HIGHLIGHTS-Buffett, 'Oracle of Omaha,' comments on China

(Adds comments on China, Precision Castparts)

NEW YORK, May 5 (Reuters) - Billionaire investor Warren Buffett and Berkshire Hathaway Inc Vice Chairman Charlie Munger are answering five hours of questions from shareholders, journalists and analysts at Berkshires annual meeting in Omaha, Nebraska.

The weekend known as Woodstock for Capitalists is unique in corporate America, a celebration of Buffett's success at a conglomerate whose businesses range from Geico insurance to the BNSF railroad to Sees candies to Ginsu knives.

Below are the comments from Buffett, the Oracle of Omaha, on a wide range of topics, which will be updated throughout the day:

ON CHINA-U.S. TRADE

"In August, I will be 88, in a year that ends in an 8. Eight is a lucky number in china. ... The United States and China are going to be the two super-powers of the world, economically and in other ways for a long long time. We have a lot of common interests and like any two big economic entities there are times when there will be tensions. But it is a win-win situation when the world trades."

"Both Democrats and Republicans basically, on balance, believe in the benefits of free trade ... it's just too big and too obvious that the benefits are huge and the world is dependent on it ... we both may do things that are mildly foolish from time to time ... It's really not the worst thing in the world (to run a trade deficit)."

ON PRECISION CASTPARTS

"It's a very, very good business. Manufacturers are very dependent on both the quality of the parts and the promptness of the delivery. Reliability ... is enormously important. (Our) contracts extend out many years ... it's an acquisition with very long tails. Mark Donegan is a fabulous manager, I wouldnt have bought it without him in charge its got very long tails to the products that are being developed.""

ON INVESTING LONG-TERM

"The overriding question is how is American business going to do over your lifetime?"

ON BERKSHIRE EARNINGS

"A new accounting rule was introduced at the beginning of this year and it provides that our equity securities - whether we sold them or not - are marked to market every day so we can have a gain or loss of a couple of billions of dollars in our equity securities portfolios ... that (produces) some very unusual effects from quarter to quarter ... (the net earnings figure) really is not representative of whats going on in the business at all."

ON CHARLIE MUNGER

"Charlie does most things better than I do."

MUNGER ON BUFFETT BEING 'SEMI-RETIRED'

He sits around reading most of the time and thinking, and every once in a while he talks on the phone. I cant see any difference Warren is very good at doing nothing."

(Reporting By Nick Zieminski in New York, Trevor Hunnicut and Jonathan Stempel in Omaha)