The Four Core Pillars Buffett Calls Berkshire's "Jewels" — And Why They're Worth $64.8 Billion Combined

In his 2020 shareholder letter, Warren Buffett identified four businesses within Berkshire Hathaway that he referred to as “jewels” — the crown jewels of one of history’s most successful investment vehicles. Five years have passed since then, and Berkshire Hathaway’s stock has climbed 40%, bringing cumulative returns since 1965 to a staggering 5,502,284%. These four core holdings remain instrumental to that performance.

Why Berkshire’s “Jewels” Matter Now More Than Ever

The conglomerate’s $171 billion in insurance float, $64.8 billion in Apple holdings, $3.73 billion in annual earnings from Berkshire Hathaway Energy, and over $5 billion in BNSF Railway income collectively represent the engine driving Berkshire’s long-term value creation. As leadership transitions approach, understanding what makes these four businesses special becomes critical for investors.

Apple: The Profit Machine Generating Over $100 Billion

Berkshire’s position in Apple represents its largest single equity holding at 20.7% of total assets. From a $40 billion investment, the company has generated over $100 billion in profits — a return that explains why Buffett once called it “probably the best business I know in the world.”

However, since 2023, Buffett has been systematically reducing this position, offloading approximately 70% of Berkshire’s stake. He attributed this reduction to tax optimization strategy in 2024. Despite the selling, Apple remains at $64.8 billion in market value as of the most recent quarter, demonstrating the magnitude of this jewel within Berkshire’s portfolio.

Insurance Float: The $171 Billion Secret Weapon

Berkshire’s property and casualty insurance operation represents one of Wall Street’s least understood competitive advantages. By collecting premiums upfront, the company gains access to billions in “float” — capital that can be deployed into stocks, bonds, or other investments while awaiting claims payouts.

The numbers are remarkable. In 2020, Berkshire’s insurance float stood at $138 billion. By 2025, it had grown to $171 billion — representing an additional $33 billion in investment capital derived from other people’s money. This year alone, the insurance underwriting business generated $9 billion in operating earnings, nearly double the $5.4 billion from 2023. The float itself contributed $13.6 billion in operating earnings, a significant jump from $9.5 billion the previous year.

For context, Berkshire generated $32 billion in after-tax profits from its insurance operations by 2025, creating a business model where the company retains 100% of investment returns rather than the typical 20% fee structure found in the hedge fund industry.

Berkshire Hathaway Energy: From $122 Million to $3.73 Billion

Controlling 91% of Berkshire Hathaway Energy (BHE), Buffett oversees what he describes as “a very unusual utility business.” When Berkshire acquired the company in 1990, annual earnings stood at just $122 million. By 2020, that figure had grown to $3.4 billion. Last year, BHE generated $3.73 billion in earnings, representing roughly a 10% increase over four years.

More impressively, a single year’s earnings are now nearly 3,000% of what Berkshire originally paid for the utility business that became BHE — demonstrating the long-term compounding power of patient capital in infrastructure assets.

Operating earnings from BHE surged 60% in 2024, suggesting renewed momentum in this jewel of the portfolio.

BNSF Railway: The $41.8 Billion Dividend Machine

America’s largest railroad by freight volume joined Berkshire in 2010 when the company paid approximately $34 billion for the acquisition. By 2020, BNSF had already returned $41.8 billion in dividends — meaning the investment had paid for itself entirely while remaining a productive operating asset.

Last year, BNSF generated just over $5 billion in earnings. Remarkably, the railway maintains financial discipline by paying dividends only after funding all business requirements and maintaining a $2 billion cash balance that enables low-cost borrowing without Berkshire’s personal guarantee.

In 2023, Buffett predicted: “A century from now, BNSF will continue to be a major asset of the country and of Berkshire. You can count on that.” While the business is intentionally capital-intensive and thus unlikely to produce outsized returns, its steady cash generation makes it a reliable long-term holder.

The Four Jewels: Still Delivering Results

Despite trimming Apple, Berkshire’s remaining 238 million shares in that company generate $62 million in dividends each quarter. BNSF’s already-repaid investment continues producing billions annually. BHE’s 60% earnings growth in 2024 signals renewed vigor. And the insurance operation’s float and underwriting profits have expanded dramatically year-over-year.

The consensus is clear: these four jewels continue delivering for Berkshire Hathaway. As Warren Buffett steps down as Chairman and CEO, the structural strength of these core businesses provides continuity and confidence that Berkshire’s growth trajectory will persist beyond his tenure.