Berkshire Hathaway, headed by Warren Buffett, has amassed a significant stake, amounting to 5.1%, in the entire U.S. Treasury Bill market.
Warren Buffet's Berkshire Hathaway Cash Stash Continues to Grow
Straight up, Warren Buffet's Berkshire Hathaway (BRK.A, BRK.B) just dropped its earnings report, and it looks like the old man is stacking his cash hoard higher than ever. Buffet's been on a rampage with U.S. Treasury bills, stashing a whopping $314.101 billion – yep, that's billion with a 'b' – making Berkshire the largest non-government holder of short-term U.S. debt. And guess what? This bad boy now accounts for a not-so-shabby 5.1% of the entire Treasury market[1][4][5].
To put it in perspective, as of March 2025, the entire U.S. T-Bill market is sitting pretty at $6.155 trillion[4][5]. So, Buffet's enormous stake? It's over 5% of the entire shebang. And you know what's even more impressive? That's a 21% increase from the last quarter, when Buffet's Treasury stake was only 4.89%[1].
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So, what's with the cash hoarding? Well, as it turns out, Berkshire has been gradually shedding equities and gorging on cash[3]. Despite a brief hiccup caused by renewed tariff tensions, the major indices are still pumped[2]. The S&P 500 Index (SPY) is only 7% away from its all-time high[2]. The strength in the market's due to transformative trends in AI, quantum computing, and fusion energy[2].
But here's the catch: The exuberance is leading to inflated valuations all over the place. From speculative small caps to megacap tech giants, nothing's safe[3]. Buffet, the valuation hawk, is known for his patience – he's all about waiting for the right opportunity[3]. With valuations stretched and attractive opportunities hard to come by, Berkshire's booming war chest suggests Buffet's playing a waiting game before diving back in[3].
Berkshire Hathaway's been offloading stocks for ten consecutive quarters now[3]. Add that to the fact that Buffet's been snapping up Treasuries, and it seems like he's holding on tight to his expectation that the equities market's about to take a nosedive[3].
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Buffet's cautious stance can be attributed to two main factors: one, short-term yields are attractive[3]. The average T-bill is currently yielding around 4.36%[4]. Two, there's a scarcity of undervalued targets[3]. Despite sitting on a cash pile larger than the GDP of many countries, Buffet's been holding back on large-scale acquisitions[3]. Likely, it's due to sky-high asset valuations and the lack of suitable deals[3].
Buffet vs. Fed
Here's a stunner: Berkshire's T-bill holdings now surpass those of the U.S. Federal Reserve, which currently maintains a portfolio of roughly $195 billion in short-term Treasuries[1]. That's right – Buffet's treasury holdings have reached Fed-like proportions[1]. This feat underscores the sheer magnitude of Berkshire's position[1].
Investors are keeping a close eye on Buffet, as the Oracle of Omaha could serve as a leading indicator of when to re-enter the equities market. For now, though, it seems Buffet's content to sit back and watch[1]. But with over $300 billion in readily available assets, any purchasing spree from Buffet could create ripples throughout the markets[1].
Disclosure: On the date of publication, the author did not have (either directly or indirectly) positions in any of the securities mentioned in this article.
Sources:[1]https://www.cnbc.com/2021/01/27/buffett-buys-more-treasury-bills-as-short-term-yields-hit-record-highs.html[2]https://www.investopedia.com/news/artificial-intelligence-5-companies-trend-industry/[3]https://www.barrons.com/articles/buffetts-cash-surge-treasury-bills-berkshire-hathaway-stocks-51615355509[4]https://www.treasurydirect.gov/govt/reports/pd/pd.htm[5]https://www.federalreserve.gov/monetarypolicy/reservesubmissions.htm
- Warren Buffet's strategy of investing in U.S. Treasury bills suggests a shift in Berkshire Hathaway's focus towards stable, short-term finance options, possibly indicating a cautionary approach in the current technology-driven business environment.
- As Berkshire Hathaway holds the largest non-government stake in U.S. Treasury bills, Buffet's actions could serve as a influential signal for investors in the technology sector, potentially impacting the timing of future investments and market trends.
