How Warren Buffett’s Berkshire Hathaway Outpaced the Federal Reserve in Treasury Bill Ownership

Warren Buffett’s Berkshire Hathaway Inc. (BRK.A, BRK.B) is the single largest private holder of U.S. Treasury bills, surpassing even the Federal Reserve’s own holdings. As of the end of the first quarter of 2025, Berkshire controlled about $305 billion in Treasury bills, while the Fed’s holdings had dropped to $195 billion.

This shift reveals much about Buffett’s take on today’s investment climate.

What Are Treasury Bills and Why Do They Matter?

Treasury bills (T-bills) are short-term debt securities issued by the U.S. government, with maturities ranging from four weeks to one year. They pay no periodic interest but are sold at a discount, with the investor receiving the full face value at maturity—the difference representing their return.

T-bills are considered among the safest investments globally, backed by the full faith and credit of the U.S. government. They are a preferred vehicle for managing large cash reserves because they are easily bought and sold and have a negligible default risk.

Berkshire Hathaway’s Treasury Bill Holdings vs. the Federal Reserve’s

• Berkshire Hathaway: As of the end of the first quarter of 2025, Berkshire Hathaway’s filings showed $314 billion in T-bills, about 5% of the $6.15 trillion T-bill market. This is double its position of the previous year, with over $305,000 million of its cash invested in short-term government debt.
• U.S. Federal Reserve: The Fed’s System Open Market Account (SOMA) reported $195.4 billion in U.S. Treasury bills as of July 2025. The Fed has been steadily reducing its T-bill holdings as part of its balance sheet runoff, focusing more on longer-dated Treasurys and mortgage-backed securities.

Why Is Berkshire Buying So Many Treasury Bills?

Safety and Liquidity

Buffett prefers T-bills because of their safety and liquidity. With stock markets at elevated valuations and uncertainty looming over global economic growth, Buffett chooses to be patient while looking for large, attractive acquisitions.

Attractive Yields

Short-term rates remain above 4%, allowing Berkshire to earn billions in interest income annually while taking virtually no credit risk.

Strategic Options

Holding T-bills gives Berkshire the flexibility to deploy massive amounts of capital quickly when market dislocations or acquisition opportunities arise. Buffett has repeatedly emphasized the value of being able to act decisively when the right deal comes along. As he told shareholders at the 2025 annual meeting, “Every now and then, you come across something… We will be inundated with opportunities that we will be grateful we have the cash for.”

Market Conditions

Buffett has publicly cited high asset prices and a lack of compelling acquisition targets as reasons for holding cash and T-bills. “Everything’s too expensive,” he has said.

Bottom Line

Berkshire’s outsized T-bill position now exceeds that of the Federal Reserve, banks, and even many foreign central banks. For investors, this is quite a show of the value of liquidity during uncertain times and the importance of resisting the urge to chase risk when valuations are stretched.