Investors are rotating into Berkshire Hathaway as shelter from the AI-driven market turmoil, after the conglomerate's shares had lagged the broader market since Warren Buffett announced his departure as CEO last year.

Berkshire's class B stock has climbed 13.6% so far this year, outpacing the S&P 500's 7.8% gain. The outperformance has come as Wall Street pulls out of once high-flying tech stocks that rode the AI boom. Since Oct. 1 alone, Berkshire stock has soared 14%, while the S&P 500 has fallen about 4%. The shelter appeal traces to where Berkshire makes its money: its earnings are anchored in railroads, energy, manufacturing and consumer brands rather than in the technology stocks at the center of the selloff.

The pattern mirrors other years marked by major market upheaval. Most recently, Berkshire gained 4% in 2022, when the Federal Reserve's aggressive rate-hiking campaign sent the broad market index down 18%.

Even so, Berkshire's closely followed equity portfolio has not been immune to recent market swings. According to its third-quarter earnings report, filed on Saturday, investment gains plunged 46% from a year earlier to $9.4 billion.

Berkshire's top stock holdings remained Alphabet, American Express, Apple, Bank of America and Coca-Cola during the quarter. While a more detailed filing later this month will reveal its precise moves, the quarterly earnings report showed that Berkshire bought $2.4 billion of stocks during the period and sold roughly $2.8 billion worth. The company grew its stake in “commercial, industrial, and other” equities by $2.3 billion on a cost basis, and cut its stake in “banks, insurance and finance” by $400 million.

Meanwhile, CEO Greg Abel, who took over from Buffett at the start of this year, has continued to draw down Berkshire's massive cash pile and accelerated share repurchases. The company bought back $9.6 billion of its own stock in the third quarter — more than double the pace of the second quarter — and repurchased about $2 billion more in the first four weeks of the fourth quarter.

With a broad array of firms under its umbrella, the conglomerate remains anchored in traditional businesses, including the BNSF railroad, Brooks running shoes, See's candies and Forest River RVs. Abel extended that strategy in July, when he agreed to acquire home builder Taylor Morrison for $6.8 billion — a deal that broke a long drought without major acquisitions, during which Buffett bemoaned the lack of good bargains.

Berkshire's bets on the traditional economy have paid off. In the third quarter, its railroad, energy and manufacturing businesses delivered strong profits, though insurance underwriting tumbled. That comes as the AI boom has not only supercharged the tech sector, but also industries that benefit from the hundreds of billions of dollars being spent on data center construction and electrical grid upgrades. As a result, U.S. GDP has been running hot, expanding 3.4% in the third quarter after growing 2.2% in the second.

However, the Democratic sweep of gubernatorial races in data center hot spots such as Texas, Ohio and Georgia is expected to slow the AI buildout and the broader economy.

This story was originally featured on Fortune.com.