As Buffett Patiently Waits for His Elephant, Berkshire Hathaway Now Owns 5% of the Entire Treasury Bill Market

Berkshire Hathaway’s investment in U.S. Treasury bills has expanded so dramatically that the conglomerate, led by Warren Buffett, is now the fourth-largest holder globally. According to estimates from JPMorgan, Berkshire owns roughly 5% of the total Treasury bill market—amounting to about $314 billion as of the end of March. This sizable stake surpasses the holdings of several major players, including foreign banks, the Federal Reserve, offshore money market funds, local government investment pools, and even stablecoin-related reserves.

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JPMorgan highlighted how Berkshire’s Treasury bill holdings have more than doubled over the past year. The firm’s approach to acquiring these short-term government securities is methodical and consistent—Buffett is known to make large purchases at weekly Treasury auctions, often in $10 billion increments. Treasury bills are available in a variety of maturities, typically ranging from four weeks to 52 weeks, and are considered one of the safest and most liquid investments available.

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Even though interest rates have edged down from the peaks seen in 2023, yields remain high enough for Berkshire to collect substantial interest income on its vast bond portfolio. Currently, Treasury bills maturing between one month and one year are offering returns exceeding 4%. For a company like Berkshire, which holds hundreds of billions in cash and equivalents, even modest returns translate into billions in annual income.

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At Berkshire Hathaway’s annual shareholders meeting last weekend—an event that marked six decades of Buffett’s leadership—the 94-year-old investing icon reaffirmed the importance of patience and readiness when managing such a massive cash reserve. Buffett emphasized that while the cash pile currently earns solid returns through safe instruments like T-bills, it ultimately serves as ammunition for future investment opportunities.

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“Every now and then you find something—and occasionally, very occasionally—but it will happen again,” Buffett told shareholders gathered at the event on May 2. “I don’t know when. It could be next week, it could be five years off, but it won’t be 50 years off. We will be bombarded with offerings that we’ll be glad we have the cash for.”

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This philosophy reflects Buffett’s long-held belief in maintaining financial flexibility. He sees cash not as a passive asset, but as a strategic tool. Rather than chasing speculative bets or chasing market trends, Buffett prefers to sit on the sidelines until a rare and compelling opportunity presents itself—one that is clearly understood, attractively priced, and offers long-term value.

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During the meeting, Buffett shared that Berkshire came close to executing a $10 billion investment recently but ultimately chose not to move forward. While he didn’t offer specifics on the nature of the potential deal, he stressed that good opportunities don’t always arrive in a predictable or convenient way.

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“We came pretty close to spending $10 billion not that long ago,” he said. “But we’d spend $100 billion if the right opportunity came along. I mean, those decisions are not tough to make when something is offered that makes sense to us and that we understand and offers good value.”

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This comment highlights one of the key challenges for Buffett and his team: the scarcity of truly great investment opportunities in today’s market. Even with their vast resources and access, Berkshire remains cautious, preferring to wait for moments of market dislocation or undervaluation rather than forcing action.

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Buffett’s decision to continue parking Berkshire’s cash in Treasury bills reflects both discipline and pragmatism. T-bills provide safety, liquidity, and now, thanks to elevated interest rates, a reasonable return. They also ensure that when the next big opportunity arises—whether it’s a distressed business, a market correction, or a major acquisition—Berkshire will be ready to act decisively.

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With Buffett stepping down as CEO at the end of the year, the strategy of holding massive amounts of cash in low-risk instruments appears to be part of the enduring legacy he’s leaving behind. It’s a blueprint for future leadership: stay patient, understand what you’re investing in, and be prepared to move boldly when the time is right.

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In the meantime, Berkshire continues to earn billions in interest while waiting for the next investment that fits its strict criteria. For Buffett, that’s not just acceptable—it’s a sign of strength.

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