I read annual reports of the company I'm looking at and I read the annual reports of the competitors - that is the main source of material.

By periodically investing in an index fund, the know-nothing investors can actually outperform most investment professionals.

With housing it's something even more dramatic than that, because most people aspire to own their own home.If you really think that houses prices are going to go up next year and the year after, you feel if I don't buy it this year, I'm going to have to buy it next year.That's not true of an Internet stock. But it's true of a home.

I don't look to jump over 7-foot bars: I look around for 1-foot bars that I can step over.

If you were at Lehman, the same thing happened. If you were at AIG, the shareholders are getting creamed on these things. And those shareholders are not just a bunch of big shots in Wall Street. Those are pension funds, and those are investors all over the country. I wouldn't worry too much about that. Justice won't be perfect on it.

Cash combined with courage in a time of crisis is priceless.

Cash never makes us happy, but it's better to have the money burning a hole in Berkshire's pocket than resting comfortably in someone else's.