Small-cap Treasure: Is a bird in the hand is worth two in the bush?

Closer look at RHB Investment Bank’s top 20 Malaysian small-cap "jewels" for 2024

Warren Buffett often refers to Aesop’s saying, “A bird in the hand is worth two in the bush,” to illustrate how investments value should be evaluated. This principle emphasizes the importance of assessing the certainty, timing, and value of future returns by asking three key questions: How certain are you that there are birds in the bush? When will they appear? And how many will there be?

Though simple, this approach applies to all financial assets and remains relevant today, even with technological advancements. By using the right metrics, investors can assess the potential of different opportunities. Last year, we identified a promising investment using the CAN SLIM method, and this company was recognized as one of RHB Investment Bank’s top 20 Malaysian small-cap "jewels" for 2024. Now, it’s time to reassess how many "birds" are in the bush and what their future value might be. Would it be the next 10X investment we are looking for?