Berkshire Hathaway (NYSE: BRK.A, BRK.B) May Report Best Quarter in Two Years Friday

Berkshire Hathaway Inc. (NYSE: BRK.A, BRK.B) may report its best quarter in at least two years using the metric preferred by the firm’s billionaire chairman Warren Buffett, according to Bloomberg on Thursday.

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Berkshire, which has a stock portfolio valued at more than $60 billion, reports its quarterly earnings on Friday.

About $11 billion in gains in Berkshire’s stocks and a recovery of derivative bets tied to equity markets caused book value, a measure of assets minus liabilities, to reverse after two quarters of declines, according to analysts and investors.

“It’s going to be a blockbuster,” said Glenn Tongue at T2 Partners LLC to Bloomberg. “It may well be the greatest dollar gain in book value in any quarter in the history of the company. Warren Buffett showed extraordinary discipline in the first quarter when all others were losing their heads.” Tongue’s firm’s largest holding is Berkshire shares.

Berkshire’s book value per share, the measure highlighted by Buffett in the first sentence of his annual letter to shareholders, has declined in four of the past five quarters, and 2008 marked only the second time since Buffett took over in 1965 that it dropped for a full year.

The value of shares Berkshire reported holding as of March 31 increased 23 percent in the second quarter.

Berkshire is the largest shareholder in American Express (NYSE: AXP), whose stock has risen 71 percent in the three months ending June 30. Buffett’s firm is also the biggest investor in Wells Fargo & Co. (NYSE: WFC), which has jumped 70 percent; Goldman Sachs (NYSE: GS), which rose 39 percent; Burlington Northern Santa Fe Corp. (NYSE: BNI), up by 22 percent; and Coca-Cola Co. (NYSE: KO), which has increased 12 percent.

Berkshire’s own stock rose 3.8 percent in New York Stock Exchange composite trading in the quarter. It reached $100,000 on Aug. 3, the highest since January. Berkshire’s record closing price is $149,200 on Dec. 10, 2007.

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