What’s going on here?

Warren Buffett’s Berkshire Hathaway posted some strong results over the weekend.

What does this mean?

Given the breadth of its holdings, Berkshire’s results often act as a mirror of the US economy’s ups and downs. And this time around, it was a tale of two halves. On one hand, rising interest rates put a damper on its real estate businesses, and its railroad business hit a few bumps, with fewer consumer goods in transit and increased competition. But on the other hand, its insurance business raked in higher premiums and cut back on ad spending to offset that damage. The result: the firm’s highest-ever quarterly operating profit at over $10 billion. And when you factor in gains from its colossal $350 billion stock portfolio, overall profit clocked in at a whopping $36 billion.

Why should I care?

The bigger picture: Cash to splash.

Berkshire’s got a true first-world problem on its hands: lots of cash and little to spend it on. After all, market valuations are sitting pretty high these days, which has left the bargain-hunting Buffett without many attractive acquisition targets. In fact, Berkshire sold $8 billion more in stocks than it bought last quarter, leaving the firm with a whopping $147 billion in cash and short-term investments – just a hair’s breadth away from its all-time record of $149 billion. Mind you, with interest rates so high, that pile of cash isn’t just gathering dust: most of it’s invested in US Treasury bonds, which Buffett reckons could rake in $5 billion a year.

For you personally: Watch and learn.

There are a few nuggets of wisdom on offer here. First, Berkshire’s steady performance amid market turbulence underscores the importance of diversification. Second, Buffett’s cautious stance is a potential reminder to tread carefully amid the recent stock rally. And finally, if you’re sitting on cash, then don’t miss out on the high interest rates currently on offer.

What’s going on here?

Oil titan Saudi Aramco saw profit slipping and sliding last quarter.

What does this mean?

Oil companies have been having a tough time of it this earnings season, and the world’s biggest oil and gas company was no different. See, OPEC+ – a group of oil-producing nations – has been trying to limit supply and bolster prices since late last year, but with the specter of a global slowdown looming, there was only so much it could do. In fact, the average price of a barrel took a 32% tumble versus the same period last year, so it was no surprise when Aramco’s profit slid by 38%, to just over $30 billion. But it wasn’t all bad news: that number was still ahead of expectations, and the firm upped payouts by a decent chunk to keep investors onside. And that – surprise, surprise – meant shares rose after the news.

Why should I care?

The bigger picture: Fueling a nation.

To truly grasp the scale of Aramco, consider this: that $30 billion profit was still more than the combined earnings of Shell, BP, Exxon, Chevron, and TotalEnergies last quarter. Such heft is necessary when you’re the backbone of a nation. After all, the Saudi Arabian government is the firm’s biggest shareholder, and those payouts are essentially a lifeline to the pretty pinched state coffers. So Aramco boosting its payouts isn’t just about keeping investors happy. It’s a calculated strategy to bolster the nation’s ongoing diversification away from oil, including ventures into mining metals essential to the decarbonization movement.

Zooming out: They’ve got chemistry.

China is Aramco's biggest oil customer, and the Saudi titan is expecting the world's second-biggest economy to continue to up its demand this year. But Aramco isn’t just thinking about the slippery elixir: the company confirmed it’s planning to build on its investments in the country's fast-growing chemicals sector too, further expanding its footprint there.