Berkshire Hathaway Holds $314 Billion in Treasury Bills

Berkshire Hathaway, steered by the investment acumen of Warren Buffett, has strategically accumulated a substantial stake in the U.S. Treasury bill market. This move signals a patient capital deployment strategy while the firm awaits significant investment opportunities.

Treasury Bill Powerhouse

Recent analysis from JPMorgan (JPM) indicates that Berkshire Hathaway (BRK) now holds approximately 5% of all outstanding U.S. T-bills, making it the fourth-largest global holder. By late March, Berkshire’s investment in these short-term debt securities reached $314 billion, more than doubling in the past year and exceeding holdings of many foreign banks and the Federal Reserve.

Buffett’s consistent T-bill purchases, sometimes in $10 billion lots at Treasury auctions, highlight this focus. These instruments, with maturities typically from one month to a year, have offered yields exceeding 4%, generating billions in annual interest for Berkshire. This approach primarily serves to preserve liquidity and maintain readiness for major investments.

Hunting for “Elephants”

At Berkshire Hathaway’s recent annual meeting on May 2nd, Warren Buffett, 94, reiterated his patient stance on deploying capital for a large acquisition. “We find something from time to time… It could be next week, five years from now, but not in fifty,&#822d; he remarked. Buffett mentioned a recent, unmaterialized $10 billion potential deal and confirmed readiness to invest up to $100 billion for a suitable, well-understood opportunity.

“Good opportunities don’t arrive in an orderly fashion,&#822d; Buffett noted. He will step down as CEO by year-end but remain chairman. Meanwhile, Berkshire’s growing cash reserve is viewed as a strategic asset, ensuring the company is primed for when the ideal investment appears.