Warren Buffett, whose economic insights are craved for Berkshire Hathaway Inc.’s deep ties to the American economy, had a gloomy prediction for his own businesses: the good times may be over.

The billionaire investor expects earnings at the majority of Berkshire’s operations to fall this year as a long-predicted downturn slows economic activity. He made his comments at the conglomerate’s annual general meeting in Omaha, Nebraska, after Berkshire posted an almost 13% gain in operating earnings to $8.07 billion for the first quarter.

“The majority of our businesses will report lower earnings this year than last year,” Buffett, 92, said, before crowds of thousands at the event on Saturday. During the last six months or so, the “incredible period” for the US economy has been coming to an end, he said.

Also Read – Warren Buffett’s annual letter to shareholders 2023: A must-read for all investors

Berkshire is often seen as a proxy for economic health owing to the expansive nature of its businesses ranging from railroad to electric utilities and retail. Buffett himself has said Berkshire owes its success to the incredible growth of the US economy over the decades, but his prediction for a slowdown at his firms comes as upheaval at regional banks threatens to curtail lending as inflation and higher rates continue to bite.

Also Read: Warren Buffett’s value investing strategy to get rich

Buffett’s long-time business partner Charlie Munger, 99, who joined him on stage, said the more-difficult economic environment will also make it harder for value investors, who typically buy stocks that look cheap compared to the intrinsic value of the businesses.

Berkshire bought back $4.4 billion of stock, an increase from the same period last year, as the investor’s sprawling firm confronted turbulent markets that offered fewer of the blockbuster deals he’s renowned for. Berkshire has turned toward buybacks more often as valuations in public markets had made it more challenging for Buffett to identify promising acquisitions.

Berkshire also topped up its cash pile, ending the quarter with roughly $130.6 billion, after finishing last year with $128.6 billion of cash on hand. The company was a net seller of equities in the quarter, pocketing $10.4 billion from stock sales after deducting purchases.

As the Federal Reserve hiked interest rates to combat inflation, Berkshire’s investment earnings rose, helping overall profit increase to $35.5 billion in the quarter. Berkshire often recommends that investors look past investment gains, which are tied to accounting rules and can be misleading to investors.

“Our investment income is going to be a lot larger this year than last year, and that’s built in,” Buffett said at the annual meeting.