BERKSHIRE HATHAWAY INC.

COMBINED FINANCIAL STATEMENTS

BUSINESS GROUPS



Berkshire's consolidated data is rearranged in the presentations on the 
following six pages into four categories, corresponding to the way Mr. 
Buffett and Mr. Munger think about Berkshire's businesses. The 
presentations may be helpful to readers in making estimates of 
Berkshire's intrinsic value.
The presentations in this section do not conform in all respects to 
generally accepted accounting principles. Principal departures from GAAP 
relate to accounting treatment for assets acquired in business 
acquisitions, although students and practitioners of accounting will 
recognize others.

Opinions of Berkshire's independent auditors were not solicited for this 
data. The four-category presentations in no way fell within their 
purview.


BERKSHIRE HATHAWAY INC.

INSURANCE GROUP



     Berkshire's insurance businesses are comprised of three operating 
groups of subsidiaries. The largest group (in terms of premium volume) is 
GEICO Corporation ("GEICO") whose business was merged with another 
Berkshire subsidiary at the beginning of 1996. Prior to that date, 
Berkshire subsidiaries owned approximately 51% of the then outstanding 
capital stock of GEICO. GEICO, through its subsidiaries, is a multiple 
line property and casualty insurer the principal business of which is 
writing private passenger automobile insurance. Currently the seventh 
largest auto insurer in the U.S., GEICO's voluntary auto policy count 
grew 10% during the twelve months ended December 31, 1996. At the same 
time, outstanding underwriting results continued to be generated.

     The Berkshire Hathaway Reinsurance Division provides treaty and 
limited facultative reinsurance to other property/casualty insurers and 
reinsurers. Berkshire is one of the world's leading providers of 
catastrophe excess of loss reinsurance. Berkshire's unparalled capital 
strength has enabled it to offer dollar coverages of a magnitude far in 
excess of its competitors.

     Berkshire's third group of businesses underwrite miscellaneous forms 
of direct insurance. National Indemnity Company and other affiliated 
entities underwrite multiple lines of traditional insurance for primarily 
commercial accounts. The "Homestate Group" companies underwrite various 
commercial coverages for risks in an increasing number of selected 
states. Cypress Insurance Company provides workers' compensation 
insurance to employers in California and more recently in six other 
states. Central States Indemnity Company issues credit insurance 
distributed through credit card issuers nationwide  In addition, in mid-
1996, Kansas Bankers Surety Company, an insurer for primarily small and 
medium sized banks located in the midwest, was acquired by a Berkshire 
subsidiary.

     The Berkshire Hathaway Insurance Group maintains capital strength at 
unparalleled high levels. Statutory surplus as regards policyholders of 
the Insurance Group increased to about $26 billion at December 31, 1996. 
The obvious margins of safety thus provided to insureds of the Group are 
particularly persuasive in marketing of individually negotiated insurance 
and reinsurance contracts.

     Combined financial statements of the Insurance Group - unaudited and 
not fully adjusted to conform to Generally Accepted Accounting Principles -
are presented on the following page.


BERKSHIRE HATHAWAY INC.

INSURANCE GROUP

                           Balance Sheets
                        (dollars in millions)

                                                      December 31,
                                                ------------------------
                                                   1996          1995
                                                ----------    ----------
Assets
  Investments:
    Fixed maturities at market . . . . . . . .   $ 5,462.4     $ 1,368.5 
    Equity securities at market:
      American Express Company . . . . . . . .     2,731.8       2,000.5 
      Capital Cities/ABC, Inc. . . . . . . . .        --         2,405.8 
      The Coca-Cola Company. . . . . . . . . .    10,499.7       7,407.2 
      The Walt Disney Company. . . . . . . . .     1,680.2          --   
      Federal Home Loan Mortgage Corporation .     1,772.8       1,044.0 
      GEICO Corporation. . . . . . . . . . . .        --         2,393.2 
      The Gillette Company . . . . . . . . . .     3,732.0       2,502.0 
      McDonalds Corporation. . . . . . . . . .     1,356.2         504.9 
      Wells Fargo & Company. . . . . . . . . .     1,916.8       1,426.8 
      Other. . . . . . . . . . . . . . . . . .     3,862.1       2,363.4 
                                                 ---------     ---------
                                                  33,014.0      23,416.3 
  Cash and cash equivalents. . . . . . . . . .       513.7       2,328.9 
  Deferred costs . . . . . . . . . . . . . . .       437.5         410.6 
  Other. . . . . . . . . . . . . . . . . . . .     1,022.0         314.5 
                                                 ---------     ---------
                                                 $34,987.2     $26,470.3 
                                                 =========     =========

Liabilities
  Losses and loss adjustment expenses. . . . .   $ 6,274.4     $ 3,698.6 
  Unearned premiums. . . . . . . . . . . . . .     1,183.5         374.1 
  Funds held under reinsurance assumed . . . .       449.6         379.0 
  Policyholder liabilities and other accruals        802.0         238.9 
  Income taxes, principally deferred . . . . .     6,611.8       5,483.3 
                                                 ---------     ---------
                                                  15,321.3      10,173.9
                                                 ---------     --------- 

Equity
  Minority shareholders' . . . . . . . . . . .       258.1         196.4 
  Berkshire shareholders'. . . . . . . . . . .    19,407.8      16,100.0 
                                                 ---------     ---------
                                                  19,665.9      16,296.4 
                                                 ---------     ---------
                                                 $34,987.2     $26,470.3 
                                                 =========     =========


                       Statements of Earnings
                        (dollars in millions)

                                          1996        1995        1994
                                        --------    --------    --------
Premiums written . . . . . . . . . . .  $4,105.2    $1,024.2    $  915.5 
                                        ========    ========    ========
Premiums earned. . . . . . . . . . . .  $4,117.8    $  957.5    $  923.2
                                        --------    --------    -------- 
Losses and loss expenses . . . . . . .   3,089.5       612.0       565.3 
Underwriting expenses. . . . . . . . .     806.2       325.0       228.0 
                                        --------    --------    --------
  Total losses and expenses. . . . . .   3,895.7       937.0       793.3 
                                        --------    --------    --------
  Underwriting gain - pre-tax. . . . .     222.1        20.5       129.9 
Net investment income* . . . . . . . .     726.2       501.6       419.4 
Realized investment gain . . . . . . .   2,289.8       181.1        92.0 
Other-than-temporary decline 
  in value of investment in 
  USAir Group, Inc. Preferred Stock. .      --          --        (261.0)
                                        --------    --------    --------
Earnings before income taxes . . . . .   3,238.1       703.2       380.3 
Income tax expense . . . . . . . . . .   1,006.6       149.0        51.7 
                                        --------    --------    --------
                                         2,231.5       554.2       328.6 
Minority interest. . . . . . . . . . .       7.6         7.5         4.3
                                        --------    --------    -------- 
Net earnings . . . . . . . . . . . . .  $2,223.9    $  546.7    $  324.3 
                                        ========    ========    ========

*Net investment income is summarized below:
   Dividends . . . . . . . . . . . . .    $418.4      $385.0      $362.4 
   Interest. . . . . . . . . . . . . .     321.9        99.6        92.2 
   Equity in unremitted net 
     earnings (loss) of Salomon Inc. .      --          18.3       (31.7)
   Investment expenses . . . . . . . .     (14.1)       (1.3)       (3.5)
                                         --------    --------    --------
                                          $726.2      $501.6      $419.4 
                                         ========    ========    ========


These statements do not conform to GAAP in all respects
These statements are unaudited


BERKSHIRE HATHAWAY INC.

MANUFACTURING, PUBLISHING AND RETAILING BUSINESSES


     Combined financial statements of Berkshire's Manufacturing, Publishing 
and Retailing businesses - unaudited and not fully adjusted to conform to 
Generally Accepted Accounting Principles - are presented on the following 
page. The operations whose data have been combined in these presentations 
include the following:

   Operation                    Product/Service/Activity

   Adalet - PLM                 Explosion proof electrical enclosures, 
                                 cable couplers and terminations

   Blue Chip Stamps             Marketing motivational services

   Borsheim's                   Retailing fine jewelry

   Buffalo News                 Daily and Sunday newspaper

   Campbell Hausfeld            Air compressors, air tools, painting 
                                 systems, pressure washers, welders and 
                                 generators

   Carefree                     Comfort and convenience products for the 
                                 recreational vehicle industry

   Cleveland Wood Products      Vacuum cleaner brushes and bags

   Dexter Shoe Companies        Dress, casual and athletic shoes

   Douglas Products             Specialty and cordless vacuum cleaners

   Fechheimer Bros. Co.         Uniforms and accessories

   FlightSafety                 High technology training to operators of 
                                 aircraft and ships

   France                       Appliance controls; ignition and sign 
                                 transformers

   H. H. Brown Shoe Co.         Work shoes, boots and casual footwear

   Halex                        Zinc die cast conduit fittings and other 
                                 electrical construction materials

   Helzberg's Diamond Shops     Retailing fine jewelry

   Kirby                        Home cleaning systems

   Lowell Shoe, Inc.            Women's and nurses' shoes

   Meriam                       Pressure and flow measurement devices

   Nebraska Furniture Mart      Retailing home furnishings

   Northland                    Fractional horsepower electric motors

   Powerwinch                   Marine and general purpose winches, 
                                 windlasses, and hoists

   Precision Steel Products     Steel service center

   Quikut                       Cutlery for the home and sporting goods 
                                 markets

   ScottCare                    Cardiopulmonary rehabilitation and 
                                 monitoring equipment

   Scot Labs                    Cleaning and maintenance chemicals

   See's Candies                Boxed chocolates and other confectionery 
                                 products

   Stahl                        Custom steel service bodies, flatbed 
                                 bodies, cranes and tool boxes for trucks

   Wayne                        Furnace burners; sump, utility and sewage 
                                 pumps

   Western Enterprises          Medical and industrial compressed gas 
                                 fittings and regulators

   Western Plastics             Molded plastic components

   R.C. Willey Home Furnishings Retailing home furnishings

   World Book                   Printed and multimedia encyclopedias and 
                                 other reference materials


BERKSHIRE HATHAWAY INC.

MANUFACTURING, PUBLISHING AND RETAILING BUSINESSES

                           Balance Sheets
                        (dollars in millions)

                                                        December 31,
                                                   --------------------
                                                     1996        1995
                                                   --------    --------
Assets
  Cash and cash equivalents. . . . . . . . . . .   $   61.1    $  124.5
  Accounts receivable. . . . . . . . . . . . . .      563.1       454.7
  Inventories. . . . . . . . . . . . . . . . . .      578.7       556.0
  Properties and equipment . . . . . . . . . . .      863.2       285.5
  Other. . . . . . . . . . . . . . . . . . . . .       97.9        34.3
                                                   --------    --------
                                                   $2,164.0    $1,455.0
                                                   ========    ========

Liabilities
  Accounts payable, accruals and other . . . . .   $  523.3    $  398.3
  Income taxes . . . . . . . . . . . . . . . . .      126.9        20.1
  Term debt and other borrowings . . . . . . . .      193.3       150.6
                                                   --------    --------
                                                      843.5       569.0
                                                   --------    --------

Equity
  Minority shareholders' . . . . . . . . . . . .       51.6        39.5
  Berkshire shareholders'. . . . . . . . . . . .    1,268.9       846.5
                                                   --------    --------
                                                    1,320.5       886.0
                                                   --------    --------
                                                   $2,164.0    $1,455.0
                                                   ========    ========


                       Statements of Earnings
                        (dollars in millions)

                                                1996      1995      1994   
                                              --------  --------  --------
Revenues:
  Sales and service revenues. . . . . . . .   $3,061.9  $2,755.9  $2,351.9
  Interest income . . . . . . . . . . . . .       38.8      25.1       9.1
                                              --------  --------  --------
                                               3,100.7   2,781.0   2,361.0
                                              --------  --------  --------

Cost and expenses:
  Cost of products and services sold  . . .    1,875.7   1,698.4   1,442.9
  Selling, general and administrative expenses   832.1     741.4     578.5
  Interest on debt. . . . . . . . . . . . .       15.3       9.1       3.7
                                              --------  --------  --------
                                               2,723.1   2,448.9   2,025.1
                                              --------  --------  --------
  Earnings from operations before income taxes   377.6     332.1     335.9
  Income tax expense. . . . . . . . . . . .      138.3     126.4     122.3
                                              --------  --------  --------
                                                 239.3     205.7     213.6
  Minority interest . . . . . . . . . . . .        5.1       4.5       4.9
                                              --------  --------  --------
  Net earnings. . . . . . . . . . . . . . .   $  234.2  $  201.2  $  208.7
                                              ========  ========  ========


     This presentation reflects the results of operations of Helzberg's 
Diamond Shops, R.C. Willey Home Furnishings and FlightSafety 
International from their respective dates of acquisition (Helzberg's - 
April 30, 1995; Willey - June 29, 1995; FlightSafety - December 23, 
1996). Accordingly, while the 1996 balance sheet includes the assets and 
liabilities of FlightSafety as of December 31, 1996, the statement of 
earnings for 1996 includes FlightSafety's operating results for only the 
last eight days of the year.

     Purchase accounting adjustments, including goodwill, arising from 
Berkshire's business acquisitions are not reflected in these statements, 
but instead are reflected in the statements of non-operating activities 
at page 57.

These statements do not conform to GAAP in all respects
These statements are unaudited


BERKSHIRE HATHAWAY INC.

FINANCE BUSINESSES

Scott Fetzer Financial Group, Inc., Berkshire Hathaway Credit Corporation and Berkshire Hathaway Life Insurance Co. of Nebraska make up Berkshire's finance businesses.

                           Balance Sheets
                        (dollars in millions)

                                                        December 31,
                                                    --------------------
                                                      1996        1995
                                                    --------    --------
Assets
  Cash and cash equivalents. . . . . . . . . . .    $   10.5    $   40.7
  Fixed maturity investments . . . . . . . . . .       742.4       529.4
  Installment and other receivables. . . . . . .       228.4       195.7
  Deferred tax assets. . . . . . . . . . . . . .        22.5        14.2
  Other. . . . . . . . . . . . . . . . . . . . .         0.1         0.7
                                                    --------    --------
                                                    $1,003.9    $  780.7
                                                    ========    ========

Liabilities
  Borrowings under investment agreements 
    and other debt. . . . . . . . . . . . . . . .   $  381.3    $  523.6
  Annuity reserves and policyholder liabilities        434.8       116.7
  Accounts payable, accruals and other. . . . . .      123.9        76.5
                                                    --------    --------
                                                       940.0       716.8
                                                    --------    --------

Equity
  Berkshire shareholders' . . . . . . . . . . . .       63.9        63.9
                                                    --------    --------
                                                    $1,003.9    $  780.7
                                                    ========    ========


                       Statements of Earnings
                        (dollars in millions)

                                                   1996    1995    1994   
                                                  ------  ------  ------
Revenues:
  Interest and fees on loans 
    and financed receivables. . . . . . . . . .   $ 38.8  $ 37.9  $ 37.8
  Interest and dividends on investment securities   54.9    43.7    35.4
  Annuity premiums earned . . . . . . . . . . .    259.5    75.2    36.0
                                                  ------  ------  ------          
                                                   353.2   156.8   109.2
                                                  ------  ------  ------

Expenses:
  Interest expense. . . . . . . . . . . . . . .     32.6    38.7    35.5
  Annuity benefits and underwriting expenses. .    276.7    80.8    37.7
  General and administrative. . . . . . . . . .     20.8    16.5    13.9
                                                  ------  ------  ------
                                                   330.1   136.0    87.1
                                                  ------  ------  ------
  Earnings from operations before income taxes      23.1    20.8    22.1
  Income tax expense. . . . . . . . . . . . . .      8.2     8.2     7.5
                                                  ------  ------  ------
  Net earnings. . . . . . . . . . . . . . . . .   $ 14.9  $ 12.6  $ 14.6
                                                  ======  ======  ======


These statements do not conform to GAAP in all respects
These statements are unaudited


BERKSHIRE HATHAWAY INC.

NON-OPERATING ACTIVITIES

These statements reflect the consolidated financial statement values for assets, liabilities, shareholders' equity, revenues and expenses that were not assigned to any Berkshire operating group in the unaudited, and not fully GAAP - adjusted group financial statements heretofore presented (pages 51 to 56).

                      Statements of Net Assets
                        (dollars in millions)

                                                        December 31,
                                                    --------------------
                                                      1996        1995
                                                    --------    --------
Assets
  Cash and cash equivalents . . . . . . . . . . .   $  765.0    $  250.4 
  Investments:
    Fixed maturities:
      Bonds . . . . . . . . . . . . . . . . . . .      942.5         8.2
      Preferred stocks. . . . . . . . . . . . . .       42.0        46.6 
    Equity securities . . . . . . . . . . . . . .      199.0       187.1 
  Unamortized goodwill and 
    other purchase accounting adjustments * . . .    3,149.8       747.6 
  Deferred tax assets . . . . . . . . . . . . . .       31.3         2.4 
  Other . . . . . . . . . . . . . . . . . . . . .      258.8        56.6 
                                                    --------    --------
                                                    $5,388.4    $1,298.9 
                                                    ========    ========

Liabilities
  Accounts payable, accruals and other. . . . . .   $  816.4    $   50.6 
  Income taxes. . . . . . . . . . . . . . . . . .      142.7        94.4 
  Borrowings under investment agreements 
    and other debt. . . . . . . . . . . . . . . .    1,718.2       918.6 
                                                    --------    --------
                                                     2,677.3     1,063.6 
                                                    --------    --------

Equity
  Minority shareholders'. . . . . . . . . . . . .       25.4        28.6 
  Berkshire shareholders' . . . . . . . . . . . .    2,685.7       206.7 
                                                    --------    --------
                                                     2,711.1       235.3 
                                                    --------    --------
                                                    $5,388.4    $1,298.9 
                                                    ========    ========


                       Statements of Earnings
                        (dollars in millions)

                                                 1996     1995     1994
                                                ------   ------   ------
Revenues:
  Interest and dividend income. . . . . . . . . $ 54.6   $ 37.5   $ 31.1 
  Realized investment gain (loss) . . . . . . .  194.7     13.0     (0.7)
                                                ------   ------   ------
                                                 249.3     50.5     30.4 
                                                ------   ------   ------

Expenses:
  Corporate administration. . . . . . . . . . .    5.1      5.3      5.0 
  Shareholder-designated contributions. . . . .   13.3     11.6     10.4 
  Amortization of goodwill 
    and purchase accounting adjustments * . . .   75.7     27.0     22.5 
  Interest on debt. . . . . . . . . . . . . . .   90.9     55.3     59.4 
  Other (income) expense. . . . . . . . . . . .   (2.8)    (1.4)     1.7 
  Other-than-temporary decline 
    in value of investment in 
    USAir Group, Inc. Preferred Stock . . . . .    --       --       7.5 
                                                ------   ------   ------
                                                 182.2     97.8    106.5 
                                                ------   ------   ------
  Income (loss) before income taxes . . . . . .   67.1    (47.3)   (76.1)
  Income tax expense (benefit). . . . . . . . .   43.7    (13.3)   (22.8)
                                                ------   ------   ------
                                                  23.4    (34.0)   (53.3)
  Minority interest . . . . . . . . . . . . . .    7.8      1.3     (0.5)
                                                ------   ------   ------
  Net loss. . . . . . . . . . . . . . . . . . . $ 15.6   $(35.3)  $(52.8)


* Purchase accounting adjustments and goodwill arose in accounting for 
business acquisitions.



These statements do not conform to GAAP in all respects
These statements are unaudited