The conglomerate's operating profit — earnings from the company's wholly owned businesses — skyrocketed 71% to $14.5 billion in the fourth quarter.

Berkshire Hathaway's book value has lost some relevance; the insurance business and subsidiaries like BNSF are big factors in this consideration. See why BRK.A stock is a Hold.

Key Points ・Berkshire Hathaway reported a strong year but faced earnings declines in more than half of its subsidiaries. ・Buffett acknowledged past investment missteps but maintained confidence in long-term strategies.

Here are three ways to follow the path set out by Berkshire Hathaway and Warren Buffett in the latest letter to shareholders.

For the year, BNSF’s pretax earnings increased 0.5%, to $6.64 billion, while revenue declined 0.5%, to $23.35 billion, the railway’s corporate parent, Berkshire Hathaway, reported on Saturday.