Speaking on financial news media outlet CNBC on Friday, Warren Buffett, the Oracle of Omaha, talked about problems with some of the businesses in Berkshire Hathaway [NYSE:BRK.A].  He said that the company has been struggling as the economy is suffering from past excesses and the availability of credit.

In a comment about future economic conditions, Buffett said: "In my judgment it won't be any better five months from now."  He believes that the downturn will be longer and deeper than many people think.  He also admitted that he made a mistake when he sold his holdings in Budweiser [NYSE:BUD]; tough he did realize a strong gain on the sale, the profits would have been higher had he waited for the takeover by Belgian gain InBev.  Of course, Buffett didn't know that this acquisition was going to occur.

Separately, he urged contributors of the John Edwards campaign to file a class action suit, as the candidate misled them about his extra-marital affair.

However, Buffett doesn't expect mortgage giants Fannie Mae and Freddie Mac to fail.

"They're too big to fail." Buffett continued, "That doesn't mean that the equity can't get wiped out, and it almost has. In a practical sense, as institutions, they don't have any net worth."  Buffett added "People who own their insured mortgages or own their debt, nothing is going to happen to them. The equity and preferred stock is another question."

Buffett once held a sizeable position in Fannie Mae; however, he sold these holdings about a year ago.  During the interview, Buffett reported that he is adding to his financial holdings.  His company currently owns both American Express [NYSE:APX] and Wells Fargo [NYSE:WFC]. 

At the close of the market on Friday, Berkshire Hathaway class A shares traded at $116,100.   The company has never had a stock split.  Over the past forty-two years, the company has compounded an average annual return to shareholders of over 21%.  This return has beaten all other equity investments over the same period by a wide margin.  An investment of $1,000 in Berkshire Hathaway in 1966 would be worth $3 million dollars today.