Fat Pitch Investing According to Morningstar

Ryan Batchelor over at Morningstar wrote an article yesterday titled, “Boost Your Investment Batting Average“. The article captured the essence of the “fat pitch” style of investing that I try to follow. I highly recommend you read it to get a better understanding of what fat pitch investing is all about.

Batchelor boils the “fat pitch” investment philosophy into 5 key parts, which I describe as follows:

1. Seek companies with wide economic moats.
2. Always maintain a margin of safety when investing.
3. Cash is king. Holding cash is not a bad thing.
4. Focused investing in a few stocks is not something to fear.
5. Limit your trading costs and maintain a long term perspective.

Overall, I agree with Batchelor’s description of fat pitch investing. The only thing I was surprised about was that this article didn’t mention that the use of the phrase “fat pitch” to discuss investments came from a Warren Buffett quote