American International Group Inc (AIG), Berkshire Hathaway Inc. (BRK.B): No, Rising Rates Won’t Crush These Stocks

That’s what makes them great for investors — they think like investors. When rates rise, they won’t sit idle. Instead, they adjust, find risks that are overpriced, and write insurance to grow their underwriting and investment profits.

Rates won’t go up forever — they can fall, too — which is why it’s so important to invest in companies that don’t shift their goal with each minute uptick in interest rates. Rising rates are great for well-run insurance companies.

Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), The Chubb Corporation (NYSE:CB), and Markel Corporation (NYSE:MKL) certainly fit in the “well-run” category — they’re insurance companies you should feel comfortable holding regardless of where the 10-year Treasury yield is today, tomorrow, or 20 years from now.

The article No, Rising Rates Won’t Crush These Stocks originally appeared on Fool.com.

Fool contributor Jordan Wathen has no position in any stocks mentioned. The Motley Fool recommends American International Group (NYSE:AIG), Berkshire Hathaway, and Markel. The Motley Fool owns shares of American International Group, Berkshire Hathaway, and Markel and has the following options: long January 2014 $25 calls on American International Group. 

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