The return of baseball has us dreaming of summer days in the park. We’ve written about baseball and the markets before, as the rich history and data in both draw parallels.
We’re not the only ones; Uncle Warren Buffett himself has used baseball to think about Mr. Market.
As Buffett quipped, “The stock market is a no-called-strike game. You don’t have to swing at everything.”
Our “plate discipline,” as it were, has been strengthened by time. But the ability to let investment opportunities go by is only part of it.
Once you understand that you don’t have to swing at everything, you can discover your strengths. Our principles guide what “pitches” we swing at. We only swing when we think we can hit it out of the park. (Of course, like the best batters, it’s possible to miss from time to time).
Just as there are batters who seek out certain types of pitches, investors can do the same. We don’t pretend that our approach is the only way. If another batter likes the high ones, good for them—not for us.
Clients, if you’ve got a pitch you’d like to heave at us, give us a call.
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