse tried to run away, it held him by the tail in place using its paws so much, so that the mouse could not move ...