Warren Buffett is sticking by International Business Machines Corp. (IBM).

But the Oracle of Omaha warns that his 8.59% stake in the global technology giant could turn out to be a bad decision. Defending his stance by stating that he’s lost money before, Buffett says that if he is wrong about IBM the way he has been with other misses in the past, he will sell and take a large loss (for more, read Warren Buffett's Investing Style Reviewed.)

The admission came during a high-profile interview this morning on CNBC’s Squawk Box. During the conversation, Buffett discussed a wide range of topics including negative interest rates in Europe, the health of the U.S. economy, the ongoing battle between Apple Inc. (AAPL) and the FBI, and the 2016 political election.

Here’s a breakdown of Buffett’s views on stocks during his interview on Squawk Box.

On International Business Machines (IBM)

Buffett hinted that his firm will continue to hold IBM and monitor current sales conditions.

“We own stocks and we've lost money and sometimes, when stocks go down, we're wrong when we sell them,” Buffett said. “And sometimes, we think we're right and we buy more. Sometimes a stock going down is a good thing, unless the company itself is losing value. Sometimes, that is the case. Sometimes, it isn't. I don't think that's the case with IBM, but I could be wrong.

IBM shares are off 18.5% over the last year and have fallen roughly 4% since January 1.

On Dow Chemical Co. (DOW)

Buffett’s Berkshire Hathaway Inc. (BRK.A) has owned roughly $3 billion in preferred DOW stick since 2009. Shares pay an 8.5% dividend. Should the stock price remain above $53 for another month, the company will be able to convert about 72 million preferred shares into common stock, which has been trading under $49. Should that occur, Buffett said that his firm may unwind its stake in the chemical giant.

"We bought a preferred [stock] that we liked, and we did not buy the common, and we have not bought the common ever since. There's other stocks that we would like better as a common stock," Buffett said. For more, read Think Like Warren Buffett.

On The Coca-Cola Co. (KO)

Buffett is a big fan of Coca-Cola, and not just the stock. He is notorious for consuming the beverage.

As Buffett notes, the company doesn’t have the growth expectations that it once had, but that doesn’t mean that demand isn’t robust.

“Coca-Cola continues to sell more drinks – wider portfolio than they used to have many years ago. More every year than the year before,” Buffett said. “But the growth rate in carbonated soft drinks 20 years ago was a lot greater than it is today. It's still very strong. I think they sell like 1.9 billion eight-ounce servings of some drink every day. And a lot of that is Coca-Cola.

On the Insurance Business

Buffett’s Berkshire owns some rather remarkable brands. Though he allowed Heinz to go public in a merger with Kraft Foods last year, Berkshire still owns Fruit of the Loom clothing, Benjamin Moore, Nebraska Furniture Mart, Borsheims Fine Jewelry & Gifts, NetJets, The Pampered Chef, See’s Candies, and Dairy Queen.

But none may be more high-profile these days than GEICO.

Buffett also spoke at length about the state of the insurance industry.

“Cars are safer so people are not driving as well,” Buffett said. “On top of that, what they call the severity also went up. So, as a consequence, our rates were behind experience during the year. I would guess, but this is a guess, we're a couple months into the year, I would guess that now the rates are more adequate for what the current experience is. If I had to bet and people at GEICO won't like me saying this, but I think our underwriting experience will be better in 2016 than it was in 2015.”

The Bottom Line

Warren Buffett is one of the world’s most legendary investors. Each time he speaks, traders stop to find whatever television or newspaper is in reach to get his take on the markets. For more, read Warren Buffett: How He Does It .

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