Why it is time to follow Warren Buffett and buy

Warren Buffett calls it waiting for the "fat pitch." It's a baseball analogy which says swing at the ball (invest) when it's most hittable (cheapest). As in baseball, these moments are few and far between and they tend to occur during selling climaxes, when throwing the bat feels hardest.

Buffett picked up the idea from Ted Williams, who played for the Boston Red Sox in the middle of the last century and is considered to be one of baseball's greatest hitters. Williams had steely self-discipline and would only swing at the pitches he knew he could hit out of the ground. Buffett plays the same way, which is why his decision to invest $5bn into Goldman Sachs this week is significant.

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