(Adds comments on tech investments, airlines)
May 6 (Reuters) - Billionaire investor Warren Buffett and Berkshire Hathaway Vice Chairman Charlie Munger are answering five hours of questions from shareholders, journalists and analysts at Berkshire's 52nd annual meeting in Omaha, Nebraska.
The weekend known as "Woodstock for Capitalists" is unique in corporate America, a celebration of the billionaire's image and success at a conglomerate whose businesses range from Geico insurance to the BNSF railroad to See's candies to Ginsu knives.
Below are a few of the comments from Buffett, the "Oracle of Omaha," on topics ranging from Wells Fargo to celebrating a pioneer of index funds.
ON TECHNOLOGY HOLDINGS IBM AND APPLE
"When I bought IBM six years ago, I thought it would do better in the six years ... than it has. Apple is much more of a consumer products business. In terms of analyzing moats around it, consumer behavior ... they are two different types of decisions. I was wrong on the first one, and we'll find out whether I was right on the second."
"I could be making two mistakes on IBM. It's harder to predict in my view ... how much price competition will enter in something like cloud services."
"We missed (Amazon.com) entirely. We've never owned a share."
"It's a fiercely competitive industry. The question is if it's a suicidally competitive industry. It has been operating at 80 percent or better of capacity for some time ... it's fair to say they will operate at higher degrees of capacity over the next 5 or 10 years than at historical rates. They actually at present are earning quite high returns on invested capital, I think higher than FedEx or UPS."
"It is no cinch that the industry will have more pricing sensibility in the next 10 years, but the conditions have improved for that."
ON INTEREST RATES
"I do not think it's easy to predict the (course) of interest rates at all."
"It is the nature of market systems to occasionally go haywire in one direction or another."
"When the rest of the world is fearful, we know America is going to come out fine."
ON MARKET SPECULATION
"(Keynes said) there's always some speculation ... People can get very excited about speculating in markets. There's nothing more agonizing than to see your neighbor (getting richer). Early on in the development of markets there's probably some tendency to be more speculative than markets that have been around for a couple hundred years. Markets have a casino characteristic that has a lot of appeal.
"China being a newer market ... is likely to have some pretty extreme experiences."
"Fear spreads like you cannot believe. The way the public can react is really extreme ... and that offers opportunities for investors."
"Markets are there to be taken advantage of."
CHARLIE MUNGER ON BERKSHIRE'S ADVANTAGE
"I think we have one big advantage. A lot of other people are trying to be brilliant, and we're just trying to stay rational."
MUNGER ON BUFFETT
"You're a fatter version of Mahatma Gandhi."
ON WELLS FARGO, IN WHICH BERKSHIRE OWNS $27.8 BLN STAKE
"At Wells Fargo, there were three significant mistakes, but one dwarfs all of the others ... You have to be careful what you incentivize. There was an incentive system built around cross-selling ... That was incentivizing the wrong kind of behavior."
"The main problem was they didn't act when they learned about it."
ON BERKSHIRE'S EARNINGS REPORT
"The realized investment gains or losses in any period really mean nothing ... We don't really think about the timing of what we do. We do not make earnings forecasts."
"I feel very good about the first quarter even though our operating earnings were down a little bit."
ON VANGUARD FOUNDER JACK BOGLE
"It was not in the interests of Wall Street to have the development of index funds, because it brought down fees dramatically. When Jack started, very few people, certainly Wall Street did not applaud him. He was the subject of some derision. And now we're talking trillions when we get into index funds.
"Jack at a minimum has saved, in the pockets of investors, he's put tens and tens and tens of billions into their pockets. It's Jack's 88th birthday on Monday. Happy birthday, Jack and thank you on behalf of (investors)."
ON AUTONOMOUS VEHICLES
"Driverless trucks are a lot more of a threat than an opportunity to Burlington Northern."
"Autonomous vehicles, widespread, would hurt us if they spread to trucks, and they would hurt our auto insurance business. They may be a long way off. That will depend on experience in the first early months of the introduction. If they make the world safer, it will be a very good thing but it won't be a good thing for auto insurers."
(Compiled by Nick Zieminski in New York; Editing by Chris Reese)