Berkshire’s T-bill holdings now exceed those of the U.S. Federal Reserve, which currently maintains a portfolio of roughly $195 billion in short-term Treasuries
Berkshire Hathaway, led by Warren Buffett, released its latest earnings on Saturday — and the company’s growing mountain of cash and U.S. Treasuries continues to stand out. Buffett has expanded his holdings in short-term Treasury bills to a staggering $314.1 billion, cementing Berkshire’s position as the largest private holder of short-term U.S. government debt.
As of March 31, 2025, the entire T-bill market in the U.S. totaled $6.155 trillion. That means Berkshire now holds 5.1% of the market — up from 4.89% in the previous quarter, a 21% increase in its proportional stake. In dollar terms, Berkshire's holdings grew from $300.87 billion to $314.1 billion.
This move extends a long-running strategy in which Buffett has steadily accumulated cash while scaling back on stock positions. Even with recent turbulence tied to renewed trade tensions, major equity benchmarks remain strong. The S&P 500, for example, is trading just 7% below its all-time high. This strength is being driven in part by investor enthusiasm surrounding cutting-edge technologies like artificial intelligence, quantum computing, and fusion energy — trends that have helped fuel the current rally.
Still, this optimism has led to sky-high valuations across the board — from speculative startups to dominant tech firms such as those in the FAANG group. Buffett, known for his strict valuation discipline, continues to hold back. He’s long been known for waiting patiently for the “fat pitch” — the rare moments when prices fall to levels that meet his investment criteria. The growing cash pile at Berkshire signals that he hasn’t seen many of those opportunities lately.
Berkshire has now been reducing its stock exposure for 10 consecutive quarters. Combined with the expanding Treasury holdings, it suggests Buffett is preparing for a possible downturn or broader correction in the stock market.
Berkshire’s cautious approach reflects two primary factors: First, short-term government bonds are offering competitive yields. With the average T-bill yielding around 4.36%, they provide a safe and attractive parking spot for cash. Second, Buffett sees few bargains in today’s market. Despite having more cash than many nations’ entire economies, he has refrained from major acquisitions lately — likely due to rich valuations and a lack of compelling opportunities.
Bigger Than the Fed
In a striking development, Berkshire now owns more short-term Treasuries than the Federal Reserve itself, which holds about $195 billion worth. This highlights the massive scale of Berkshire’s liquidity — and reflects a cautious stance in an uncertain economic landscape. With global market volatility, inflation concerns, and ongoing geopolitical risks, many investors are watching Berkshire closely as a signal for when it might be safe to wade back into equities.
For now, Buffett appears content to sit on the sidelines. But with more than $300 billion in liquid assets at his disposal, any decision to move could quickly make waves across financial markets.