Warren Buffett Overtakes Federal Reserve in Treasury Bill Holdings

Berkshire Hathaway’s latest quarterly report, released on 3 August 2024, reveals a substantial increase in its Treasury Bill (T-Bill) holdings. As of 30 June 2024, the company holds $235 billion in short-term U.S. T-Bills, up significantly from $130 billion the previous quarter.

The total value of Berkshire Hathaway’s cash, cash equivalents, and T-Bills amounts to $271.5 billion, with T-Bills alone accounting for $237.6 billion. This places Berkshire Hathaway ahead of the Federal Reserve in terms of T-Bill holdings.

In comparison, the Federal Reserve’s latest data, as of 31 July 2024, shows it holds approximately $195.3 billion in T-Bills. This is notably less than Berkshire Hathaway’s current T-Bill holdings.

Warren Buffett has long praised Treasury Bills for their safety, despite their lower returns relative to more volatile investments. The Federal Reserve's interest rates, currently between 5.25% and 5.5%, have contributed to a rise in T-Bill returns. Recent rates are 5.21% for three-month T-Bills, 4.91% for six-month T-Bills, and 4.43% for twelve-month T-Bills.

In a related note, Representative Marjorie Taylor Greene has also increased her T-Bill investments. She purchased an additional $250,000 in T-Bills in August, following a $500,000 investment made in late July. This move contrasts with her position against Congressional stock trading.