> Warren Buffett Blog: Warren Buffett could win big if Fed raises rates

Thursday, June 11, 2015

Warren Buffett could win big if Fed raises rates

A rising interest rate environment could benefit Warren Buffett and he is probably hoping the Federal Reserve starts raising interest rates sooner. The famed billionaire investor's investment vehicle, Berkshire Hathaway has 44.8% of its portfolio invested in the financial sector, according to FactSet. 

Financial stocks tend to benefit in a rising rate environment, because they can make more money on the spread between the interest they earn on assets and the interest they pay on liabilities.