Imagine you’re at a baseball game.
The pitcher is throwing ball after ball—some fast, some slow, some curving wildly. As the batter, you feel the pressure to swing. But in baseball, if you let three good pitches pass you by, you’re out.
Now, imagine an investment world where that rule doesn’t exist.
Warren Buffett famously explained that in investing, there are no “called strikes.” The market can throw hundreds of ideas at you every day—hot tech stocks, speculative ventures, complex financial products—but you face no penalty for letting them all go by.
You can wait, patiently, for that one perfect pitch—the one that’s right in your sweet spot.
The Essence of Buffett’s “Fat Pitch” Philosophy
A “fat pitch” is a rare and perfect opportunity: A great, understandable business that is on sale at a fantastic price.
Buffett’s genius isn’t in frantic, daily trading—it’s in his profound patience. He waits for these high-confidence moments and then swings for the fences.
He’s not talking about dozens of trades a year, but a select few investments over a lifetime—the ones where the odds are overwhelmingly in your favor.
Buffett’s “Fat Pitch” Strategy in Action
Buffett’s legendary track record is built on this principle of extreme patience combined with extreme decisiveness. Here are a few classic examples of how he waited for the perfect pitch—and then swung with conviction.
🥤 Coca-Cola (1988): Buying a Gem in the Rubble
After the 1987 “Black Monday” market crash, fear gripped Wall Street. Investors were selling indiscriminately—even the stock of Coca-Cola was hit.
While others panicked, Buffett saw a fat pitch. He recognized it was a market event, not a business problem. Coca-Cola’s powerful brand, global reach, and loyal customer base were completely unaffected.
Between 1988 and 1989, Buffett invested over $1 billion, acquiring a stake worth more than 20% of Berkshire Hathaway’s assets. That single swing paid off:
- Coca-Cola’s stock soared
- Berkshire earned billions in dividends
- The annual dividend income today exceeds the original investment cost
This was a home run—not from trading daily, but from one perfectly timed swing.
💳 American Express (1964): Finding Clarity in a Scandal
In the early 1960s, American Express was rocked by the “Salad Oil Scandal.” A client had committed massive fraud—claiming to hold tanks of salad oil that turned out to be mostly seawater.
Wall Street panicked. The stock price halved.
Buffett saw a fat pitch forming. He didn’t just read reports—he went out and asked Omaha businesses whether they still used American Express. They did.
He realized:
This was a Wall Street issue, not a brand issue.
With conviction, he poured 40% of his investment partnership’s capital into the stock. It rebounded spectacularly—becoming one of the longest-held and most profitable investments in Berkshire’s history.
🍏 Apple (2016): Understanding a Modern Moat
For years, Buffett avoided tech stocks. But in 2016, he saw Apple for what it truly was: A consumer products company with brand power and fan loyalty.
He wasn’t investing in tech. He was investing in:
- A globally beloved brand
- A sticky ecosystem
- Enormous pricing power
- A durable competitive moat
Berkshire began buying shares, ultimately investing tens of billions. The result? Over $100 billion in profit—Buffett’s most profitable investment ever.
He waited until he understood the pitch—and then swung big.
🎯 Takeaway: Be Patient and Selective
You don’t need to swing at every pitch the stock market throws.
Buffett’s approach shows us that patience and selectivity are investor superpowers. You don’t need to buy stocks constantly or chase every hot tip.
Instead:
- Do your homework
- Be patient
- Wait for a business you understand at an attractive price
When that rare pitch comes—and it feels like a sure hit—swing with confidence.
There’s no umpire in investing. No penalty for waiting. The only real mistake is swinging at bad pitches.
By waiting for the right one, you ensure you’re still at the plate when a home-run opportunity comes your way.