What I got out of Mr. Buffett's annual report part I (may not be a second part)

1) He used Clayton Homes and the mobile home community's early malfeasance with loans as a precursor to what occurred with home mortgages. (History rhymes!)

2) 2008 was the treasury bubble, and high grade corporates are cheap

3) Government actions imply inflation

4) Always have cash so you can sleep at night

5) Google Mae West quotes since they are apropo of what occurs in the marketplace

6) I feel a little bit better that he thinks oil will be a bit higher than it is today

7) Beware the investment activity that produces applause; the great moves are greeted by yawns.

8) Berkshire has a 35billion dollar bet that the SP500, FTSE100, NIKKEI225 , and EuroStoxx50 won't tank---think retained earnings!

9) Black-Scholes not exactly all there for long term risk assessment

10) Private equity used to be referred to as LBO groups, and whatever term used, are a bunch of putzes.

11) The US in the 20th century has gone through 2 world wars (and one we were losing at the beginning), a great depression, and several recessions, but through it all our standard of living has improved.

12) Hard to compete on funding due to the government picking the winners and losers but allowing them cheap access to capital. (like Citi)

12) Contrary to Mr. Bernanke's assessment, the economy may not be through the wash cycle as it cleans up the excesses of the previous bull market.