Berkshire Hathaway Holds More Treasury Bills Than Federal Reserve

Warren Buffett's Berkshire Hathaway has significantly increased its holdings of short-term U.S. Treasury bills, now totaling $234.6 billion, surpassing the Federal Reserve's $195 billion in T-bills. This marks a substantial rise from the $130 billion held at the end of the previous year. Treasury bills, which are government-issued securities with durations ranging from four weeks to 52 weeks, offer investors interest income that is exempt from state and local taxes. The surge in Treasury bill holdings coincides with Berkshire's record cash reserves, which reached $277 billion at the end of the last quarter, up from $189 billion previously. This increase was partly achieved by reducing its stake in Apple stock by nearly half, bringing it down to $84 billion, while still maintaining it as the company's largest stock investment. In contrast, Berkshire's investment in Bank of America stands at approximately $41 billion. During the company's annual meeting in May, Buffett emphasized the importance of building cash reserves over investing in stocks under current market conditions. He described Treasury bills as "the safest investment there is," reflecting his long-standing strategy of allocating Berkshire's cash into these securities. The company's increased T-bill holdings have also led to a notable rise in interest income, which surged by $2 billion, or 79%, in the first half of this year.