Market” gives you, The best classification I have read of these pitches is the one by Peter Lynch in his book "One Up on Wall Street." According to the book, there are six categories of stocks: It is the same in the stock market - there are different pitches that “Mr. Curve, I think,” even when he’d hit a home run. 280 hitter, but he’d come to the bench and I’d say, “What was the pitch?” “I dunno. Ted Williams said: “It dumbfounded me when a batter couldn't tell what he had hit. Here are other interesting excepts from the book that may helped Warren Buffett to become a better investor. It is said that this discipline enabled Williams to have a higher lifetime batting average than the average player. ![]() Williams would wait for a specific pitch (in an area of the plate where he knew he had a high probability of making contact with the ball) before swinging. Warren Buffett is a great admirer of Ted Williams and, on several occasions, has shared William’s disciplined approach with Berkshire’s ( BRK.A)( BRK.B) holders. The only way you can have a strike is to swing and miss.” You can stand there at the plate and the pitcher can throw the ball right down the middle, and if it’s General Motors ( GM) at $47 and you don’t know enough to decide General Motors at $47, you let it go right on by and no one’s going to call a strike. “In investments, there’s no such thing as a called strike. The game of investing doesn’t force you to take the bat off your shoulder and swing, unlike the batter in the stadium. What distinguishes you from a baseball player, however, is that you don’t ever have to swing. ![]() As the batter, you must decide which of the thousands of pitches to swing at, and which you will let whiz by. ![]() The stock market is like a major league pitcher who fires thousands of pitches a day, with each pitch representing a certain stock at a certain price. A called strike was better than making an out.īuffett extends the same reasoning to stock picking. He realized that it was often better to take a pitch on the fringe of the strike zone rather than swing for a low average. In constructing a template for success, Williams outlined a pattern of patience. However if Williams received a pitch in his optimum strength zone, he put all his muscle into it, knowing that he could consistently produce a higher batting average. A low and outside pitch produced the same results - a success rate far below Williams’ lifetime batting average. If he consistently swung at those pitches, his batting average would suffer. Williams knew, for example, that a high and inside strike pitted his weakness against the pitcher’s strength. His contribution to the game was to reduce the waiting time to hit a perfect pitch he said that a good hitter can hit a pitch that is over the plate three times better than a great hitter with a questionable ball in a tough spot. He had the intelligence of a lead-off hitter and the brawn of a power hitter the patience of a bench warmer, and the bat control of a single hitter. 344 lifetime average) that no player had ever done before.
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