Kerry, he added, "tried to emphasize his role as a Vietnam War hero and downplay his role as an anti-Vietnam War hero, which he was," said Soros. "Had he admitted, owned up to it, I think actually the outcome could have been different."

He had harsh words for the Democratic Party as well, saying he also now questions "what the Democratic Party stands for." Democrats, he advised, need to counter "a very effective conservative message machine. There really needs to be an alternative."

During the campaign Soros donated millions to the Media Fund - a group Bloomberg.com reported ran television, print and radio advertisements against Bush - and America Coming Together, a group that mobilized voters in battleground states such as Ohio and Pennsylvania. He also personally bought anti-Bush ads in newspapers around the country, and went on a 12-city speaking tour to criticize Bush's foreign policy.

Soros has no regrets about his campaign activities, insisting that the money he spent was worthwhile and that he will remain active in U.S. politics.

"I don't feel it's an investment that's gone bad, because when you stand up for principles you have to do it whether you win or lose," Soros said. "I'm distressed that Bush was re-elected, but I don't feel that I wasted my money."

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