Berkshire Hathaway, headed by Warren Buffett, has acquired a substantial stake of 5.1% in the entire U.S. Treasury Bill market.
The Oracle of Omaha's War Chest: $300 Billion in Treasuries and Counting
Warren Buffett's Berkshire Hathaway (BRK.A, BRK.B) recently reported earnings, and the cash and Treasuries position is on a record-breaking increase. As of March 31st, 2025, Berkshire has ramped up its U.S. Treasury bills to an unprecedented $314.101 billion, making it the single largest non-government holder of short-term U.S. debt.
With the entire U.S. T-Bill market at $6.155 trillion, Buffett's gargantuan stake now represents a whopping 5.1% of the entire Treasury market - a 21% increase from the previous quarter when Berkshire's Treasury stake stood at 4.89%. The total dollar amount has also swelled from $300.87 billion last quarter.
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Buffett's move to hoard cash while gradually offloading equities continues a multi-year trend. Despite recent market pullbacks due to renewed tariff tensions, major indices remain elevated, with the S&P 500 Index (SPY) just 7% off its all-time highs. The market remains optimistic, driven by transformative trends like artificial intelligence (AI), quantum computing, and fusion energy.
However, exuberance has led to frothy valuations across the board. Buffett, known for his valuation hawkishness, is rarely caught chasing momentum. With valuations inflated and few enticing opportunities currently available, Berkshire's growing war chest suggests that Buffett is biding his time for broader market dislocations before reinvesting capital in earnest.
For ten consecutive quarters, Berkshire has been offloading stocks. This trend, coupled with its growing Treasury position, suggests that Buffett is anticipating further lows in the equities market.
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Berkshire's relatively cautious stance can be attributed to two primary factors: first, attractive short-term yields, with T-bills yielding around 4.36%; second, the scarcity of undervalued targets. Despite holding a cash trove larger than the GDP of many countries, Berkshire has largely avoided large-scale acquisitions in recent quarters, likely due to high asset valuations and a lack of compelling deals.
Surpassing the Federal Reserve
Perhaps most remarkably, Berkshire's T-bill holdings now surpass those of the U.S. Federal Reserve, which holds a portfolio of approximately $195 billion in short-term Treasuries. This milestone underscores the extraordinary size of Berkshire's position and serves as a testament to its colossal capital reserves. Buffett's massive stake in Treasury bills demonstrates a confident attitude towards risk in today's market, with trillions in market capitalization lost this year and persistent inflationary and geopolitical headwinds.
For now, the Oracle of Omaha seems content to sit it out. But with over $300 billion in highly liquid assets, any future buying spree by Buffett could make waves throughout the markets.
- By 2025, Berkshire Hathaway's Treasury holdings are expected to reach an unprecedented $314.101 billion, making it the single largest non-government holder of short-term U.S. debt.
- As of the last quarter, the average increase in Berkshire's Treasury position represents a 21% leap, with the total dollar amount rising from $300.87 billion.
- In anticipation of further market dislocations, Berkshire has been gradually redeploying its capital away from equities and towards Treasuries, a move that suggests a tentative approach to investing in the current business environment.
- Presently, Buffett's massive T-bill holdings exceed those of the U.S. Federal Reserve, underscoring Berkshire's colossal capital reserves and position in the Treasury market.
