According to the latest public information from Berkshire Hathaway, the investment company of investment guru Warren Buffett, the company currently holds up to $300.8 billion in short-term U.S. Treasury Bills, not only occupying nearly 5% of the total short-term Treasury market but also significantly exceeding the Federal Reserve's short-term Treasury holdings.
Buffett's Hands Full of Treasury Bills
According to the latest data from the U.S. Treasury, the total U.S. Treasury scale has reached $36.65 trillion, of which marketable securities are approximately $28.59 trillion, and non-marketable securities are about $8.06 trillion. Among marketable securities, the total scale of short-term Treasury Bills (with a maturity of 1 year or less) is approximately $6.1 trillion, accounting for 21.3%.
By this calculation, Berkshire Hathaway's approximately $300 billion in short-term Treasury Bills already occupy 4.94% of the U.S. short-term Treasury market, meaning that for every $20 of short-term Treasury Bills in the market, $1 belongs to Buffett.
Meanwhile, Berkshire's holdings have also exceeded the Federal Reserve's short-term Treasury holdings. According to public information, the Federal Reserve currently holds about $195 billion in T-Bills, occupying only 3.2% of the T-Bills market, which is about $100 billion less than Berkshire.
What Insights Does Buffett's Treasury Holdings Provide?
As a traditional hedging asset, Berkshire Hathaway's massive holdings of short-term Treasury Bills reflect Buffett's cautious attitude towards the current market environment. Analysts point out that this strategy may be based on the following considerations:
- Defense Against Economic Uncertainty: The global economy faces multiple challenges in 2025, including inflationary pressures, geopolitical risks, and potential economic recession concerns. T-Bills, as one of the safest global assets, have near-zero default risk, short terms, and high liquidity, providing capital preservation for Berkshire.
- Concerns About High Stock Market Valuations: In fact, Berkshire has been continuously reducing its stock holdings (including Apple, Bank of America, etc.) and turning to the Treasury market. Analysts previously believed this indicates Buffett thinks current stock market valuations are high and lack attractive investment opportunities.
- Maintaining Flexibility for Opportunities: The $300 billion in T-Bills also provides Berkshire with ample "ammunition", allowing Buffett to act quickly when the market drops or low-valuation assets emerge, such as acquiring companies or increasing stock holdings. For example, Buffett previously made large-scale investments using cash reserves during the 2008 financial crisis.
- Steady Return on Earnings: In 2024-2025, T-Bills' annualized yield is around 4.3%-5.3%, higher than past low-interest environments. Berkshire's T-Bills holdings can generate about $13-16 billion in interest income annually, providing stable cash flow.
