Buffett's 'great time to be in banking' could be this quarter

Warren Buffett lost billions for Berkshire Hathaway (BRK.A), making big bets with Goldman Sachs (GS), American Express (AXP) and Wells Fargo (WFC) just before financial stocks plummeted. But about a month ago, he told listeners on CNBC that "This is a great time to be in banking." Many scorned him when he said it.

Well, he could prove to be the sage of Omaha once again as banks report their first quarter earnings in the next few weeks. Wells Fargo, one of Buffett's holdings, announced yesterday that it would report a record $3 billion in earnings for the first quarter. It's stock shut up 31.7 percent in one day. That one announcement increased Buffett's portfolio by $1.4 billion in just 24 hours and his portfolio is now worth $3.2 billion more than a month ago.