Warren Buffett's Berkshire Hathaway Holdings Soar: Top Energy Picks with Up to 7% Yield

Warren Buffett's Berkshire Hathaway has a large cash reserve, which has been invested in short-term U.S. Treasuries. Berkshire Hathaway owns over $130 billion in U.S. Treasuries, with a yield of about 1.6%. Two energy picks with up to 7% yield include EnLink Midstream and ONEOK.

Berkshire Hathaway, under the leadership of Warren Buffett, has significantly increased its holdings in short-term U.S. Treasuries. According to recent U.S. Securities and Exchange Commission filings, Berkshire Hathaway's holdings in short-dated Treasuries increased from $286.472 billion in the fourth quarter of 2024 to $305.501 billion in the first quarter of 2025, marking a 6.64% increase over three months [3]. This substantial allocation reflects a strategic shift in Buffett's investment strategy, prioritizing the safety and liquidity of short-term U.S. Treasuries.

Berkshire Hathaway's significant investment in short-term Treasuries positions the company as a major player in the U.S. debt market. With a yield of about 1.6%, these investments offer a stable return while maintaining flexibility for future opportunities. This move comes as Warren Buffett has been reducing his stakes in major banking institutions. Berkshire Hathaway sold $3.23 billion worth of shares in Citigroup, Bank of America, and Capital One during the last quarter [3].

The decision to increase Treasury holdings and reduce banking stakes suggests a cautious approach to the current economic climate. Buffett's strategic allocation of cash reserves indicates a preference for safe-haven assets over equity investments in the banking sector. This approach underscores Buffett's reputation for prudent investment decisions and his ability to navigate complex market conditions.

Investors are increasingly steering clear of longer-term Treasuries amid volatility in bond yields and prices. Ultra-short bond ETFs have been among the most popular exchange-traded funds, with the iShares 0-3 Month Treasury Bond ETF (SGOV) and SPDR Bloomberg 1-3 T-Bill ETF (BIL) topping the list of investor flows in 2025 [1]. The 3-month T-Bill is currently paying above 4.3% annualized, while the 10-year is offering about 4.4% [1].

Warren Buffett's investment strategy aligns with the broader trend of investors favoring shorter-term fixed-income instruments. As volatility in the stock market remains high, investors are seeking stability in their portfolios. Berkshire Hathaway's cash reserve, now largely invested in short-term U.S. Treasuries, reflects this trend and positions the company to benefit from the current market conditions.

References:
[1] https://www.cnbc.com/2025/06/01/investors-big-short-treasury-bets-warren-buffett.html
[2] https://www.investing.com/news/analyst-ratings/ubs-lowers-berkshire-hathaway-stock-price-target-citing-eps-estimates-93CH-4078427
[3] https://www.ainvest.com/news/warren-buffett-shifts-305-5-billion-treasuries-drops-bank-stakes-6-64-2505/