Warren Buffet is one of the most popular investors in stocks that has shown importance of exercising patience and staying in the areas you are competence in. He also regularly uses the analogy of the baseball player who only strikes the ball when it’s in his or her sweet-spot. However? Unlike baseball there are no called strikes in investing. An investor can wait for a minute to days for a good pitch to come along.
The person Buffett usually refers to is the Hall-of-Fame slugger Ted Williams, a player for the Boston Red Sox. Ted is considered as the greatest batter of all time.
The difference between Ted Williams and the rest of the batters is that he approached his batting in a methodical way, he worked out his optimal strike zone where the odds were in his favor and he maintained the discipline yo blg swing of the ball was in that zone. When he retired he has the highest score of all time with .344 batting average, 521 home runs and a 0.482 on base percentage.
In Warren Buffet’s 1997 letter, he said that they will try to exert a Ted Williams kind of discipline. Ted explained in his book that he carved the strike zoned info 77 cells, each the size of a baseball. He only swings at the balls in his best calls that he knew that would allow him to bat. 400 reaching for balls in his worst spot.
In Becoming Warren Buffet, an HBO Documentary, Buffet notes that the trick in investing is to just sit and wait for the pitch to go by to your sweet spot and if people around you are yelling, ‘Swing, you bum! ‘ you should just ignore them.
In the book The Science of Hitting, Ted Williams bored “Everybody knows how to hit-but very few really do” and this is the same for investing.
The Profit is in the Buying
“Hitting is the most important part of the game, it is where the big money is.”
Thinking is Key
“Something you must always take up there with you: proper thinking”
Patience is Critical to Successful Investing
“The longer a batter can wait on pitch, the less chance there is that he will be fooled”
Stick within your Circle of Competence
“You can see in the strike zone picture what I considered my happy areas, where I consistently hit the ball hard for high averages, and the areas graded down to those spots I learned to lay off, especially that low pitch on the outside 3½ inches of the plate. Ty Cobb once said, “Ted Williams sees more of the ball than any man alive—but he demands a perfect pitch. He takes too many bases on balls.”
“I gave the pitcher the outer 2 or 3 inches of the plate on pitches over the low-outside corner”
Continue to Learn
“Hitting is self-education—thinking it out, learning the situations, knowing your opponent, and most important, knowing yourself.”
“Practice, practice, practice. I said I hit until the blisters bled, and I did, it was something I forced myself to do to build up those hard, tough calluses.”
Its not an Exact Science
“If there is such a thing as a science in sport, hitting a baseball is it. As with any science, there are fundamentals, certain tenets of hitting every good batter or batting coach could tell you. But it is not an exact science.”
Control your Emotions
“Hitting a baseball—I’ve said this a thousand times, too—is 50 per cent from the neck up”