Warren Buffett Says Investors Should Measure Their Investing Success On ‘Slugging Percentage, Not Batting Average’

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not batting average,” he wrote in 1992, using the sport’s statistics to illustrate how he evaluates Berkshire Hathaway’s results and, more broadly, how he believes investors should measure success.The comment appears in one of Buffett’s annual shareholder letters, communications that have become widely studied for their clarity and investment insight. In this context, the baseball analogy serves to distinguish between activities that look productive on the surface and those that actually create long-term value. A high batting average suggests frequent but modest hits, while a strong slugging percentage reflects fewer but more consequential swings — an idea Buffett applies to capital allocation decisions.Nvidia's Earnings Report Will Be Out on Wednesday, Nov. 19 - How to Play NVDA StockNVDA Earnings, FOMC and Other Key Things to Watch this WeekThe Market Just Pulled Back. Here Is How To Protect Gains And Reset RiskMarkets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines.Buffett’s authority on this topic stems from decades of disciplined investing in which major successes, rather than frequent small gains, have driven Berkshire Hathaway’s expansion. The conglomerate’s holdings in companies such as Coca-Cola (KO), American Express (AXP), and GEICO have generated returns that far outweigh numerous smaller or shorter-duration investments. The baseball analogy is rooted in Buffett’s belief that identifying a handful of exceptional opportunities and committing to them meaningfully yields better long-term performance than constantly seeking incremental gains.The immediate context of the quote focuses on Berkshire’s uneven reported earnings, which fluctuate in part because of accounting rules requiring market valuations of its equity holdings to be reflected each year. Buffett has frequently emphasized that these short-term variations do not define the company’s economic strength. Instead, he measures success by the long-term compounding of intrinsic value — his version of slugging percentage — rather than by the frequency of quarterly wins or the avoidance of temporary setbacks.This framing aligns with his broader investing philosophy, which encourages patience, selectivity, and concentration when high-confidence opportunities arise. In contrast to traders who prioritize high activity and short-term results, Buffett’s approach values decisiveness when conditions are favorable and restraint when they are not. The analogy reinforces his view that swing selection — choosing when to act for highest impact — is more important than how often one takes action.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,649.50 +9.75 (+0.15%)Dow Futures46,239.00 +55.00 (+0.12%)Nasdaq Futures24,640.25 +44.50 (+0.18%)Russell 2000 Futures2,359.20 +3.50 (+0.15%)VIX24.69 +2.31 (+10.32%)Gold4,080.40 +13.90 (+0.34%)PortfolioSign in to access your portfolioSign inTop gainersONDS Ondas Holdings Inc. 7.84 +1.59 (+25.34%)DGNX Diginex Limited 16.20 +2.61 (+19.21%)LGN Legence Corp. 44.93 +4.81 (+11.99%)TMC TMC the metals company Inc. 5.42 +0.54 (+10.95%)SRRK Scholar Rock Holding Corporation 39.81 +3.34 (+9.14%)Top losersNICE NICE Ltd. 105.65 -15.21 (-12.58%)KLAR Klarna Group plc 31.63 -3.25 (-9.32%)PACS PACS Group, Inc. 14.43 -1.27 (-8.09%)SNDK Sandisk Corporation 244.93 -20.95 (-7.88%)GPCR Structure Therapeutics Inc. 34.50 -2.94 (-7.85%)Most activeNVDA NVIDIA Corporation 181.36 -5.24 (-2.81%)ONDS Ondas Holdings Inc. 7.84 +1.59 (+25.34%)PLUG Plug Power Inc. 2.1400 +0.0550 (+2.64%)OPEN Opendoor Technologies Inc. 7.52 -0.32 (-4.08%)BBAI BigBear.ai Holdings, Inc. 5.98 +0.41 (+7.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersPLUG Plug Power Inc. 2.1400 +0.0550 (+2.64%)TMC TMC the metals company Inc. 5.42 +0.54 (+10.95%)HD The Home Depot, Inc. 336.48 -21.55 (-6.02%)OLMA Olema Pharmaceuticals, Inc. 20.14 +11.62 (+136.39%)WBD Warner Bros. Discovery, Inc. 23.69 +0.95 (+4.18%)Top economic events