Berkshire Hathaway Inc. News Release



    OMAHA, NEB., March 1 /CNW/ - (NYSE:  BRK.A)(NYSE:  BRK.B)

    Our practice over the years has been to publish our annual report on a
Saturday morning. This schedule has allowed the public maximum time to read
our financial data and commentary while markets were closed. Even an
experienced financial analyst or journalist may find that reading the report
takes hours.

    We have also, of course, wanted our reporting to be accurate, which
considering our many subsidiaries takes a great deal of checking and
evaluation. Even so, we have been able in the past to prepare our annual
report in time to issue it on the Saturday preceding its due date.

    Beginning this year, however, the deadline for filing our 10-K with the
Securities and Exchange Commission has been shortened by fifteen days, and we
were not able to have it ready for a Saturday release. In the future, we will
aim for a Saturday (or late Friday afternoon) release of the annual report
whenever that is feasible. Our quarterly reports will regularly be released
after the close on the Friday preceding the due date for our 10-Q.

    We urge investors and reporters to read our 10-K and annual report, which
have been posted at www.berkshirehathaway.com. The limited information that
follows in this press release is not adequate for making an informed
investment judgment. With that caveat, here are the three initial paragraphs
of our Chairman's letter to shareholders, followed by summary financial data.

    "Our gain in net worth during 2006 was $16.9 billion, which increased the
per-share book value of both our Class A and Class B stock by 18.4%. Over the
last 42 years (that is, since present management took over) book value has
grown from $19 to $70,281, a rate of 21.4% compounded annually.

    "We believe that $16.9 billion is a record for a one-year gain in net
worth- more than has ever been booked by any American business, leaving aside
boosts that have occurred because of mergers (e.g., AOL's purchase of Time
Warner in 2000). Of course, Exxon Mobil and other companies earn far more than
Berkshire, but their earnings largely go to dividends and/or repurchases,
rather than to building net worth.

    "All that said, a confession about our 2006 gain is in order. Our most
important business, insurance, benefited from a large dose of luck: Mother
Nature, bless her heart, went on vacation. After hammering us with hurricanes
in 2004 and 2005 - storms that caused us to lose a bundle on super-cat
insurance - she just vanished. Last year, the red ink from this activity
turned black - very black."

    Earnings of Berkshire Hathaway Inc. and its consolidated subsidiaries for
the fourth quarter and twelve months ended December 31, 2006 and 2005 are
summarized below. Earnings are stated on an after-tax basis. (Dollar amounts
are in millions, except for per share amounts).

    
                                  Fourth Quarter           Full Year
                               --------------------- ---------------------
                                  2006       2005       2006       2005
                               ---------- ---------- ---------- ----------

    Net earnings...............   $3,583     $5,130    $11,015     $8,528
    Investment and derivative
     gains/losses..............      715      3,287      1,709      3,530
                               ---------- ---------- ---------- ----------
    Operating earnings.........   $2,868     $1,843     $9,306     $4,998
                               ---------- ---------- ---------- ----------

    Net earnings per Class A
     equivalent share..........   $2,323     $3,330     $7,144     $5,538
    Investment and derivative
     gains per Class A
     equivalent share..........      464      2,134      1,108      2,292
                               ---------- ---------- ---------- ----------
    Operating earnings per
     Class A equivalent share..   $1,859     $1,196     $6,036     $3,246
                               ---------- ---------- ---------- ----------

    Average Class A equivalent
     shares outstanding........1,542,503  1,540,428  1,541,807  1,539,775
    

    Note: Figures for the Class B shares are 1/30th those shown for the Class
A.

    An analysis of Berkshire's operating earnings follows (dollar amounts are
in millions).

    
                                           Fourth Quarter     Full Year
                                           --------------- ---------------
                                            2006    2005    2006    2005
                                           ------- ------- ------- -------

      Insurance-underwriting...............  $867    $502  $2,485     $27
      Insurance-investment income..........   876     672   3,120   2,412
      Non-insurance businesses............. 1,075     721   3,748   2,683
      Other................................    50     (52)    (47)   (124)
                                           ------- ------- ------- -------
      Operating earnings...................$2,868  $1,843  $9,306  $4,998
                                           ------- ------- ------- -------
    

    In our earnings summary, we distinguish between what we call "operating
earnings" and investment and derivative gains/losses. Berkshire possesses a
huge reservoir (about $34.8 billion on December 31, 2006) of pre-tax
unrealized investment gains. The cashing of these in any given quarter (or the
realization of losses, for that matter) can materially distort net income
figures as well as comparisons between periods. We do not wish investors to
mistakenly focus on a bottom-line number affected by large investment gains
that do not stem from economic accomplishments during the reporting period and
that have no concurrent impact on the intrinsic value of the company. Both
trends in our operating businesses and their health are best judged by income
before investment gains or losses.

    Berkshire Hathaway and its subsidiaries engage in diverse business
activities including property and casualty insurance and reinsurance,
utilities and energy, finance, manufacturing, retailing and services. Common
stock of the company is listed on the New York Stock Exchange, trading symbols
BRK.A and BRK.B.

    Certain statements contained in this press release are "forward looking"
statements within the meaning of the Private Securities Litigation Reform Act
of 1995. These statements are not guaranties of future performance and actual
results may differ materially from those forecasted.

    Comment on Regulation G

    This press release includes certain non-GAAP financial measures. The
reconciliations of such measures to the most comparable GAAP figures in
accordance with Regulation G are included herein.

    Berkshire presents its results in the way it believes will be most
meaningful and useful, as well as most transparent, to the investing public
and others who use Berkshire's financial information. That presentation
includes the use of certain non-GAAP financial measures. In addition to the
GAAP presentations of net earnings, Berkshire shows operating earnings defined
as net earnings exclusive of investment and derivative gains/losses.

    Although the investment of insurance and reinsurance premiums to generate
investment income and investment gains or losses is an integral part of
Berkshire's operations, the generation of investment gains or losses is
independent of the insurance underwriting process. Moreover, under applicable
GAAP accounting requirements, losses can be created as the result of
other-than-temporary declines in value without actual realization or when
certain types of investments are marked-to-market through earnings. In sum,
investment and derivative gains/losses for any particular period are not
indicative of quarterly business performance.




For further information:

For further information: Berkshire Hathaway Inc. Marc D. Hamburg,
402-346-1400

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BERKSHIRE HATHAWAY INC.

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