Here are some great quotes from Berkshire Hathaway's 2008 Annual Letter written by Warren Buffett with the help of his managers:
"By the fourth quarter, the credit crisis, coupled with tumbling home and stock prices, had produced a
paralyzing fear that engulfed the country. A freefall in business activity ensued, accelerating at a pace that I have never before witnessed."
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"In poker terms, the Treasury and the Fed have gone 'all in.'"
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"Moreover, major industries have become dependent on Federal assistance, and they will be followed by cities and states bearing mind-boggling requests. Weaning these entities from the public teat will be a political challenge."
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"...we were paid $2.8 billion to hold our float during 2008. Charlie and I find this enjoyable."
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"That’s the good news. But there’s another less pleasant reality: During 2008 I did some dumb things in investments."
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"Whether we’re talking about socks or stocks, I like buying quality merchandise when it is marked down."
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"Though Berkshire’s credit is pristine – we are one of only seven AAA corporations in the country – our cost of borrowing is now far higher than competitors with shaky balance sheets but government backing. At the moment, it is much better to be a financial cripple with a government guarantee than a Gibraltar without one."
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"At age 78, I’ve concluded that speed afoot is a ridiculously overrated talent."
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"Derivatives contracts, in contrast, often go unsettled for years, or even decades, with counterparties
building up huge claims against each other. “Paper” assets and liabilities – often hard to quantify – become important parts of financial statements though these items will not be validated for many years. Additionally, a frightening web of mutual dependence develops among huge financial institutions. Receivables and payables by the billions become concentrated in the hands of a few large dealers who are apt to be highly-leveraged in other ways as well. Participants seeking to dodge troubles face the same problem as someone seeking to avoid venereal disease: It’s not just whom you sleep with, but also whom they are sleeping with."