Buffett Defends, Regrets & Explains Many Positions (BRK-A, BRK-B, GE, JNJ, KO, TIF, AIB, IRE, WFC, COP)

Warren Buffett has been a much more reserved lately, although not as much as the recent performance might dictate. In the latest Berkshire Hathaway Inc. (NYSE: BRK-A) annual report, he sounded like a former boxing champion who staged a comeback and was beaten silly.  This morning, Buffett spoke with CNBC’s Becky Quick and answered reader emails.  What is interesting is that Buffett still defends most of the transactions he has made recently, even if he said he wished he did a few differently.

In last year’s General Electric Co. (NYSE: GE) funding purchase, Buffett said he actually made a sale of Johnson & Johnson (NYSE: JNJ) to bring in funds to offset the expense of that investment.  What is interesting is that Buffett said he did not want to sell J&J.

The Coca-Cola Company (NYSE: KO) is a longtime large position for the Oracle of Omaha.  He spoke to CNBC about the company’s 100-year operating history and said its sodas were the best.  It didn’t sound like his praise at Coke was fleeting.

He defended his recent investment in Tiffany & Co. (NYSE: TIF),  noting that he again bought debt and is not a common holder.  But he said that he is very confident that Tiffany will be able to pay him back.  He even used the analogy of “taking home a blue box and getting a kiss doesn’t go away.”  He did note the current sea change in the retail sector with everything being sold at the low-end right now.

Buffett took a pretty big hit and closed out positions in the Irish banks.  This was likely in Allied Irish Banks plc (NYSE: AIB) or maybe The Governor and Company of The Bank of Ireland (NYSE: IRE).  Here Buffett said he just didn’t do enough due diligence and got burned for it.

Wells Fargo & Company (NYSE: WFC) is another huge position for Buffett and Berkshire.  This one has been crushed with the market and with the woes in the sector.  But Buffett argued that the banking operation that will be very profitable.  Of course, Buffett did hold the line on long-term banking profitability.  He also sounds like he is not going anywhere close to throwing in the towel.  One note of caution is that Buffett did note that he is worried that the government could dilute shareholders in the banking system.

On ConocoPhillips (NYSE: COP), Buffett noted how his bet was wrong there.  He did, after all, make that investment in the oil giant when oil was north of $100 per barrel.  This stock has fallen close to two-thirds from its highs.

This is a mere snapshot of what Warren Buffett discussed this morning.  He talked more about taxes, politics, advising the White House, the past, the future, and more.  But sometimes to get real insight on a portfolio and a long-term buy and hold forever strategy you have to start inside and work your way out.  He talked of coming problems with municipal bonds and noted how we were on the brink of collapse in September, but in the end you know Warren is bullish on the long-term prospects of America.

JON C. OGG