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of UnitedHealth Group stock.10 stocks we like better than UnitedHealth Group ›It's easy to find dozens of insightful quotes from Warren Buffett over the years. When you look at annual meetings, shareholder events, interviews, and reports, Buffett has given investors many words of wisdom to help guide them to make smarter investing decisions.I'm going to sum up the most important parts of all that in just two words: "fat pitch." In the past, Buffett and the late Charlie Munger have talked about the importance of waiting for the fat pitch, as a hitter might in baseball. And if you do, it can set you up for great returns and keep your risk low.Image source: Getty Images.The fat-pitch strategy relates to picking your spots as an investor and not straying from what you know. Doing so could result in getting into risky investments. Buffett often stays within what he considers to be his "circle of competence" -- sectors and industries that he knows well. That's why you'll see many consumer goods, oil and gas, and financial companies at the top of Berkshire Hathaway's portfolio, as these are the companies Buffett knows best. There are tech and other stocks in Berkshire's portfolio that make up smaller positions because Buffett isn't the only person who makes purchases for the company. However, when he's bullish on a company, he knows the business inside and out.The concept of a fat pitch, particularly in baseball, can help underscore another important Buffett tip over the years -- and that's to take time and wait for the right opportunity. This means buying when valuations are low and others are fearful. Waiting for that fat pitch to come within your zone and then taking a big swing could result in a strong, low-risk investment that has the potential to become much more valuable in the future. Not only can the upside be significant, but you avoid taking on much risk. Earlier this year, Buffett bought shares of health insurance giant UnitedHealth Group (NYSE: UNH) as it was tumbling in value. It was a move that fits right within his wheelhouse, as Buffett loves insurance businesses. When you combine that with a beaten-down valuation and plenty of bad news weighing down the stock, Buffett likely saw an opportunity -- or a fat pitch -- that was too good to pass up.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,897.25 +23.25 (+0.34%)Dow Futures47,847.00 +125.00 (+0.26%)Nasdaq Futures26,113.00 +109.00 (+0.42%)Russell 2000 Futures2,499.50 +9.60 (+0.39%)VIX17.44 +0.53 (+3.13%)Gold3,979.60 -16.90 (-0.42%)PortfolioSign in to access your portfolioSign inTop gainersBHF Brighthouse Financial, Inc. 57.07 +11.38 (+24.91%)ILMN Illumina, Inc. 123.54 +24.53 (+24.78%)TWLO Twilio Inc. 134.88 +22.02 (+19.51%)TVTX Travere Therapeutics, Inc. 35.16 +5.51 (+18.58%)BFAM Bright Horizons Family Solutions Inc. 109.23 +16.95 (+18.37%)Top losersATGE Adtalem Global Education Inc. 98.02 -43.75 (-30.86%)SPSC SPS Commerce, Inc. 82.24 -21.65 (-20.84%)TBBK The Bancorp, Inc. 65.37 -11.83 (-15.32%)DXCM DexCom, Inc. 58.22 -9.98 (-14.63%)ABR Arbor Realty Trust, Inc. 10.09 -1.46 (-12.64%)Most activeNVDA NVIDIA Corporation 202.49 -0.32 (-0.16%)AMZN Amazon.com, Inc. 244.22 +21.36 (+9.58%)PFE Pfizer Inc. 24.65 +0.36 (+1.48%)OPEN Opendoor Technologies Inc. 7.77 +0.43 (+5.86%)ONDS Ondas Holdings Inc. 6.44 +0.15 (+2.38%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersBTC-USD Bitcoin USD 110,348.45 +335.30 (+0.30%)ETH-USD Ethereum USD 3,894.22 +27.94 (+0.72%)XRP-USD XRP USD 2.52 +0.02 (+0.78%)VOLT Tema Electrification ETF 30.49 -0.08 (-0.26%)SOL-USD Solana USD 187.91 +2.37 (+1.27%)Top economic events