Warren Buffett identified four businesses as “jewels” in Berkshire Hathaway’s holdings, including Apple, insurance, energy, and railways. Berkshire’s shares have increased by 40% in the last five years due to the success of these businesses. Buffett revealed that most of Berkshire’s value is in these four “jewels.”

Berkshire Hathaway’s insurance business has a significant advantage, allowing it to invest insurance premiums and keep the returns. In 2020, it had $138 billion in floating capital to invest in stocks or bonds. This “jewel” continues to generate profits for Berkshire Hathaway, even as Buffett prepares to step down in January.

Berkshire Hathaway Energy (BHE) has shown steady growth, with earnings increasing from $122 million to $3.73 billion in recent years. BHE, a utility business controlled by Berkshire, has been a valuable asset, providing consistent returns for the conglomerate.

BNSF, America’s largest railroad, has been a strong asset for Berkshire Hathaway, generating over $5 billion in earnings last year. Despite being capital-intensive, BNSF has paid dividends to Berkshire, and Buffett believes it will remain a major asset for the company in the future.

Read more at Yahoo Finance: Buffett Calls These 4 Businesses Making Up Most of Berkshire Hathaway “Jewels”