“BRK always has $20 billion or more in cash. It sounds crazy, never need anything like it, but some day in the next 100 years when the world stops again, we will be ready. There will be some incident, it could be tomorrow. At that time, you need cash. Cash at that time is like oxygen.

When you don't need it, you don't notice it. When you do need it, it's the only thing you need. We operate from a level of liquidity that no one else does. We don't want to operate on bank lines.

Something like that will happen maybe a couple of times in your lifetime. Two things when it happens again – don't let it ruin you, and if you have money/guts, you'll have an opportunity to buy things at prices that don't make sense. Fear spreads fast, it is contagious. It doesn't have anything to do with IQ. Confidence only comes back one at a time, not en masse. There are periods when fear paralyzes the investment world. You don't want to owe money at that time, and if you have money, then you want to buy at those times. Be greedy when others are fearful and fearful when others are greedy."