Berkshire Hathaway Surpasses Federal Reserve in T-Bill Holdings

Berkshire Hathaway, the conglomerate helmed by legendary investor Warren Buffett, has become the largest private holder of short-term U.S. government debt — and now holds more Treasury bills than even the U.S. Federal Reserve.

In its latest earnings report released Saturday, Berkshire revealed it now holds $314.1 billion in short-term Treasuries as of March 31, 2025. That figure exceeds the Fed’s holdings of approximately $195 billion and gives the company a 5.1% share of the $6.155 trillion T-bill market — up from 4.89% in the previous quarter. The increase represents a 21% rise in Berkshire’s proportional stake.

The move reinforces a cautious and deliberate strategy by Buffett, who has been steadily reducing stock exposure for 10 consecutive quarters. Berkshire’s cash and Treasury stockpile has grown even as U.S. equity markets remain buoyant, with the S&P 500 trading just 7% off its record high amid investor excitement around technologies like AI, quantum computing, and fusion energy.

Despite sitting on more cash than the GDP of some nations, Buffett has refrained from making major acquisitions in recent quarters, citing a lack of compelling investment opportunities at current valuations.

Two main factors are driving Berkshire’s pivot toward Treasuries: attractive yields and market caution. With short-term government debt offering average yields around 4.36%, T-bills have become a low-risk haven amid global economic uncertainty, inflation pressures, and geopolitical instability.

Berkshire’s position — now surpassing that of the Federal Reserve in short-term government debt — underscores the scale of its liquidity and the conservative outlook of its leadership. As markets continue to watch for signs of a broader correction, many investors view Berkshire’s moves as a potential bellwether for future shifts in sentiment.

By: DNU staff