Warren Buffett Shifts $305.5 Billion to Treasuries, Drops Bank Stakes by 6.64%

Billionaire Warren Buffett has made a significant shift in his investment strategy, allocating $305.5 billion into safe-haven assets while reducing his stakes in major banking institutions. 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. This move indicates a strategic allocation of the firm’s cash reserves, with the majority now invested in U.S. Treasuries, followed by equity securities at $263.735 billion. Berkshire also maintains a cash position of $36.892 billion as of the last quarter, which ended in March.

The significant increase in Treasury holdings positions Berkshire Hathaway as a major player in the U.S. debt market. If Berkshire were considered a nation, it would rank as the 11th-largest foreign holder of Treasury Securities, surpassing several countries in terms of holdings. This shift towards safe-haven assets comes after Berkshire offloaded $3.23 billion worth of shares in three major U.S. banking giants during the last quarter. The firm fully exited its position in Citigroup by selling its remaining shares worth $1 billion. Additionally, Berkshire sold 48.7 million shares in Bank of America, valued at approximately $2.19 billion, and 300,000 shares in Capital One, worth roughly $46.489 million.

This strategic move by Buffett reflects a cautious approach to the current economic climate, prioritizing the safety and liquidity of U.S. Treasuries over equity investments in the banking sector. The decision to reduce stakes in Citigroup, Bank of America, and Capital One suggests a potential shift in Buffett's outlook on the banking industry, possibly due to concerns over market volatility or regulatory changes. By allocating a substantial portion of its cash reserves to Treasuries, Berkshire Hathaway aims to secure a stable return while maintaining flexibility for future investment opportunities. This move underscores Buffett's reputation for prudent investment decisions and his ability to navigate complex market conditions.