Buffett and Munger share wit, wisdom with shareholders

The recent credit crunch that has created turmoil in financial markets has also created opportunities.

Buffett said Berkshire has invested about $4 billion in auction rate securities because the interest rates those bond funds offered became attractive. Buffett offered one example of a municipal bond fund that offered 3.5 percent interest one week and 8 percent the next as the market was disrupted.

"This happened with billions and billions and billions of securities," Buffett said.

The $330 billion auction rate securities market used to offer investors the chance to buy and sell long-term bonds frequently, because the interest paid on the bonds was reset every seven, 28 or 35 days.

But investors began fleeing late last year as the credit crunch intensified, and investment banks, in turn, starting backing away from their promise to buy the bonds at auctions.

That caused many auctions to technically fail.

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HEALTH

Neither Buffett or Munger are likely to win a doctor's endorsement of their health advice.

Buffett, 77, took a bite of candy from the box in front of him, and then recommended a balanced diet of See's Candy, Wrigley's gum and Coke products. Berkshire owns See's and a large stake in Coke, and it will soon own part of Wrigley.