On Saturday, the Omaha based conglomerate, Berkshire Hathaway, reported some of its highest numbers in terms of both cash and operating income. With a massive increase in their Q2 cash account, Warren Buffet’s cash pile has grown to nearly $150 Bn and a YoY 6.6% growth in operating revenue (EBIT). The company’s unprecedented growth has also yielded a $36 Bn in net profit for the company based on both rising interest rates — warranting higher premiums — as well as cuts in ad costs.

This rally was offset by Clayton Homes, also owned by Berkshire Hathaway, which took a 34% hit due to the current inflated cost of building materials. Profits also fell at one of Berkshire’s largest businesses, the BNSF railroad, with a 24% decline reflecting lower shipments of consumer goods, price competition, and higher labor costs.

Berkshire also appeared to remain wary of high stock prices as U.S. equities extended their rally.

During the second quarter it sold $8 Bn more stocks than it bought and repurchased less of its own stock. Berkshire ended June with a near-record $147.4 Bn cash balance, an overall 38% increase in earnings.

Although the higher interest rates helped boost investment income, they also contributed to a broader economic slowdown. Berkshire’s cautious approach to equities suggests that Buffett may be preparing for a potential economic downturn or “soft landing” — a scenario where economic growth slows without entering a full-blown recession.

Buffett’s 5.8% stake in Apple (AAPL) continues to be the backbone of Berkshire’s equity portfolio. Apple has been a leader of this year’s market rally, surging 50% in the first half of the year. That’s added $26.6 Bn to Buffett’s stake, which at the end of the quarter totaled $177.6 Bn and made up 50% of Berkshire’s equity investments.

The year-over-year increase in operating earnings to $10.043 Bn in Q2 2023, up from $9.417 Bn in Q2 2022, highlights the company’s staying-power despite economic downturn, particularly in its insurance segment.