BERKSHIRE HATHAWAY INC.
INTERIM REPORT
For the Quarter
Ended March 31, 1998


CONSOLIDATED BALANCE SHEETS
(dollars in millions except share amounts)

                                                        March 31,  December 31,
                                                          1998        1997
                                                        --------    --------
ASSETS
Cash and cash equivalents...............................$ 1,032     $  1,002
Investments:
  Securities with fixed maturities...................... 10,259       10,298
  Equity securities and other investments............... 40,210       36,248
Receivables.............................................  1,803        1,711
Inventories.............................................    681          639
Assets of finance businesses............................  1,243        1,249
Property, plant and equipment...........................  1,092        1,057
Goodwill of acquired businesses.........................  3,433        3,067
Other assets............................................  1,413          840
                                                        -------     --------
                                                        $61,166      $56,111
                                                        =======     ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Losses and loss adjustment expenses.....................$ 7,259      $ 6,850
Unearned premiums.......................................  1,499        1,274
Accounts payable, accruals and other liabilities........  1,850        2,202
Income taxes, principally deferred...................... 11,974       10,539  
Borrowings under investment agreements and other debt...  2,262        2,267    
Liabilities of finance businesses.......................  1,042        1,067
                                                        -------     --------
                                                         25,886       24,199
                                                        -------     --------

Minority shareholders' interests........................    501          457
                                                        -------     --------
Shareholders' equity:
 Common Stock: *
  Class A Common Stock, $5 par value and Class B
  Common Stock, $0.1667 par value.......................      7            7
 Capital in excess of par value.........................  2,670        2,347
 Unrealized appreciation of investments, net............ 20,476       18,198
 Retained earnings...................................... 11,656       10,934
                                                        -------     --------
                                                         34,809       31,486    
 Less: Cost of Class A common shares in treasury........     30           31
                                                        -------     --------
Total shareholders' equity.............................. 34,779       31,455
                                                        -------     --------
                                                        $61,166      $56,111
                                                        =======     ======== 


* Class B Common Stock has economic rights equal to one-thirtieth (1/30) of the economic rights of Class A Common Stock. On an equivalent Class A Common Stock basis, there are 1,241,183 shares outstanding at March 31, 1998 and 1,234,127 shares outstanding on December 31, 1997.

See accompanying Notes


BERKSHIRE HATHAWAY INC.
CONSOLIDATED STATEMENTS OF EARNINGS

(dollars in millions except per share amounts)


                                                            First Quarter
                                                        -------------------
                                                          1998        1997
                                                        -------     -------
Revenues:
 Insurance premiums earned...........................   $ 1,367     $   983
 Sales and service revenues..........................       974         817
 Interest, dividend and other investment income......       249         235
 Income from finance businesses......................        12           7
 Realized investment gain............................       723          33
                                                        -------     -------
                                                          3,325       2,075
                                                        -------     -------
Cost and expenses:
 Insurance losses and loss adjustment expenses.......     1,094         753
 Insurance underwriting expenses.....................       224         160   
 Cost of products and services sold..................       619         501   
 Selling, general and administrative expenses........       249         214   
 Goodwill amortization...............................        23          21   
 Interest expense....................................        27          28
                                                        -------     -------
                                                          2,236       1,677
                                                        -------     -------
Earnings:
Earnings before income taxes and minority interest...     1,089         398
 Income taxes........................................       363         110   
 Minority interest...................................         4           4
                                                        -------     -------
Net earnings.........................................   $   722     $   284
                                                         ======      ======

 Average shares outstanding *........................ 1,240,710   1,232,245

Net earnings per share *.............................   $   582     $   231
                                                         ======      ======


* Average shares outstanding include average Class A Common shares and average Class B Common shares determined on an equivalent Class A Common Stock basis. Net earnings per share shown above represents net earnings per equivalent Class A Common share. Net earnings per Class B Common share is equal to one-thirtieth (1/30) of such amount.

See accompanying Notes


BERKSHIRE HATHAWAY INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions except per share amounts)

                                                                      First Quarter
                                                                    ----------------
                                                                      1998     1997
                                                                    -------  -------
Net cash flows from operating activities............................$  (31)  $  490
                                                                    -------  -------
 Cash flows from investing activities:
  Purchases of investments..........................................(1,610)    (645)
  Proceeds on sales and maturities of investments................... 2,077      911
  Loans and investments originated in finance businesses............   (93)    (121)
  Principal collections on loans and investments originated
    in finance businesses...........................................    61       70
  Acquisitions of businesses........................................  (210)    (775)
  Other.............................................................   (45)     (36)
                                                                    -------  -------
Net cash flows from investing activities............................   180     (596)
                                                                    -------  -------
 Cash flows from financing activities:
  Proceeds from borrowings of finance businesses....................    --       30
  Proceeds from other borrowings....................................   309      257
  Repayments of borrowings of finance businesses....................   (42)     (46)
  Repayments of other borrowings....................................  (409)    (355)   
                                                                    -------  -------
Net cash flows from financing activities............................  (142)    (114)
                                                                    -------  -------
Increase(decrease) in cash and cash equivalents.....................     7     (220)   
Cash and cash equivalents at beginning of year *.................... 1,058    1,350    
                                                                    -------  -------
Cash and cash equivalents at end of first quarter *.................$1,065   $1,130    
                                                                    =======  =======
Supplemental cash flow information:
 Cash paid during the period for:
  Income taxes......................................................$  139   $   18
  Interest..........................................................    30       34    

Non-cash investing activity:
 Liabilities assumed in connection with acquisition of business.....    51   	 -- 
 Common shares issued in connection with acquisition of business....   323       -- 


 * Cash and cash equivalents are comprised of the following:
   Beginning of year --
            Finance businesses......................................$   56   $   10
            Other................................................... 1,002    1,340
                                                                    -------  -------
	                                                             1,058   $1,350
                                                                    =======  =======  

   End of first quarter --
            Finance businesses......................................$   33   $   17
            Other................................................... 1,032    1,113
                                                                    -------  -------
	                                                            $1,065   $1,130
                                                                    =======  =======


See accompanying Notes


BERKSHIRE HATHAWAY INC.
Notes To Interim Consolidated Financial Statements
March 31, 1998


Note 1. General

The accompanying unaudited consolidated financial statements include the accounts of Berkshire consolidated with the accounts of all its subsidiaries. Reference is made to Berkshire's most recently issued Annual Report that included information necessary or useful to understanding of Berkshire's businesses and financial statement presentations. In particular, Berkshire's significant accounting policies and practices were presented as Note 1 to the Consolidated Financial Statements included in that Report.

Financial information in this Report reflects any adjustments (consisting only of normal recurring adjustments) that are, in the opinion of management, necessary to a fair statement of results for the interim periods in accordance with generally accepted accounting principles. Certain amounts for 1997 have been reclassified to conform with the 1998 presentation.

For a number of reasons, Berkshire's results for interim periods are not normally indicative of results to be expected for the year. The timing and magnitude of catastrophe losses incurred by insurance subsidiaries and the estimation error inherent to the process of determining liabilities for unpaid losses of insurance subsidiaries can be relatively more significant to results of interim periods than to results for a full year. Realized investment gains/losses are recorded when investments are sold, other-than-temporarily impaired or in certain situations, as required by GAAP, when investments are marked-to-market with the corresponding gain or loss included in earnings. Variations in amount and timing of realized investment gains/losses can cause significant variations in periodic net earnings.

Note 2. Business acquisition

On January 7, 1998, the previously announced merger of International Dairy Queen, Inc. ("Dairy Queen") with and into a wholly owned subsidiary of Berkshire was completed. Owners of Dairy Queen shares outstanding received merger consideration of approximately $588 million, consisting of $265 million in cash and the remainder in Class A and Class B common stock. The merger was accounted for under the purchase method. The excess of the purchase price over the fair value of net assets acquired was recorded as goodwill of acquired businesses and is being amortized ratably over forty years. The results of Dairy Queen's operations are included in Berkshire's results beginning on January 7, 1998.

Dairy Queen develops, licenses and services a system of approximately 5,800 Dairy Queen stores located throughout the United States, Canada, and other foreign countries, which feature hamburgers, hot dogs, various dairy desserts and beverages. Dairy Queen also develops, licenses and services other stores and shops operating under the names of Orange Julius and Karmelkorn, which feature blended fruit drinks, popcorn and other snacks.

Note 3. Investments in securities with fixed maturities

Data with respect to investments in securities with fixed maturities (other than securities with fixed maturities held by finance businesses -- See Note 8) are shown in the tabulation below (in millions).

                                       March 31,   December 31,
                                          1998         1997
                                        -------      -------
         Amortized cost................ $ 9,487      $ 9,113
         Gross unrealized gains........     772        1,186    
         Gross unrealized losses.......      --           (1)   
                                        -------      -------
         Estimated fair value.......... $10,259      $10,298    
                                        =======      =======

Note 4. Investments in equity securities and other investments

Data with respect to investments in equity securities and other investments are shown in the tabulation below (in millions). Individual investments whose fair values exceed ten percent of consolidated shareholders' equity at March 31, 1998 and December 31, 1997 are listed separately.

                                             March 31,  December 31,
                                               1998         1997
                                            ---------   -----------
     Total cost............................. $ 8,903      $ 9,017
     Gross unrealized gains.................  31,342       27,277
     Gross unrealized losses................     (35)         (46)
                                            ---------   ----------
     Total fair value....................... $40,210      $36,248
                                            =========   ==========
     Fair value:
       American Express Company............. $ 4,541      $ 4,414    
       The Coca-Cola Company................  15,488       13,338    
       The Gillette Company.................   5,697        4,821    
       All others...........................  14,484       13,675
                                            ---------   ----------
       Total................................ $40,210      $36,248    
                                            =========   ==========

Note 5. Deferred income tax liabilities

The tax effects of significant items comprising the Company's net deferred tax liabilities as of March 31, 1998 and December 31, 1997 are as follows (in millions):

                                                           March 31,   December 31,
                                                             1998         1997
                                                           --------     ---------
Deferred tax liabilities:
  Relating to unrealized appreciation of investments......  $11,193      $  9,940   
  Other...................................................    1,123         1,168
                                                           --------     ---------
                                                             12,316        11,108   
Deferred tax assets.......................................     (717)         (708)  
                                                           --------     ---------
  Net deferred tax liabilities............................  $11,599      $ 10,400
                                                           ========     =========

Note 6. Common stock

The following table summarizes Berkshire's common stock activity during the first quarter of 1998.

                                                 Class A Common Stock             Class B Common Stock  
                                             (1,500,000 shares authorized)   (50,000,000 shares authorized)
                                           Issued    In Treasury Outstanding     Issued and Outstanding
                                         ---------   ----------- -----------     ----------------------
Balance at December 31, 1997.............1,366,090     168,202    1,197,888            1,087,156              
Common Stock issued in connection with
  acquisition of business................    --         (4,619)       4,619               72,592
Conversions of Class A Common Stock
  to Class B Common Stock and other......   (6,823)        --        (6,823)             205,216
                                         ---------     -------    ---------            ---------
Balance at March 31, 1998................1,359,267     163,583    1,195,684            1,364,964
                                         =========     =======    =========            =========

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.

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 1,241,183 shares outstanding at March 31, 1998 and 1,234,127 shares outstanding on December 31, 1997.

Note 7. Comprehensive income

The Company adopted Statement of Financial Accounting Standards ("SFAS") No. 130 "Reporting of Comprehensive Income", as of the beginning of 1998. SFAS No. 130 establishes standards for the reporting and display of comprehensive income and its components. Other comprehensive income of the Company consists of unrealized gains and losses on investments. SFAS No. 130 does not affect the measurement of the items included in other comprehensive income; it affects only where those items are displayed and how they are described.

Comprehensive income for first quarter of 1998 and 1997 is as follows (in millions):

                                                                First Quarter
                                                               ---------------
                                                                1998     1997
                                                               ------   ------
     Net earnings............................................. $  722   $  284        
     Other comprehensive income:
       Increase in unrealized appreciation of investments.....  3,573      740
       Applicable income taxes and minority interests.........  1,295      261
                                                               ------   ------
                                                                2,278      479
                                                               ------   ------
     Comprehensive income..................................... $3,000   $  763
                                                               ======   ======

Note 8. Finance businesses

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

                                                          March 31,  December 31,
                                                            1998         1997
Assets                                                    -------      -------
Cash and cash equivalents.................................$    33      $    56
Installment loans and other receivables...................    211          222     
Fixed maturity investments................................    999          971
                                                          -------      -------
                                                          $ 1,243      $ 1,249
                                                          =======      ======= 
Liabilities
Borrowings under investment agreements and other debt.....$   284      $   326     
Annuity reserves and policyholder liabilities.............    726          697     
Other.....................................................     32           44
                                                          -------      -------
                                                          $ 1,042      $ 1,067
                                                          =======      ======= 



BERKSHIRE HATHAWAY INC.
Management's Discussion
March 31, 1998

Net earnings for the first quarter of the current and prior year are summarized in the following table. Amounts are in millions and each figure is income tax effected.

                                                  First Quarter
                                                 --------------
                                                  1998    1997
                                                 ------  ------
Insurance, except realized investment gain.......$  192  $  211   
Manufacturing, merchandising and services........    69      62   
Unallocated income/expense, net..................     7       6   
Interest expense *...............................   (16)    (16)  
                                                 ------  ------
   Earnings before realized investment gain......   252     263   
Realized investment gain.........................   470      21
                                                 ------  ------
   Net earnings..................................$  722  $  284   
                                                 ======  ======

* For purposes of the above table, interest expense of finance businesses is netted against the directly related service activity revenues.

Insurance Group

The after tax figures shown above for Insurance Group earnings, except realized investment gain, are detailed in the following table. Amounts are in millions.

                                                  First Quarter
                                                -----------------
                                                  1998      1997
                                                -------   -------
     Premiums earned from:
       Direct insurance.........................$ 1,018   $   885
       Reinsurance assumed......................    349        98   
                                                -------   -------
                                                $ 1,367   $   983   
                                                =======   =======
     Underwriting gain (loss) attributable to:
       Direct insurance.........................$    58   $    78
       Reinsurance assumed......................     (9)       (7)  
                                                -------   -------
         Total underwriting gain................     49        71   
     Net investment income......................    224       217
     Goodwill amortization *....................    (11)      (11)  
                                                -------   -------
         Earnings before income taxes...........    262       277   
     Income tax expense.........................     68        64   
     Minority interest..........................      2         2
                                                -------   -------
         Net earnings from Insurance,
           except realized investment gain......$   192   $   211   
                                                =======   ======= 

* Principally related to the GEICO merger.



In direct insurance activities, Insurance Group members assume risks of loss from parties who are directly subject to the risks. In reinsurance activities, the members assume defined portions of similar or dissimilar risks to which other insurers or reinsurers have subjected themselves in their own insuring activities.

Direct insurance activities are conducted by GEICO, which became a wholly owned subsidiary of Berkshire in January 1996, and, to a lesser degree, by several other Berkshire subsidiaries. GEICO, through its subsidiaries, provides primarily private passenger automobile insurance to insureds in 48 states and the District of Columbia. GEICO policies are marketed mainly through direct response methods, in which insureds apply for coverage directly to the company over the telephone or through the mail. This is a significant element in GEICO's strategy to be a low cost provider of such coverages. Other direct insurance activities are conducted through 14 other Berkshire affiliates. These businesses offer a wide variety of commercial and personal insurance coverage to insureds located principally in the United States.

Insurance premiums earned by GEICO were $937 million in 1998 and $815 million in 1997. The increase in earned premiums in 1998 reflects the continuing growth of voluntary private passenger auto policies in-force, offset partially by declines in homeowners and residual market auto business. In-force policy growth over the past twelve months was 13.2% for GEICO's preferred-risk auto business and 37.6% for its standard and non-standard auto lines. Considerable marketing efforts and competitive premium rates are major factors in producing GEICO's in-force policy growth, particularly with respect to standard and non-standard auto lines.

Net underwriting gains produced by GEICO during the first quarter were $61 million in 1998 and $70 million in 1997. GEICO's ratio of claim costs (including claim settlement costs) and underwriting expenses incurred to premiums earned was 93.5% for the first quarter of 1998 compared 91.4% for the first quarter of 1997. The 1998 ratio reflects higher levels of underwriting expenses related to additional advertising and other costs associated with new policy growth as well as increased levels of administrative expenses. Partially offsetting the relative increase in underwriting expenses was a relative decrease in claim costs. In both 1998 and 1997, GEICO benefitted from lower than expected frequency of physical damage claims, severity of liability claims and levels of catastrophe losses. Consequently, premium rate reductions were taken in certain states in 1997 and 1998 in order to better align premium rates with pricing targets. Further reductions in premium rates during the remainder of 1998 are possible.

Premiums earned in the first quarter by Berkshire's other direct insurance businesses totaled $81 million in 1998 and $70 million in 1997. Comparatively higher levels of premiums earned by the credit card credit insurance, international auto insurance, and homestate insurance businesses were partially offset by lower amounts earned by the traditional motor vehicle and specialty risk operations. Collectively, the non-GEICO direct insurance businesses produced a net underwriting loss of $3 million during the first quarter of 1998 compared to a net underwriting gain of $8 million for the first quarter of 1997. The decline in net underwriting results for 1998 was primarily attributed to the specialty risk and international auto insurance businesses.

Reinsurance premiums earned during the first quarter of 1998 included $284 million related to retroactive reinsurance contracts. There were no premiums generated from such contracts during the first quarter of 1997. These contracts provide for the indemnification of insurance risks associated with past loss events. Premiums for these contracts tend to be sizable and losses are often expected to be paid out over lengthy time periods. Consequently, the premiums are based, in part, on time value of money concepts. This business is accepted because of the large amounts of investable policyholder funds ("float") that is produced.

Other reinsurance premiums earned during the first quarter of 1998 and 1997 were $65 million and $98 million, respectively. A comparative decline in premiums earned from non-catastrophe reinsurance policies during 1998 more than offset a slight increase in catastrophe premiums earned.

First quarter net underwriting results from reinsurance assumed include charges related to the systematic recognition of time value of money concepts -- amortization of deferred charges re reinsurance assumed established in connection with retroactive reinsurance contracts and accretion of discounted structured settlement liabilities. These charges are included as losses incurred over the settlement periods of the related liabilities and, because there is no offsetting premium income, as net underwriting losses. Net underwriting losses attributed to retroactive reinsurance and structured settlement contracts during the first quarter were $25 million in 1998 and $21 million in 1997.

During the first quarter, other reinsurance activities produced net underwriting gains of $16 million in 1998 and $14 million in 1997. In both 1998 and 1997, net underwriting gains were achieved with respect to catastrophe excess of loss contracts. Periodic net underwriting results remain subject to extreme volatility, particularly with respect to the Insurance Group's catastrophe reinsurance business. Additionally, the recognition of the estimation error inherent in establishing the liability for unpaid losses and loss adjustment expenses can significantly effect periodic underwriting results.

Net investment income earned by Insurance Group members during the first quarter was $224 million in 1998 and $217 million in 1997. In the first quarter of 1998, the Insurance Group earned more taxable interest income, but less dividend income than in the first quarter of 1997. During the first quarter, dividends earned from investments in US Airways Preferred shares were $6 million in 1998 compared to $54 million in 1997. In March 1998, all preferred shares of US Airways were converted into common shares of that company. US Airways has not paid dividends on its common shares for the past several years. Thus, for the remainder of 1998, the Insurance Group will likely earn lower amounts of dividend income than in 1997.

Insurance Group members continue to maintain large levels of invested assets derived from shareholder capital as well as from float, an approximation of the net amount of policyholder funds available for investment. Float was approximately $7.3 billion as of March 31, 1998.

Manufacturing, Merchandising and Services

Results of operations of Berkshire's diverse non-insurance businesses are shown in the following table. Dollar amounts are in millions.

                                                               First Quarter
                                                       -----------------------------
                                                           1998             1997
                                                       -------------   -------------
                                                       Amount    %     Amount    %
                                                       ------  -----   ------  -----
Revenues...............................................$  995  100.0   $  833  100.0
Costs and expenses.....................................   876   88.0      729   87.5
                                                       ------  -----   ------  -----
Earnings before income taxes and minority interest.....   119   12.0      104   12.5
Applicable income taxes and minority interest..........    50    5.0       42    5.0
                                                       ------  -----   ------  -----
Net earnings...........................................$   69    7.0   $   62    7.5
                                                       ======  =====   ======  =====

Revenues from these several and diverse business activities during 1998's first quarter were greater by $162 million (19.4%) than revenues during the corresponding 1997 period. A significant portion of the increase relates to two recent business acquisitions. On January 7, 1998, the acquisition of International Dairy Queen, Inc. ("Dairy Queen") was completed. Dairy Queen develops, licenses and services a system of approximately 5,800 Dairy Queen stores located throughout the United States, Canada and other foreign countries, which feature hamburgers, hot dogs, various dairy desserts and beverages. (See Notes to Interim Consolidated Financial Statements for additional information regarding this acquisition). A smaller acquisition occurred on July 1, 1997, when Berkshire acquired Star Furniture Company ("Star"). Star is headquartered in Houston, Texas and is a major retailer of home furnishings in that market.

Several of Berkshire's other businesses reported comparative revenue increases with the most significant reported by the Scott Fetzer group of companies. Somewhat offsetting these increases was a comparative decline at See's due to the timing of the Easter holiday which fell in the second quarter during 1998 whereas in 1997, the holiday fell in the first quarter.

Net earnings from this group of businesses were greater by $7 million (11.3%) than net earnings reported in the corresponding prior year period. The inclusion of Dairy Queen's and Star's results during 1998 account for about two-thirds of the increase. Most of Berkshire's other non-insurance businesses reported comparative earnings increases. The most significant comparative earnings decline arose at See's and was due to the timing of the Easter holiday.

Realized Investment Gain/Loss

Realized investment gain/loss has been a recurring element in Berkshire's net earnings for many years. Such amounts -- recorded when investments are sold, other than temporarily impaired or in certain situations, as required 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 $470 million and $21 million for the first quarter of 1998 and 1997, respectively.

While the amount of realized investment gain had a material impact on reported net earnings for the first quarter of 1998, the effect on the change in the Company's total shareholders' equity was minor. This is due to the fact that Berkshire carries most of its investments at market value, with the unrealized gains, net of tax, reported as a separate component of shareholders' equity. For the first quarter of 1998, the net increase in unrealized appreciation of investments was $2.3 billion, bringing the accumulated balance to $20.5 billion at March 31, 1998.

Financial Condition

Berkshire's balance sheet continues to reflect significant liquidity and above average capital strength. Shareholders' equity at March 31, 1998, was $34.8 billion, or $28,021 per equivalent share of Class A Common Stock.

* * * * *
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