Earlier in his career, he did that mostly by investing premiums from insurance units in stocks. More recently, he’s built up value by buying whole companies. Berkshire’s sprawling operations now include dozens of businesses from electric utilities and trucking operations to fast-food chain Dairy Queen and confectioner See’s Candies.

Some of the biggest businesses in that portfolio have struggled. After steadily adding customers for years, Geico’s underwriting profit has suffered amid an industrywide increase in the frequency and severity of car accidents. The insurer has had to raise premiums to compensate.

“They’ve been emphasizing growth,” said Shields. “Sometimes that comes with profitability challenges.”

BNSF, the largest non-insurance unit, plans to spend a record $6 billion this year on maintenance and upgrades to its network. One of its projects-- a second, parallel line on its Los Angeles-to-Chicago route -- could boost shipments of consumer products, helping the railroad deal with a slowdown in coal volumes.


Smaller Victories


Apart from the Kraft Heinz investment, Buffett has had a few smaller wins in the stock portfolio. He cut his holding in Munich Re, the world’s largest reinsurer, at a profit. Berkshire is also poised to gain from its 17 percent stake in Symetra Financial Corp., which is being acquired for $3.7 billion.

Buffett is counting on benefits from his planned takeover of Precision Castparts Corp., which makes complex metal components for the aerospace and energy industries. The deal ranks among Buffett’s largest and will add to his conglomerate’s diverse sources of earnings.

“Companies have a way of growing and doing better under Berkshire’s wing,” said James Armstrong, who oversees about $550 million including shares of Buffett’s company as president of Henry H. Armstrong Associates. Precision Castparts’ CEO has shown an ability to make acquisitions and should be able to build the business over time because he won’t have to deal with pressure from Wall Street, Armstrong said.


Oil’s Impact


Prior to the takeover announcement, Precision Castparts stock had slumped because falling oil prices hurt sales to the energy industry. The manufacturer’s profit plunged 27 percent to $343 million in the three months ended Sept. 27, compared with the year-earlier period.