Buffett Is Making His 'Next Move' - Hoarding Short-Term Treasuries

According to the latest financial disclosure from Berkshire Hathaway, Warren Buffett has acquired nearly 5% of the U.S. short-term Treasury market, locking in $300.87 billion in short-term government bonds through Berkshire Hathaway.

By the end of March 2025, the total size of U.S. short-term Treasuries reached $6.15 trillion, meaning Buffett's massive holdings account for 4.89% of the circulating short-term Treasury.

A detailed breakdown in the report shows that Berkshire Hathaway holds $14.4 billion in short-term Treasuries classified as cash equivalents- those with remaining maturities of less than three months.

In addition, there is $286.47 billion allocated to short-term investments, all directly tied to short-term Treasuries. Combined, this amounts to a total of $300.87 billion. No stocks, no junk bonds, no cryptocurrencies- just traditional government bonds. The report, based on filings from Berkshire Hathaway, underscores Buffett's deep emphasis on safety and liquidity.

Berkshire's Short-Term Treasury Holdings Surpass the Fed

Buffett now holds more short-term Treasuries than the Federal Reserve, which currently holds just over $ 195 billion. This makes Berkshire Hathaway the largest holder of short−term Treasuries, surpassing even the world's most influential central bank- The Federal Reserve. This isn't a show of power- it's simply because Berkshire sits on more than $334 billion in cash, 90% of which is now held in short-term Treasuries.

What truly attracts Buffett is the yield. As of April 2025, short-term Treasuries offer a yield of about 4.359%, and this U.S. government-backed return is more appealing than what Buffett sees in the stock market. He hasn't made a major acquisition in over two years.

His reasoning is simple: Everything is too expensive. Even though Berkshire Hathaway has significant operations across insurance, energy, railroads, and consumer goods, Buffett can't find suitable acquisition targets at current prices. He isn't buying because he dislikes overpaying.

Even tech giants like Apple are participating in short-term Treasury investments, though on a much smaller scale. Apple holds about $30 billion in cash and cash equivalents, half of which ($15.5 billion) is invested in U.S. Treasuries. However, Buffett's accumulation is negligible.

Buffett Waits While Markets Decline

Everyone is watching for Buffett's next move. This year, trillions of dollars in stock market value have evaporated, with major indices far from their peaks. But while others panic, Buffett sits comfortably in his cash fortress, waiting for what he calls a "great opportunity."

Mead, a fund manager, who is also a big fan of Buffett, believes a key to Buffett's legendary investing career is having "access to real-time information," referring to Buffett's ability to gather the latest insights through Berkshire's vast business network. However, a move like loading Treasuries doesn't necessarily mean the market is about to crash- it just means he doesn't see anything worth buying.

Alex Morris, another Buffett fan, noted that Buffett's sheer scale of capital limits his options: With Berkshire Hathaway's market cap exceeding $1 trillion, even multi-billion-dollar deals barely move the needle.

Back in 2009, Buffett made his largest acquisition ever- Burlington Northern Santa Fe Railway for $26 billion. Today, the same amount would account for just 2.5% of Berkshire's market cap.

So while the market eagerly waits for Buffett to make his next big move, the Oracle of Omaha may just choose to simply sit on his mountain of short-term Treasuries- patiently collecting yields and biding his time.