Buffett’s firm defends valuation of 5 stocks

By Associated Press
Posted March 28 at 10:48 a.m.

Warren Buffett’s company offered a strong endorsement of five stocks it holds as part of discussions with regulators about how it should value Kraft Foods, Wells Fargo & Co., Sanofi Aventis, Swiss Re and US Bancorp.

Buffett’s Berkshire Hathaway filed copies Monday of letters it had exchanged with the Securities and Exchange Commission over the past several months.

Berkshire ultimately agreed to record an impairment of the value of its holdings in drugmaker Sanofi Aventis, reinsurance firm Swiss Re and banking company US Bancorp at the end of 2010. But it didn’t write down the values of Kraft and Wells Fargo.

Berkshire officials told regulators on Jan. 11 that they remain confident all five stocks were trading at levels below their true value, and the market price will eventually reflect that.

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