In an interview this week with Good Morning America Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, said that Americans had been on "a binge" prior to the recession. The Oracle of Omaha also gave some broad, but characteristically wise, advice for investing in this new era.
For one, Buffett said, debt can be a killer:
"The U.S. public as a whole has gotten into problems from leverage, financial institutions have gotten into problems through leverage," he said. "A long, long time ago a friend said to me about leverage, 'If you're smart you don't need it, and if you're dumb, you got no business using it.'"
For more of Warren Buffett's investment tips, WATCH: