Big tech companies have had a rough start to the year, but banks, energy firms and other value stocks have rallied—good news for Warren Buffett and Berkshire Hathaway, reports CNN. He’s long invested in these types of companies, and has championed value stocks even when they’re not trending.

That approach has Berkshire Hathaway’s shares up about 3% this year so far—close to a record high. And many of the financial firms that make up a good deal of BH’s portfolio—Bank of America, American Express, US Bancorp—have all started the year off strong, as well as Chevron, Buffett’s 12-largest holding.

In contrast, the FAANGs, Microsoft and Tesla are all down significantly, the article maintains.

It’s further proof that while Buffett’s methods may not be flashy and trendy, his patient approach and ability to stay calm during periods of volatility is still a valuable method. Of course, BH hasn’t escaped the Nasdaq meltdown unscathed—its largest holding is Apple (down 5%) and has a small stake in Amazon. But many investors, expecting the Fed to raise interest rates any day now, have gobbled up financial stocks. And as the largest holding in the Financial Select Sector SPDR ETF, Berkshire Hathaway has benefitted from that.

A Fed rate hike is widely expected to come in March, and U.S. investors are watching other central banks, such as the Bank of England, which raised rates from zero in December and is expected to jack them up 0.5%. It’s predicted that many other central banks will follow suit, except for the European Central Bank whose president, Christine Lagarde, has taken a dovish view and indicated that the ECB isn’t likely to raise rates amidst ongoing pandemic challenges, the article concludes.

That approach has Berkshire Hathaway’s shares up about 3% this year so far—close to a record high. And many of the financial firms that make up a good deal of BH’s portfolio—Bank of America, American Express, US Bancorp—have all started the year off strong, as well as Chevron, Buffett’s 12-largest holding.

In contrast, the FAANGs, Microsoft and Tesla are all down significantly, the article maintains.

It’s further proof that while Buffett’s methods may not be flashy and trendy, his patient approach and ability to stay calm during periods of volatility is still a valuable method. Of course, BH hasn’t escaped the Nasdaq meltdown unscathed—its largest holding is Apple (down 5%) and has a small stake in Amazon. But many investors, expecting the Fed to raise interest rates any day now, have gobbled up financial stocks. And as the largest holding in the Financial Select Sector SPDR ETF, Berkshire Hathaway has benefitted from that.

A Fed rate hike is widely expected to come in March, and U.S. investors are watching other central banks, such as the Bank of England, which raised rates from zero in December and is expected to jack them up 0.5%. It’s predicted that many other central banks will follow suit, except for the European Central Bank whose president, Christine Lagarde, has taken a dovish view and indicated that the ECB isn’t likely to raise rates amidst ongoing pandemic challenges, the article concludes.