The Blubber

Berkshire Hathaway (BRK.A)(BRK.B), Warren Buffett’s investment powerhouse, released its latest earnings on Saturday, revealing that its cash and Treasury holdings have reached unprecedented heights. As of March 31, 2025, Berkshire has amassed a staggering $314.1 billion in U.S. Treasury bills, cementing its role as the largest non-government holder of short-term federal debt.

That total now represents 5.1% of the entire $6.155 trillion U.S. T-bill market — up from 4.89% the previous quarter, a 21% increase. Buffett’s Treasury pile has grown from $300.87 billion just three months ago, highlighting a consistent shift away from equities toward ultra-safe assets.

This marks the continuation of a years-long trend at Berkshire: stock sales and cash accumulation. Despite recent turbulence tied to renewed tariff frictions, the S&P 500 remains near record territory, buoyed by optimism around AI, quantum tech, and fusion energy. But with lofty valuations permeating everything from speculative startups to megacap names like Apple and Amazon, Buffett appears unconvinced by the current price tags.

Long known for his conservative discipline and refusal to chase market euphoria, Buffett’s growing cash position signals that he’s still waiting for what he calls a “fat pitch” — a market environment where opportunities are both clear and attractively priced.

Berkshire has now trimmed its equity exposure for 10 consecutive quarters. The firm’s expanding investment in short-dated Treasuries, coupled with reduced stock holdings, suggests that Buffett sees limited upside in today’s market and is preparing for more favorable entry points down the road.

What's Driving Buffett's Strategy?

Two primary factors appear to be shaping Berkshire’s cautious stance:

1. Attractive Short-Term Yields: With T-bills offering yields around 4.36%, the risk-free return is now compelling enough to park capital without urgency. For Buffett, that beats overpaying in overheated markets.
2. Lack of Bargains: Despite sitting on a war chest the size of a small nation’s GDP, Berkshire has refrained from pursuing major acquisitions recently — likely deterred by inflated asset prices and a dearth of undervalued targets.

Berkshire Outpaces the Fed

Perhaps most astonishing: Berkshire’s T-bill holdings now eclipse those of the Federal Reserve itself, which holds roughly $195 billion in short-term Treasuries. This milestone underscores just how massive Buffett’s Treasury position has become — and just how cautious the legendary investor remains.

With persistent inflation, geopolitical stress, and significant market losses already seen this year, Buffett’s defensive stance is increasingly viewed as a market barometer. Investors continue to monitor his moves as a signal for when it may be time to reenter risk assets.

For now, Buffett appears content sitting on the sidelines. But with over $300 billion in liquid firepower, any future deployment of capital from Berkshire could move markets in a hurry.