5 Stocks That Benefit From Interest Rate Hikes

1. Berkshire Hathaway Inc. (NYSE:BRK-B)

Number of Hedge Fund Holders: 109      

Berkshire Hathaway Inc. (NYSE:BRK-B) engages in the insurance, freight rail transportation, and utility businesses. Regulatory filings show that the company has increased its stake in energy giant Occidental to more than 20% in the past few weeks. The stock has seen share price more than double this year and energy prices climb to record highs. The purchase has also fueled speculation that the company may be considering a bid for the energy giant that has a market cap of over $60 billion.

Berkshire Hathaway Inc. (NYSE:BRK-B) has benefited from the rise in interest rates because it has a large stake in the banking and insurance businesses. Rate hikes increase the earnings of these sectors overnight. 

Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Bill and Melinda Gates Foundation Trust is a leading shareholder in Berkshire Hathaway Inc. (NYSE:BRK-B), with 34.7 million shares worth more than $9.5 billion. 

In its Q1 2022 investor letter, Diamond Hill Capital , an asset management firm, highlighted a few stocks and Berkshire Hathaway Inc. (NYSE:BRK-B) was one of them. Here is what the fund said:

“Diversified holding company Berkshire Hathaway Inc. (NYSE:BRK-B) reported strong earnings during the quarter and benefited from continued share repurchases below intrinsic value. The company also announced significant deployments of excess cash during the quarter, including the acquisition of Alleghany and a large increase in its stake in Occidental Petroleum.”

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