This episode is about two key communications from Warren E. Buffett during 1970 and early 1971: a detailed annual report for Berkshire Hathaway Inc. and a separate instructive letter to his limited partners. The Berkshire Hathaway report highlights the company’s mixed 1970 performance, noting that excellent investment returns from Insurance Operations and record profits from Banking Operations offset the struggles and near break-even results of the core Textile Operations. This corporate overview also addresses new federal legislation affecting its status as a "one-bank holding company," which would require eventual divestiture of either the bank or non-banking assets. In contrast, the separate letter to the partners of Buffett Partnership, Ltd. functions as an extensive tutorial on the complexities of investing in tax-free municipal bonds. Buffett uses the letter to explain the mechanics of purchasing bearer bonds, analyze the impact of various tax laws, and strongly recommend specific long-term, non-callable bond categories, while warning against issues with poor marketability or unfair call provisions.