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Stock Strategist

Boost Your Investment Batting Average

Swinging only at "fat pitch" stocks can elevate your odds of success.

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For sports fans, the NBA season is coming to a close, hockey was a no-show, and football is still several months away, which leaves us with that glorious summer pastime, baseball. For me, baseball season just begins to catch its stride in June, so what better time than now to review one of our favorite investing philosophies with a baseball twist: the fat-pitch approach to stock investing.

The fat-pitch approach to stock investing is best explained using a baseball analogy. In baseball, a batter who just stands and watches three strikes go past will be called out by the umpire, even if the pitches just barely graze the strike zone. Thus, baseball players often have an incentive to swing at pitches they would rather not, out of fear of being called out.

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Ryan Batchelor has a position in the following securities mentioned above: KO. Find out about Morningstar’s editorial policies.