Buffett's Berkshire Positioned to Benefit from Rate Jump and Recession

. He estimated the conglomerate could rake in close to $8 billion annually from short-dated Treasuries, as higher interest rates have boosted yields.

"Given the firm's fortress balance sheet and consistent free cashflow, it's a buyer of discounted assets in times of trouble," he said."We don't see that changing in the next recession, whenever it comes." Berkshire reported lower revenues and earnings across many of its consumer-facing businesses last quarter. Given the wide scale and scope of Berkshire's subsidiaries, thatThe veteran investor noted that Berkshire's hardest-hit business was Forest River. While steeper borrowing costs weighed on sales of recreational vehicles, demand might also be normalizing after skyrocketing during the pandemic, he said.

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