Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B) is the only largest non-public holder of U.S. Treasury payments, surpassing even the Federal Reserve’s personal holdings. As of the tip of the primary quarter of 2025, Berkshire managed about $305 billion in Treasury payments, whereas the Fed’s holdings had dropped to $195 billion.
This shift reveals a lot about Buffett’s tackle at this time’s funding local weather.
What Are Treasury Payments and Why Do They Matter?
Treasury payments (T-bills) are short-term debt securities issued by the U.S. authorities, with maturities starting from 4 weeks to 1 yr. They pay no periodic curiosity however are offered at a reduction, with the investor receiving the complete face worth at maturity—the distinction representing their return.
T-bills are thought of among the many most secure investments globally, backed by the complete religion and credit score of the U.S. authorities. They’re a most popular car for managing massive money reserves as a result of they’re simply purchased and offered and have a negligible default threat.
Berkshire Hathaway’s Treasury Invoice Holdings vs. the Federal Reserve’s
- Berkshire Hathaway: As of the tip of the primary quarter of 2025, Berkshire Hathaway’s filings confirmed $314 billion in T-bills, about 5% of the $6.15 trillion T-bill market. That is double its place of the earlier yr, with over $305,000 million of its money invested in short-term authorities debt.
- U.S. Federal Reserve: The Fed’s System Open Market Account (SOMA) reported $195.4 billion in U.S. Treasury payments as of July 2025. The Fed has been steadily lowering its T-bill holdings as a part of its steadiness sheet runoff, focusing extra on longer-dated Treasurys and mortgage-backed securities.
Why Is Berkshire Shopping for So Many Treasury Payments?
Security and Liquidity
Buffett prefers T-bills due to their security and liquidity. With inventory markets at elevated valuations and uncertainty looming over world financial progress, Buffett chooses to be affected person whereas in search of massive, engaging acquisitions.
Engaging Yields
Brief-term charges stay above 4%, permitting Berkshire to earn billions in curiosity earnings yearly whereas taking just about no credit score threat.
Strategic Choices
Holding T-bills provides Berkshire the flexibleness to deploy huge quantities of capital shortly when market dislocations or acquisition alternatives come up. Buffett has repeatedly emphasised the worth of with the ability to act decisively when the correct deal comes alongside. As he informed shareholders on the 2025 annual assembly, “Now and again, you come throughout one thing… We will likely be inundated with alternatives that we are going to be grateful now we have the money for.”
Market Situations
Buffett has publicly cited excessive asset costs and an absence of compelling acquisition targets as causes for holding money and T-bills. “Every part’s too costly,” he has mentioned.
Backside Line
Berkshire’s outsized T-bill place now exceeds that of the Federal Reserve, banks, and even many international central banks. For buyers, that is fairly a present of the worth of liquidity throughout unsure occasions and the significance of resisting the urge to chase threat when valuations are stretched.
