What investors can learn from Buffett's letter to shareholders

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In his recently released letter to shareholders- that has been a must read for decades- billionaire Warren Buffett gives a treasure trove of investment insights, management tips, and witty witticisms.

Here are 5 memorable quotes that will surely be talked from Buffett's annual letter:

1. In 2008, Buffett more than quadrupled Berkshire's stake in ConocoPhillips when oil and gas prices were near their peak. It cost the company several billion dollars. "During 2008 I did some dumb things in investments. I made at least one major mistake of commission and several lesser ones that also hurt.''

2.I spent about $2 billion buying several bond issues of Energy Future Holdings, an electric utility operation serving portions of Texas. That was a mistake - a big mistake.

3.Last year, I told you that "a housing recovery will probably begin within a year or so." I was dead wrong. But Buffett is surely a good sport about his mistakes.

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4. "People may postpone hitching up during uncertain times, but eventually hormones take over. And while `doubling up' may be the initial reaction of some during a recession, living with in-laws can quickly lose its allure," he said, adding that " Housing will be back-you can be sure of that.

5. On share buybacks: "The first law of capital allocation - whether the money is slated for acquisitions or share repurchases - is that what is smart at one price is dumb at another."

You can read the entire Buffet letter below. The important lessons are highlighted in yelow.. Enjoy!