Berkshire Hathaway Surpasses Fed in U.S. Treasury Holdings Amid High Valuations

Berkshire Hathaway, led by Warren Buffett, holds nearly 5% of the US short-term Treasury bill market, surpassing the Federal Reserve's holdings. Berkshire has accumulated $300.87 billion in US Treasury bills, while the total market size is $6.15 trillion. This represents approximately $1 out of every $20 in circulation, highlighting Buffett's focus on safety and liquidity amid high stock valuations and global economic uncertainties.

In a move that underscores Warren Buffett's conservative financial strategy, Berkshire Hathaway has amassed an impressive $300.87 billion in U.S. Treasury bills, representing approximately 4.89% of the entire T-bill market. This significant holding, as disclosed in the latest financial reports, positions Berkshire Hathaway as a major player in the U.S. short-term debt market [1].

The bulk of Berkshire's T-bill holdings, $286.47 billion, is categorized as short-term investments, with the remaining $14.4 billion classified as cash equivalents. This substantial investment is particularly notable given the company's long-standing preference for liquidity and risk aversion, especially during periods of market uncertainty [1].

The total U.S. Treasury bill market stood at approximately $6.15 trillion at the end of March 2025, according to data from the U.S. Department of the Treasury's Monthly Statement of the Public Debt (MSPD). Berkshire's holdings represent nearly $1 out of every $20 in circulation, highlighting the company's significant influence in the market [1].

Buffett's strategic focus on T-bills is not isolated to Berkshire Hathaway. Other major corporations, such as Apple, also maintain substantial positions in Treasury securities, underscoring the appeal of these instruments as a safe haven for cash reserves [1].

Berkshire's massive T-bill holdings even surpass those of the U.S. Federal Reserve, which currently holds just over $195 billion in Treasury bills. This milestone further emphasizes Berkshire's dominant position in the short-term government debt market [1].

The rationale behind Berkshire's significant investment in T-bills is multifaceted. Firstly, the higher short-term yields offered by these instruments provide compelling risk-free returns compared to riskier equities and fixed-income alternatives. Secondly, the current dealmaking landscape, characterized by high valuations, has led Buffett to adopt a more conservative approach to major acquisitions [1].

As macroeconomic conditions evolve, investors are closely watching Berkshire Hathaway's capital allocation moves. Many are speculating about when the company will begin buying U.S. securities again, given the substantial "dry powder" it holds. While the stock market has experienced significant volatility this year, with trillions wiped off the market, any indication from Buffett could signal a potential turnaround [1].

For now, Berkshire Hathaway appears content to maintain its fortress of Treasury bills, awaiting what Buffett refers to as a "fat pitch." The company's strategic focus on safety and liquidity is a testament to its conservative investment philosophy, which has served it well in the face of market uncertainty [1].

References:
[1] https://www.barchart.com/story/news/31994538/warren-buffetts-berkshire-hathaway-now-owns-4-89-of-the-entire-u-s-treasury-bill-market