CONSOLIDATED BALANCE SHEETS
(dollars in millions except share amounts)

CONSOLIDATED STATEMENTS OF EARNINGS
(dollars in millions except per share amounts)

	March 31,	December 31,
	2000	1999
Amortized cost	$30,896	$31,429
Gross unrealized gains	36	51
Gross unrealized losses	(983)	(1,258)
Estimated fair value	$29,949	$30,222
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Data with respect to investments in equity securities are shown in the tabulation below (in millions).

	March 31,	December 31,
	2000	1999
Total cost	$10,162	$9,674
Gross unrealized gains	24,487	28,229
Gross unrealized losses	(133)	(131)
Total fair value	$34,516	$37,772
	======	======
Fair value:
American Express Company	$7,527	$ 8,402
The Coca-Cola Company	9,388	11,650
The Gillette Company	3,618	3,954
Other equity securities	13,983	13,766
Total	$34,516	$37,772
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The tax effects of significant items comprising Berkshire’s net deferred tax liabilities as of March 31, 2000 and December 31, 1999 are as follows (in millions):

	March 31,	December 31,
	2000	1999
Deferred tax liabilities:
Relating to unrealized appreciation of investments	$8,172	$9,383
Other	1,417	1,252
	9,589	10,635
Deferred tax assets	(1,087)	(1,042)
Net deferred tax liabilities	$8,502	$9,593
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The following table summarizes Berkshire's common stock activity during the first quarter of 2000.

Results of Operations

Net earnings for the first quarter of 2000 and 1999 are disaggregated in the table that follows. Amounts are after deducting minority interests and income taxes. Dollar amounts are in millions.

A summary follows of underwriting results from Berkshire’s insurance segments for the first quarter of 2000 and 1999. Dollar amounts are in millions.

Berkshire engages in both primary insurance and reinsurance of property and casualty risks. Through General Re, Berkshire also reinsures life and health risks. In primary insurance activities, Berkshire subsidiaries assume defined portions of the risks of loss from persons or organizations that are directly subject to the risks. In reinsurance activities, Berkshire subsidiaries assume defined portions of similar or dissimilar risks that other insurers or reinsurers have subjected themselves to in their own insuring activities. Berkshire’s principal insurance businesses are: (1) GEICO, the sixth largest auto insurer in the United States, (2) General Re, one of the four largest reinsurers in the world, (3) Berkshire Hathaway Reinsurance Group ("BHRG") and (4) Berkshire Hathaway Direct Insurance Group.

GEICO Corporation through its affiliates ("GEICO") provides private passenger auto insurance to customers in 48 states and the District of Columbia. GEICO policies are marketed mainly through direct response methods, in which insureds apply directly to the company for insurance coverage over the telephone, through the mail or via the Internet. This is a significant element in GEICO’s strategy to be a low cost insurer and, yet, provide high value to policyholders.

GEICO’s pre-tax underwriting results for the first quarter of 2000 and 1999 are summarized in the table below. Dollar amounts are in millions.

Losses and loss adjustment expenses incurred during the first quarter of 2000 exceeded amounts incurred during the first quarter of 1999 by 26.4%. The loss ratio, which measures the portion of premiums earned that is paid or reserved for claims and claim handling expenses, was 86.5% in the first quarter of 2000 compared to 81.3% a year ago. The loss ratio for 2000 reflects higher frequency and severity of auto physical damage and personal injury protection losses. The increases in frequency and severity of such losses were greater than anticipated and contributed, in large part, to the level of net underwriting losses incurred. In addition, losses incurred from catastrophe events added 1.3 percentage points to the 2000 loss ratio and 0.3 percentage points to the 1999 ratio.

Underwriting expenses incurred in the first quarter of 2000 exceeded 1999 by 27.7%. The ratio of underwriting expenses to premiums earned was 20.1% in the first quarter of 2000 compared to 18.7% in the prior year. These increases reflect additional advertising and costs related to new business growth.

In response to increased losses in 2000, discussed above, GEICO initiated steps to increase premium rates in certain states and expects to file for additional rate increases in many other states over the remainder of 2000. However, it takes six to twelve months for the full effect of a rate increase to be reflected in premiums earned. GEICO expects to continue to incur high levels of marketing costs over the remainder of 2000 in order to generate additional policy growth. However, higher advertising costs and lower closure rates are expected to produce higher unit costs of acquiring new business. Consequently, ongoing underwriting losses are anticipated throughout 2000.

General Re and its affiliates conduct a global reinsurance business with operations in the United States and 125 other countries around the world. General Re’s principal reinsurance operations are: (1) North American property/casualty, (2) International property/casualty, and (3) Global life/health. The international property/casualty operations are conducted primarily through Germany-based Cologne Re and its subsidiaries. At March 31, 2000, General Re held an 88% economic ownership interest in Cologne Re.

General Re’s consolidated premiums earned during the first quarter totaled $1,680 million in 2000 and $1,551 million in 1999. General Re produced a consolidated net underwriting loss for the first quarter of 2000 of $273 million compared to a consolidated net underwriting loss of $136 million in 1999. Current underwriting conditions in the reinsurance industry are generally difficult. General Re’s overall underwriting results during the first quarter of 2000 were unsatisfactory and reflected the effects of inadequate rates charged in recent years, as well as higher international catastrophe and large property losses. General and Cologne Re management is addressing these matters with the objective of returning underwriting results to more profitable levels. However, due to the inherent time lag between when pricing decisions are made and when the effects of such decisions are evident in the financial statements, underwriting results are likely to remain unsatisfactory during the remainder of 2000.

Results by General Re business segment follow.

General Re’s North American property/casualty pre-tax underwriting results for the first quarter of 2000 and 1999 are shown below. Dollar amounts are in millions.

North American property/casualty operations underwrite predominantly excess reinsurance across multiple lines of business. For the first three months of 2000, North American property/casualty earned premiums grew 5.9%. The most significant increases occurred in the national and regional multi-line segments as well as in the excess, surplus and individual risk businesses. These increases were partially offset by decreases in the health care and small multi-line segments.

First quarter 2000 North American property/casualty underwriting results deteriorated from first quarter 1999. Underwriting results for the first three months of 2000 included significantly less favorable development on loss reserves established for previous years’ casualty claims than in 1999. First quarter 2000 current accident year results, while unsatisfactory, improved over current accident year results for the first quarter of 1999. This improvement resulted primarily from lower catastrophe and other large property losses incurred during the quarter. Losses arising from catastrophic events and other large property losses added 9.4% points to the loss and loss expense ratio for the first three months of 2000 as compared to 11.7% points for the same period of 1999.

General Re’s International property/casualty pre-tax underwriting results for the first quarter of 2000 and 1999 are shown below. Dollar amounts are in millions.

General Re’s Global life/health pre-tax underwriting results for the first quarter of 2000 and 1999 are shown below. Dollar amounts are in millions.

	2000		1999
	Amount	%	Amount	%
Revenues	$1,545	100.0	$1,289	100.0
Costs and expenses	1,415	91.6	1,151	89.3
Earnings before income taxes and minority interest	130	8.4	138	10.7
Applicable income taxes and minority interest	51	3.3	54	4.2
Net earnings	$   79	5.1	$   84	6.5
	====	===	====	===

Revenues from these several and diverse business activities during 2000's first quarter were greater by $256 million (19.9%) than revenues during the corresponding 1999 periods. Significant increases arose in the Furniture segment and the Flight Services segment. Furniture segment revenues for the first quarter of 2000 include revenues from Jordan’s Furniture (acquired in November 1999) and CORT Business Services (acquired in February 2000).

Net earnings of these businesses in the first quarter of 2000 declined slightly from the first quarter of 1999. Increased earnings in the Flight Services and Furniture segments were more than offset by a decline in the earnings of Dairy Queen and See’s. Dairy Queen’s first quarter 2000 results include non-recurring pre-tax charges of approximately $27 million associated with estimated costs to be incurred in connection with the settlement of litigation (that pre-dated Berkshire’s acquisition of Dairy Queen) by certain franchisees and provisions for losses in connection with the bankruptcy of a major supplier. See’s earnings were lower due to the timing of Easter.

Goodwill amortization and other purchase-accounting-adjustments reflect the after-tax effect on net earnings with respect to the amortization of goodwill of acquired businesses and the amortization of fair value adjustments to certain assets and liabilities which were recorded at the acquisition dates of certain businesses (principally General Re and GEICO).

Other purchase accounting adjustments pertain primarily to the amortization of the excess of market value over historical cost of General Re’s fixed maturity investments that existed at the date of the merger. Such excess is included in Berkshire’s cost of the investments and is being amortized over the remaining lives of the investments. The unamortized excess remaining in the cost of fixed maturity investments totaled $870 million at March 31, 2000.

Other activities not identified with business segments include a number of finance businesses conducted through several subsidiaries. Pre-tax income from finance and financial products businesses was $282 million in 2000 versus $59 million in 1999. The increased income of these businesses during 2000 as compared to 1999 was primarily attributed to net realized and unrealized gains of investments classified as held for trading purposes. The net realized and unrealized gains of these securities are included as a component of Income from finance and financial products businesses in the accompanying Consolidated Statements of Earnings. Accordingly, the level of income earned in a given period is subject to considerable volatility.

Realized investment gain/loss has been a recurring element in Berkshire's net earnings for many years. Such amounts — recorded (1) when investments are sold; (2) other than temporarily impaired; and (3) in certain situations, as provided under GAAP, when investments are marked-to-market with a corresponding gain or loss included in earnings — may fluctuate significantly from period to period, resulting in a meaningful effect on reported net earnings. The Consolidated Statements of Earnings include after-tax realized investment gains of $453 million and $247 million for the first quarter of 2000 and 1999, respectively.

Berkshire's balance sheet continues to reflect significant liquidity and above average capital strength. Shareholders' equity at March 31, 2000, was $56.3 billion, or $37,013 per equivalent share of Class A Common Stock.

Investors are cautioned that certain statements contained in this document as well as some statements in periodic press releases and some oral statements of Berkshire officials during presentations about Berkshire, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects", "anticipates", "intends", "plans", "believes", "estimates", or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future Berkshire actions, which may be provided by management are also forward-looking statements as defined by the Act. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about Berkshire, economic and market factors and the industries in which Berkshire does business, among other things. These statements are not guaranties of future performance and Berkshire has no specific intention to update these statements.

Actual events and results may differ materially from those expressed or forecasted in forward-looking statements due to a number of factors. The principal important risk factors that could cause Berkshire’s actual performance and future events and actions to differ materially from such forward-looking statements, include, but are not limited to, changes in market prices of Berkshire's significant equity investees, the occurrence of one or more catastrophic events, such as an earthquake or hurricane that causes losses insured by Berkshire's insurance subsidiaries, changes in insurance laws or regulations, changes in Federal income tax laws, and changes in general economic and market factors that affect the prices of securities or the industries in which Berkshire and its affiliates do business, especially those affecting the property and casualty insurance industry.