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Today’s Headline

Berkshire Could See $3 Billion Hit to Interest Income If Fed Slashes Rates in Next Year

When I first read that Berkshire Hathaway might take a $3 billion hit to its interest income if the Federal Reserve cuts rates, my first reaction was, “Wow, that’s a big number.” But after looking deeper, I realized there’s a lot more to the story than just a scary headline. Berkshire, Warren Buffett’s giant holding company, is built to handle storms like this. Still, there are lessons here for us as everyday investors.

Let’s break this down step by step and talk about what it means, not just for Berkshire, but also for anyone who’s trying to grow and protect their money in a changing interest rate world.