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 four operating groups of subsidiaries. GEICO Corporation ("GEICO"), currently the sixth largest auto insurer in the U.S., 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. GEICO's voluntary auto policy count grew 21% during the twelve months ended December 31, 1998. 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 other states. Central States Indemnity Company issues credit insurance distributed through credit card issuers nationwide and Kansas Bankers Surety Company is an insurer for primarily small and medium sized banks located in the midwest.

On December 21, 1998, Berkshire completed its acquisition of General Re Corporation. General Re is a holding company for global reinsurance and related risk management operations. General Re, through its domestic subsidiaries, General Reinsurance Corporation and National Reinsurance Corporation, is one of the largest professional property/casualty reinsurance group domiciled in the United States. General Re also owns a controlling interest in Cologne Re, a major international reinsurer.

Berkshire Hathaway's insurance businesses maintains capital strength at unparalleled high levels. Statutory surplus as regards policyholders of these businesses increased to about \$45 billion at December 31, 1998.

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. These combined financial statements include the assets and liabilities of General Re's insurance operations as of December 31, 1998 but exclude the operating results of General Re from 1998's Statement of Earnings.

BERKSHIRE HATHAWAY INC.
INSURANCE GROUP

Balance Sheets
(dollars in millions)

 December 31, 1998 1997 Assets Investments: Fixed maturities at market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$21,216 \$10,028 Equity securities and other investments at market: American Express Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,067 4,315 The Coca-Cola Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,368 13,305 The Walt Disney Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,489 2,083 Freddie Mac. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,885 2,683 The Gillette Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,590 4,821 Wells Fargo & Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,466 2,208 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,629 6,526 60,710 45,969 Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,081 516 Deferred costs. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,226 608 Other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,745 1,287 \$82,762 \$48,380 ====== ====== Liabilities Losses and loss adjustment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$23,012 \$6,850 Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,324 1,274 Policyholder liabilities and other accruals. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,419 1,654 Income taxes, principally deferred. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,432 10,372 44,187 20,150 Equity Minority shareholders' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,554 359 Berkshire shareholders'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,021 27,871 38,575 28,230 \$82,762 \$48,380 ====== ======

Statements of Earnings
(dollars in millions)

 1998 1997 1996 Premiums written . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$5,476 \$4,852 \$4,105 ===== ===== ===== Premiums earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$5,300 \$4,761 \$4,118 Losses and loss expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,904 3,420 3,090 Underwriting expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,131 880 806 Total losses and expenses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,035 4,300 3,896 Underwriting gain - pre-tax. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 265 461 222 Net investment income* . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 974 882 726 Realized investment gain. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,462 1,059 2,290 Earnings before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,701 2,402 3,238 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,186 704 1,007 2,515 1,698 2,231 Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 15 7 Net earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$2,498 \$1,683 \$2,224 ===== ===== =====
 * Net investment income is summarized below: Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$363 \$457 \$418 Interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 621 430 322 Investment expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (10) (5) (14) \$974 \$882 \$726 ==== ==== ====

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

BERKSHIRE HATHAWAY INC.

Combined financial statements of Berkshire's Manufacturing, Retailing and Services 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 Electrical enclosure systems and cable accessories 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 Executive Jet Fractional ownership programs for general aviation aircraft Fechheimer Bros. Co. Uniforms and accessories FlightSafety High technology training to operators of aircraft and ships France Ignition and sign transformers and components 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 International Dairy Queen Licensing and servicing Dairy Queen Stores Kingston Appliance controls 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 compounds and solutions See's Candies Boxed chocolates and other confectionery products Stahl Truck equipment including service bodies, flatbed bodies, cranes, tool boxes, hoists and dump bodies Star Furniture Company Retailing home furnishings Wayne Combustion Systems Oil and gas burners for residential and commercial furnaces and water heaters Wayne Pumps 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.

Balance Sheets
(dollars in millions)

 December 31, 1998 1997 Assets Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 281 \$ 103 Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 823 624 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 727 599 Properties and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,190 892 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 331 156 \$3,352 \$2,374 ===== ===== Liabilities Accounts payable, accruals and other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 761 \$ 532 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 166 157 Term debt and other borrowings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 442 216 1,369 905 Equity Minority shareholders' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 52 Berkshire shareholders' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,908 1,417 1,983 1,469 \$3,352 \$2,374 ===== =====

Statements of Earnings
(dollars in millions)

 1998 1997 1996 Revenues: Sales and service revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$4,675 \$3,615 \$3,095 Interest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 7 6 4,683 3,622 3,101 Cost and expenses: Cost of products and services sold . . . . . . . . . . . . . . . . . . . . . . . . 3,010 2,179 1,876 Selling, general and administrative expenses . . . . . . . . . . . . . . . . . 1,014 899 832 Interest on debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 20 16 4,043 3,098 2,724 Earnings from operations before income taxes . . . . . . . . . . . . . . . . 640 524 377 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 234 200 138 406 324 239 Minority interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6 5 Net earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 401 \$ 318 \$ 234 ==== ==== ====

This presentation reflects the results of operations of FlightSafety International, Star Furniture Company, International Dairy Queen and Executive Jet from their respective dates of acquisition; (FlightSafety - December 23, 1996; Star Furniture - July 1, 1997; International Dairy Queen - January 7, 1998; Executive Jet - August 7, 1998).

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 71.

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

BERKSHIRE HATHAWAY INC.

Scott Fetzer Financial Group, Inc., Berkshire Hathaway Life Insurance Co. of Nebraska and General Re Financial Products make up Berkshire's finance and financial products businesses.

Balance Sheets
(dollars in millions)

 1998 1997 Assets Cash and cash equivalents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 907 \$ 56 Investment in securities with fixed maturities: Held to maturity, at cost (fair value \$1,366 in 1998; \$1,082 in 1997). . . . . . . 1,227 971 Trading, at fair value (cost \$5,643) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,219 - Available for sale, at fair value (cost \$745) . . . . . . . . . . . . . . . . . . . . . . . . . . 743 - Trading account assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,234 - Securities purchased under agreements to resell. . . . . . . . . . . . . . . . . . . . . . . . 1,083 - Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,576 244 \$16,989 \$1,271 ====== ===== Liabilities Annuity reserves and policyholder liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 816 \$ 697 Securities sold under agreements to repurchase . . . . . . . . . . . . . . . . . . . . . . . . 4,065 - Securities sold but not yet purchased . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,181 - Trading account liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,834 - Notes payable and other borrowings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,503 326 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,428 126 \$15,827 \$1,149 Equity Berkshire shareholders' . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,162 122 \$16,989 \$1,271 ====== =====

Statements of Earnings
(dollars in millions)

 1998 1997 1996 Revenues: Annuity premiums earned . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$   95 \$ 248 \$ 259 Other revenues. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 293 112 94 388 360 353 Expenses: Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 24 32 Annuity benefits and underwriting expenses . . . . . . . . . . . . . . . . . 146 287 277 General and administrative. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 21 21 189 332 330 Earnings from operations before income taxes. . . . . . . . . . . . . . . 199 28 23 Income tax expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 10 8 Net earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 129 \$   18 \$   15 ==== ==== ====

This presentation includes the assets and liabilities as of December 31, 1998 of General Re Financial Products, acquired in connection with the acquisition of General Re Corporation on December 21, 1998. It does not include the operating results of this business.

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 65 to 70).

Statements of Net Assets
(dollars in millions)

 December 31, 1998 1997 Assets Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 220 \$ 383 Investments: Fixed maturities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 269 Equity securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 267 307 Unamortized goodwill and other purchase accounting adjustments * . . . . . . . . 18,613 3,099 Deferred tax assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 130 136 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 128 104 \$19,388 \$4,298 ====== ===== Liabilities Accounts payable, accruals and other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$ 40 \$ 40 Income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 158 152 Borrowings under investment agreements and other debt . . . . . . . . . . . . . . . . 1,863 2,016 2,061 2,208 Equity Minority shareholders'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 45 Berkshire shareholders'. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,312 2,045 17,327 2,090 \$19,388 \$4,298 ====== =====

Statements of Earnings
(dollars in millions)

 1998 1997 1996 Revenues: Interest, dividend and other income . . . . . . . . . . . . . . . . . . . . . . . . . \$   63 \$   41 \$   55 Realized investment gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 53 194 103 94 249 Expenses: Corporate administration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 7 5 Shareholder-designated contributions . . . . . . . . . . . . . . . . . . . . . . . 17 15 13 Amortization of goodwill and purchase accounting adjustments * 210 105 76 Interest on debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 96 101 91 Other income. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . -- (7) (3) 329 221 182 Income (loss) before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . (226) (127) 67 Income tax expense (benefit) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (33) (17) 44 (193) (110) 23 Minority interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 8 7 Net earnings (loss). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . \$(198) \$(118) \$   16 ===== ===== ====

* 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