Berkshire Hathaway uses its "operating earnings," which exclude the capital gains or losses from its investment portfolio, to measure its bottom-line growth instead of its net income on a generally accepted accounting principles ( GAAP) basis. Buffett says that proprietary metric tunes out the near-term noise from the stocks in its portfolio.

Berkshire Hathaway is set for success with defensive strategies, rising profits, and a strong cash position. Read more on BRK.A stock here.