That conclusion is further supported by the fact that Berkshire had $277 billion in cash and U.S. Treasuries on its balance sheet as of the June quarter, another record for the company. Finally, Buffett repurchased a mere $345 million in Berkshire stock during the June quarter, which marks his smallest allocation to stock buybacks in six years.

But critics are warning that stock prices look too expensive given how much faster they’ve climbed than corporate profits. David Lefkowitz, head of U.S. equities at UBS Global Wealth Management, sees both sides.