Data with respect to investments in equity securities are shown in the tabulation below (in millions):

The tax effects of significant items comprising Berkshire’s net deferred tax liabilities as of September 30, 2000 and December 31, 1999 are as follows (in millions):

The following table summarizes Berkshire's common stock activity during the first nine months of 2000.

Each share of Class A Common Stock is convertible, at the option of the holder, into thirty shares of Class B Common Stock. Class B Common Stock is not convertible into Class A Common Stock. Class B Common Stock has economic rights equal to one-thirtieth (1/30) of the economic rights of Class A Common Stock. Accordingly, on an equivalent Class A Common Stock basis, there are 1,525,418 shares outstanding at September 30, 2000 and 1,520,562 shares outstanding at December 31, 1999.

Each Class A Common share is entitled to one vote per share. Each Class B Common share possesses the voting rights of one-two-hundredth (1/200) of the voting rights of a Class A share. Class A and Class B Common shares vote together as a single class.

Berkshire’s comprehensive income for the third quarter and first nine months of 2000 and 1999 is shown in the table below (in millions). Other comprehensive income consists of unrealized gains and losses on investments and foreign currency translation adjustments associated with foreign-based business operations.

Assets and liabilities of Berkshire's finance and financial products businesses are summarized below (in millions):

A disaggregation of Berkshire’s consolidated data for the third quarter and first nine months of each of the two most recent years is as follows. Amounts are in millions.

International property/casualty

	Third Quarter				First Nine Months
	2000		1999		2000		1999
	Amount	%	Amount	%	Amount	%	Amount	%
Premiums earned	$653	100.0	$ 587	100.0	$1,881	100.0	$1,701	100.0
Losses and loss expenses	521	79.8	497	84.7	1,631	86.7	1,391	81.8
Underwriting expenses	202	30.9	195	33.2	611	32.5	569	33.4
Total losses and expenses	723	110.7	692	117.9	2,242	119.2	1,960	115.2
		====		====		====		====
Underwriting loss	$ (70)		$(105)		$ (361)		$ (259)
	====		====		====		====

The international property/casualty operations write primarily quota-share and, to a lesser degree, excess reinsurance on risks around the world. In recent years, the largest international markets have been in Germany and Western Europe. International reinsurance business includes a significant level of property reinsurance. Premiums earned in the third quarter and first nine months of 2000 increased over 1999 levels by 11.2% and 10.6%, respectively. Adjusting for the effects of overall declining foreign exchange rates, earned premiums in local currencies grew 21.3% during the third quarter and 21.4% for the first nine months of 2000. The growth in earned premiums was primarily due to increased premiums in European markets outside Germany, premiums due from cedants to reinstate coverage as a result of fourth quarter 1999 European winter storm losses, new business in South America, and from DP Mann’s Syndicate 435 at Lloyd’s of London.

Underwriting results of the international property/casualty segment for the first nine months of 2000 remained very poor, despite the fact that the third quarter 2000’s results improved considerably in comparison with 1999’s third quarter and the first half of 2000 due primarily to lower levels of catastrophe losses. The increase in the loss ratio for the first nine months of 2000 was primarily due to adverse development in the first half of 2000 from the December 1999 European winter storms and inadequate premium rates in many international property/casualty markets. The effect of catastrophes, including development from 1999 events, and other large property losses represented 8.1 points of the loss and loss expense ratio for the first nine months of 2000, compared to 4.9 points for the same period of 1999. Consequently, periodic underwriting results for the international property/casualty business can be volatile, given the significant level of property business written.

Global life/health

	Third Quarter				First Nine Months
	2000		1999		2000		1999
	Amount	%	Amount	%	Amount	%	Amount	%
Premiums earned	$400	100.0	$509	100.0	$1,259	100.0	$1,293	100.0
Losses and loss expenses	311	77.8	406	79.8	1,041	82.7	1,087	84.0
Underwriting expenses	109	27.2	117	23.0	294	23.3	319	24.7
Total losses and expenses	420	105.0	523	102.8	1,335	106.0	1,406	108.7
		====		====		====		====
Underwriting loss	$ (20)		$ (14)		$  (76)		$ (113)
	====		====		====		====

Global life/health net earned premiums decreased 21.4% for the third quarter and 2.6% in the first nine months of 2000. The decreases in premiums in 2000 periods resulted primarily from reduced premiums on run-off business written by GCL’s former London-based managing underwriter. Adjusting for the effects of the run-off business, global life/health earned premiums increased 2.3% for the third quarter and 6.0% for the first nine months of 2000.

The global life/health operations produced improved but still unsatisfactory underwriting results for the first nine months of 2000 and 1999. Underwriting results weakened in the international life/health business, while the U.S. life/health operations have continued to show improvement during the third quarter and year-to-date 2000.

Premiums earned of $1,291 million and $1,596 million during the third quarter and first nine months of 2000 declined from the third quarter and first nine months of 1999 by 9.1% and 18.8% respectively. Much of the premium volume generated in the past two years by BHRG derived from retroactive reinsurance and property catastrophe excess-of loss policies. Retroactive reinsurance refers to policies that indemnify ceding companies for losses arising under contracts written in the past by the ceding companies. It is often anticipated that a significant level of environmental and latent injury claims will arise under these contracts. Catastrophe policies indemnify ceding companies against specific losses or the accumulation of losses arising out of specified catastrophic events.

For the first nine months, premiums earned from retroactive coverage totaled $1,227 million in 2000 and $1,508 million in 1999. Of such amount $1,201 million and $1,227 million were earned during the third quarters of 2000 and 1999 respectively. BHRG is actively negotiating additional retroactive reinsurance contracts, which, if such transactions are consummated, will produce additional premiums in excess of $3 billion. It is not anticipated that these contracts will be finalized until 2001.

Premiums earned from catastrophe policies for the third quarter and first nine months of 2000 were $61 million and $263 million. For the third quarter and first nine months of 1999, premiums earned from catastrophe policies were $87 million and $222 million.

Premiums earned from BHRG’s other non-catastrophe reinsurance businesses were $106 million and $236 million for the first nine months of 2000 and 1999 respectively. The decline in premiums earned was attributed to the expiration and non-renewal in 1999 of a large excess-casualty reinsurance agreement and to a comparative decline in business assumed from General Re’s North American reinsurance operation.

The underwriting results of BHRG include significant recurring charges associated with the amortization of deferred charges established in connection with retroactive reinsurance activities and accretion of discounted structured settlement liabilities. Time-value-of-money concepts are an important element in determining the premiums for these businesses, because corresponding claim payments are expected to occur over lengthy periods of time. The periodic amortization and accretion charges reflect the recognition of such time value of money concepts and are included as losses incurred over the estimated claim settlement periods.

In 2000, net underwriting losses from retroactive reinsurance totaled $51 million for the third quarter and $130 million for the first nine months. For the third quarter and first nine months of 1999, net underwriting losses were $43 million and $88 million. Amortization and accretion charges are expected to rise considerably over the remainder of 2000 and into 2001 due to the increased level of new retroactive reinsurance accepted.

For the third quarter and first nine months of 2000, BHRG’s catastrophe reinsurance produced net underwriting gains of $73 million and $120 million. For comparative prior year periods, this business generated net underwriting gains of $69 million for the third quarter and $132 million for the first nine months. Although Berkshire’s catastrophe reinsurance business has generated meaningful underwriting gains in recent years, considerable potential for future underwriting losses currently remains. Significant exposure to catastrophe losses exists with respect to hurricane risks in the eastern U.S. and earthquake risks in California. Consequently, underwriting results for the catastrophe business are subject to exceptional volatility.

Net underwriting losses for the first nine months from other non-catastrophe reinsurance activities were $5 million in 2000 and $131 million in 1999. The improvement in net underwriting results in 2000 compared to 1999 was primarily attributed to a decline in losses assumed under the previously mentioned large casualty excess treaty and reduced losses from General Re’s North American property/casualty business.

After-tax net investment income produced by Berkshire’s insurance and reinsurance businesses for the third quarter and first nine months of 2000 and 1999 is summarized in the table below. Dollars are in millions.

Pre-tax net investment income earned by Berkshire’s insurance and reinsurance businesses during the third quarter and first nine months of 2000 exceeded amounts earned during the corresponding 1999 periods by 1.8% and 6.7%, respectively.

Berkshire’s insurance and reinsurance businesses maintain significant levels of invested assets, approximately $73 billion at September 30, 2000. Invested assets derive from significant amounts of shareholder capital, including reinvested earnings as well as large amounts of policyholder float. "Float" represents the approximate aggregate amount of funds available for investment that is temporarily held by an insurance business for the benefit of its policyholders.

The level of float at September 30, 2000 was approximately $27.1 billion, compared to $25.3 billion at December 31, 1999. The increase in float during 2000 was largely attributed to new float generated by BHRG’s, retroactive reinsurance activities. Berkshire’s average cost of float, as measured by the pre-tax underwriting losses to average float, for the first nine months of 2000 was approximately 5.3%.

As discussed previously, BHRG is currently negotiating additional new retroactive reinsurance arrangements. If and when such transactions are consummated, the level of float could rise substantially.

Results of operations of Berkshire's diverse non-insurance businesses for the third quarter and first nine months of 2000 and 1999 are shown in the following table. Dollar amounts are in millions.

	Third Quarter				First Nine Months
	2000		1999		2000		1999
	Amount	%	Amount	%	Amount	%	Amount	%
Revenues	$1,958	100.0	$1,409	100.0	$5,621	100.0	$4,313	100.0
Costs and expenses	1,678	85.7	1,254	89.0	4,660	82.9	3,721	86.3
Earnings before taxes/minority interest	280	14.3	155	11.0	961	17.1	592	13.7
Income taxes and minority interest	111	5.7	62	4.4	359	6.4	232	5.4
Net earnings	$ 169	8.6	$   93	6.6	$ 602	10.7	$ 360	8.3
	====	===	===	===	====	===	====	===

As shown in the preceding table, revenues and net earnings of Berkshire’s numerous and diverse non-insurance businesses for 2000 periods exceeded revenues and net earnings for 1999 periods by a considerable margin. Combined revenues for the third quarter and first nine months of 2000 exceeded 1999 amounts by $549 million (39.0%) and $1,308 million (30.3%), respectively. Net earnings for the third quarter and first nine months of 2000 exceeded 1999 amounts by $76 million (81.7%) and $242 million (67.2%), respectively.

The inclusion of the results from four business acquisitions, which closed during the period between November 1999 and August 2000, account for a significant portion of the comparative increases in revenues and net earnings during the 2000 periods. Jordan’s Furniture, Inc., acquired in November 1999, CORT Business Services, acquired in February 2000, Ben Bridge Jeweler, acquired July 2000 and Justin Industries (Acme Building Brands and Justin Brands), acquired August 2000 is each included in Berkshire’s non-insurance business results from its respective date of acquisition. In the aggregate, these businesses accounted for $314 million and $583 million of the revenue increase during the third quarter and first nine months of 2000, respectively. Such businesses were responsible for $20 million and $36 million of the additional net earnings generated by the non-insurance businesses during the third quarter and first nine months of 2000, respectively.

Included in this diverse group of businesses are Berkshire’s finance businesses. Net earnings from these businesses increased $61 million during the third quarter of 2000 and $226 million during the first nine months of 2000 over amounts recorded in the comparable 1999 periods. Much of the increase was attributable to the recognition of gains on a large portfolio of trading securities. Such securities have been sold and/or matured and there can be no guarantee that similar results will be reported in future periods.

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 $778 million at September 30, 2000, compared to $988 million at September 30, 1999.

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 $1,344 million and $784 million for the first nine months of 2000 and 1999, respectively.

Berkshire’s balance sheet continues to reflect significant liquidity and a strong capital base. Consolidated shareholders’ equity at September 30, 2000 totaled $59.4 billion. Consolidated cash and invested assets, excluding assets of finance and financial products businesses totaled approximately $75 billion at September 30, 2000. During 2000, Berkshire has deployed approximately $2.8 billion in cash for business acquisitions and investments in MidAmerican. In addition, during the remainder of 2000 and in early 2001, Berkshire expects to employ approximately $3 billion in cash to consummate the Shaw Industries and Benjamin Moore acquisitions. It is expected that the cash for these acquisitions will be derived from internally generated funds. The net amount of borrowings under investment agreements and other debt increased $169 million during the first nine months of 2000. The increase was due to the inclusion of debt of subsidiaries assumed in connection with business acquisitions during 2000 and an increase in debt employed by certain Berkshire subsidiaries in their business operations, partially offset by a decline in corporate debt.

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.