Buffett's Most Intriguing Quotes Explained

NEW YORK (TheStreet) -- In his annual letter to Berkshire Hathaway's(BRK.A) shareholders, Warren Buffett revealed that the company has lined up his successor as CEO, even if retirement is still a long way off.

Buffett also outlined why he thinks Berkshire can profit from its recent IBM(IBM) investment even if the tech giant's shares don't appreciate in the next five years.

The so-called Oracle of Omaha also praised bank executives like Jamie Dimon of JPMorgan(JPM) and Brian Moynihan of Bank of America(BAC) .

Warren Buffett

Here's a look at the most memorable quotes of the letter.

"Your Board is equally enthusiastic about my successor as CEO, an individual to whom they have had a great deal of exposure and whose managerial and human qualities they admire. (We have two superb back-up candidates as well.)"

Buffett indicated that Berkshire's board has found a successor CEO, without naming who it is. In the meantime, he continued to praise newly hired investment managers Todd Combs and Ted Weschler, who will both manage billion-dollar-plus sized portfolios in 2012. But don't expect Buffett, 81, or his investing partner Charlie Munger, 88, to quit Berkshire anytime soon.

"Do not, however, infer from this discussion that Charlie and I are going anywhere; we continue to be in excellent health, and we love what we do."

> > Bull or Bear? Vote in Our Poll

"We made few changes in our investment holdings during 2011. But three moves were important: our purchases of IBM and Bank of America and the $1 billion addition we made to our Wells Fargo position."