Warren Buffett (Trades, Portfolio), through Berkshire Hathaway, has acquired nearly 5% of the U.S. short-term Treasury market, amounting to $300.87 billion. This significant holding represents 4.89% of the total short-term Treasury market, which stood at $6.15 trillion by March 2025. Berkshire's portfolio includes $14.4 billion in short-term Treasuries classified as cash equivalents and $286.47 billion in short-term investments linked to Treasuries, highlighting Buffett's preference for security and liquidity.
Currently, Berkshire Hathaway holds more short-term Treasuries than the Federal Reserve, which possesses slightly over $195 billion. The appeal for Buffett lies in the yield, with short-term Treasuries offering around 4.359% by April 2025, a more attractive return than current stock market opportunities. Buffett has refrained from major acquisitions for over two years, citing high prices as a deterrent.
Despite market volatility, Buffett remains patient, waiting for what he terms "ideal opportunities." His substantial cash reserves, primarily in short-term Treasuries, provide a strategic advantage to act decisively when the right moment arises.
Also check out:
