BERKSHIRE HATHAWAY INC.
NEWS RELEASE
FOR IMMEDIATE RELEASE AUGUST 3, 1998
 
Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for the second quarter and first half ended June 30, 1998 and 1997 are summarized below. Amounts are stated on an after-tax basis (dollar amounts are in millions except per share amounts):
 
     Second Quarter         First Half     
 
  1998    1997    1998    1997 
Earnings from operations  $ 312  $ 255  $ 564  $ 518 
Realized investment gain       864        23    1,334       44 
Net earnings
 		 $1,176
===== 		 $ 278
==== 		 $1,898
===== 		 $ 562
==== 
Average Class A equivalent shares outstanding  1,241,200  1,232,246  1,240,957  1,232,246 
Earnings per share:
  Earnings from operations  $251  $207  $ 454  $420 
  Net earnings
 		 $947
==== 		 $226
==== 		 $1,529
===== 		 $456
==== 
 
The net earnings figures for 1998 are meaningless in evaluating the Company. 1998's second quarter and first half earnings include $864 million and $1,334 million of after-tax realized investment gains compared to $23 million and $44 million in the comparable 1997 periods. While the realized gains had a material impact on Berkshire's 1998 reported earnings, they had a very minor impact on Berkshire's shareholders' equity. Berkshire records its investments at market value and most of the appreciation in the investments sold during 1998 had been previously reflected as a component of shareholders' equity in periods prior to 1998. A substantial portion of 1998's second quarter gain resulted from the sale of Berkshire's entire position in long-term zero coupon obligations of the U.S. government.

GEICO, Berkshire's largest operation, was an important contributor to increased 1998 operating earnings with an underwriting profit margin of 8% for the second quarter. GEICO's growth continued to accelerate in all categories of auto insurance -- preferred, standard and nonstandard. Voluntary policies in force, which increased by 10% in 1996 and 16% in 1997, will likely grow by more than 19% in 1998. A major expansion of GEICO's physical facilities is underway in order to support even more rapid rates of growth in the future.

Berkshire's second quarter interim report to shareholders will be posted on the Internet on August 8, 1998 where it can be accessed via www.berkshirehathaway.com.

Berkshire Hathaway and its subsidiaries engage in a number of diverse business activities among which the most important is the property and casualty insurance business conducted on both a direct and reinsurance basis. Common stock of the Company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

Certain statements that appear in this press release that do not relate to historical financial information may constitute forward-looking statements. Statements containing words such as believes, anticipates, plans, expects, projects, forecasts, estimates, may, could or similar words, are forward-looking. Any forward-looking statement is subject to various risks and uncertainties that could cause actual results to differ materially from expectations.
 
 
Contact: Marc D. Hamburg (402) 346-1400