Warren Buffet on Equity Bonds

@0.40  Anything can happen in the market, therefore, don't borrow money to invest.
@1.39  Look at the business to see if you have made a good investment, not the price.
@3.30  Many shareholders look at Berkshire as a savings account.
@3.50  Interest rates are gravity on the stock prices.  When interest rates are so low, the stock prices are going to rise.
@4.10  30 year government bond versus equity bond (hear Warren Buffett's explanation).
@5.10  When value of government bond offers higher coupon rates, it affects the value of your equity bonds.
@5.40  The yardstick is government bond.  The higher the yardstick goes, the less attractive are these other bonds.
@5.53  In 1982/83, when the long government bond got to 15%, a company that was earning 15% on its equity was worth no more than its book value in those circumstances.  A business that was earning 12% then, was a sub-par business.  
@6.15 to 7.00  On the other hand, a business earning 12% on equity when the government bond is 3% is a fantastic business to own.
@7.10  If you told me interest rate is going to be 15% next year, there will be a lot of equity I do not wish to own.
@7.30  Idiotic to own long term bond.
@8.05  Asset allocation to bonds and stocks.  Some people should never own stocks, especially if they are emotionally or psychologically not tuned to owning them, doing something stupid.
@8.53  The longer you hold stocks, the less risky they be, the longer you hold bond, the more risky they become.
@9.22  Investing is not easy, psychologically for most people.  Some gets the message, some don't.