“We’re on the side of the latter and still expect a recession will happen this year, given the sheer pace of policy tightening by the Federal Reserve,” focuses on investing in businesses with durable, identifiable competitive advantages which generally enables them to produce free cash flow, without a lot of leverage, in almost any environment including a period of recession.

“Our intrinsic value estimates may grow more slowly during a recession, but they should remain stable,” he said. “Our companies may even emerge more competitively entrenched through a downturn because they tend to have a strong connection with their customer, deep financial resources, and management teams who allocate capital well while their competitors often are not so fortunate,” he added.