Berkshire Hathaway becomes major player in Treasury bill market

In the United States, Berkshire Hathaway has become the fourth-largest holder of Treasury bills in the world, according to recent estimates. As of the end of March 2025, the conglomerate's position in Treasury bills had grown to $314 billion, which represents approximately 5% of the entire outstanding market for short-term government bills. This dramatic growth over the past year has led Berkshire Hathaway to surpass other notable entities such as foreign banks and the Federal Reserve in terms of holdings. JPMorgan's report indicates that Berkshire's investments in T-bills have more than doubled over the previous year. The company, led by the renowned investor Warren Buffett, has been actively involved in purchasing these government securities at weekly auctions, often in substantial increments such as $10 billion. Notably, T-bills are offered with varying maturities, ranging from four to 52 weeks, providing investors with diverse choices. Despite a dip in interest rates in the past year, the yields on Treasury bills remain favourable. The T-bills are currently offering yields above 4% for those that mature in one month to one year, allowing Berkshire Hathaway to generate significant interest income from its expansive bond portfolio. This financial strategy aligns with Buffett's longstanding approach of ensuring that the conglomerate's cash reserves are effectively utilized, and that investments made are strategically sound. Buffett has remained optimistic and patient regarding the use of Berkshire's substantial cash equivalents. During the annual meeting held on May 2, 2025, he communicated his perspective on the importance of waiting for lucrative investment opportunities. He reaffirmed his belief that attractive offers will eventually present themselves, stating that while he recently considered investing nearly $10 billion, the right prospect had not yet emerged. Buffett emphasized that willing to deploy more capital when the right conditions align is an essential strategy for the firm, which has historically led to fruitful investments.