Question: The stock fell off a cliff late last October, presumably after the headquarters was raided. At around 37 last week, it was fetching less than 10 times 2008 profit estimates of $5 a share. When did you start buying the shares? Answer: We came in after it fell off the cliff, when it was trading in the 30s late last year. As for the investigation, the only thing we know was that there were 200 agents that raided their campus. But, to this day, we don't know exactly what is involved, except that these kinds of investigations usually involve billing practices. Still, it's growing nicely and its valuation is significantly less than those of a UnitedHealth Group, WellPoint or Humana. The government needs all of these companies to implement its health plans.

Question: It looks pretty cheap, trading at roughly 12 times 2008 profit estimates. Answer: The CEO, Jeffrey Lorberbaum, has done a wonderful job of cutting costs, making some acquisitions and growing the business. They are still doing very well in a difficult environment. The stock gets pushed down, based on the residential real- estate situation. But we still believe the company has the ability to earn about $7 of free cash flow a share this year, even in a difficult time, and into the future. They can earn much more than that if things get better, and they are expanding in Europe.

Question: What gets the stock higher? Answer: Just a-little-bit-different assumptions in growth rates make a huge difference over time. Having said that, Berkshire isn't going to be able to do what it's done in the past, owing partly to the law of large numbers and because Warren Buffett is getting older. The company still has the ability to outperform the index. But it's not going to produce the 27%-per-annum return he has achieved for the past 42 years. Buffett is the first one to tell you that's pie in the sky. But at this price, the company is unbelievably well-positioned to have one more good growth spurt from this environment. You can sleep extremely well at night holding this stock. Sometimes a good bit of the trick to investing is not losing. If you can focus on not losing, the winning takes care of itself. For Berkshire Hathaway, the worse the environment gets, the better it's going to do.

Question: The stock's now around 40, down from the mid-80s in 2005. Answer: Under the right management, this is a very, very valuable company, but it is tough to see because of the long-term nature of the product and the lack of understanding that people outside the panhandle have of the panhandle. But we are talking about what everybody wants: oceans, rivers, lakes, sand and a nice climate.

Question: At 94 and change recently, the stock was down about 50% from its peak nearly a year ago. What gives you confidence in Eddie Lampert, the hedge-fund manager who took over Sears in 2005 and serves as the retailer's chairman? They just went through another top-management shakeup recently. Answer: Look at Lampert's overall performance. He has done a good job with retail holdings in the past, and he understands Sears' assets. We've looked at a lot of the tax assessments and location maps on many of their properties, which have a lot of value and provide downside protection. We're in the middle of a very difficult environment, so Sears is being priced for a very, very difficult outcome. Meanwhile, it's making money, and has significant assets, so I'm not concerned. We've had a position since September.