Warren Buffett isn’t just beating the market — he’s becoming the market. In Berkshire Hathaway’s (BRK.B) (BRK.A) latest earnings report released this Saturday, the legendary investor revealed a massive $314.101 billion position in U.S. Treasury bills, further cementing the firm as the largest non-government holder of short-term U.S. debt. With the average T-bill yielding 4.36%, that means Buffett is now collecting over $13.7 billion every year — risk-free — just from lending money to Uncle Sam.
The Taxpayer’s Quiet Tab
As of March 31, 2025, the total Treasury bill market stood at $6.155 trillion, according to the U.S. Treasury Department. Berkshire now controls 5.1% of that total — up from 4.89% the previous quarter, when its holdings totaled $300.87 billion.
This uptick in Buffett’s share isn’t just a footnote. It means more than 1 in every 20 dollars borrowed through Treasury bills now flows through Berkshire, and the interest on those bills is effectively funded by taxpayers. There’s nothing particularly wrong with this, but it does speak to a larger theme currently dominating headlines: the national debt.
For the majority of the post-crisis years, the fed funds rates were sitting under 1% to help the economy recover in a post-2008 economy. But now rates are on the rise to combat inflation following the influx of money from covid relief. Paying off a national debt in the trillions of dollars when interest on that debt is largely not growing makes things relatively easy to turn around. But with rates near 4.5%, the yearly payment would be $1.8 trillion — or about 40% of all of the U.S. government's tax revenue.
This highlights the focus from the Trump administration to cut government spending and efforts to lower rates. $28 trillion in debt is coming due for refinance, so there’s a race to lower rates before that time comes. But the Fed is resisting lowering rates out of fear that inflation will begin running rampant again.
Don’t Miss:
Why Buffett Isn’t Buying Stocks
Berkshire’s growing pile of Treasuries is no accident. The company has now reduced its stock exposure for 10 straight quarters, even as Wall Street has continued to rally over most of that period. The S&P 500 Index ($SPX) sits just 7% below its all-time highs, buoyed by mega-trends in artificial intelligence (AI), quantum computing, and fusion breakthroughs.
But Buffett’s not convinced.
He’s been here before — when markets run hot, valuations stretch, and risk gets mispriced. Instead of betting on momentum, he’s stuffing Berkshire’s coffers with T-bills and cash, building a dry powder arsenal for when prices finally crack.
4.36% to Wait and Watch
The reasoning is simple: with T-bills yielding 4.36%, why chase overpriced equities or overpay for acquisitions? Buffett’s preference for patience isn’t new, but in today’s rate environment, it’s paying off at scale.
With Berkshire’s cash pile now exceeding $347 billion, and the lion’s share of it parked in ultra-liquid government debt, the firm is essentially earning more than some entire sectors of the economy — just for waiting.
Bigger Than the Central Bank
To put it in perspective: Berkshire now owns more Treasury bills than the Federal Reserve, whose balance sheet includes just $195 billion in short-term Treasuries. It’s a staggering fact—and one that underscores just how dominant Buffett’s financial position has become.
As others chase yield in volatile corners of the market, Buffett’s sitting back, earning nearly $1.14 billion per month in interest from the most creditworthy borrower on earth.
The Oracle Watches, While Markets Roar
Buffett’s massive stake in the U.S. debt market is more than a financial maneuver— it’s a signal that he sees few bargains in today’s environment, and that his best move is to stay liquid and let others overextend.
And when that next “fat pitch” finally comes, Buffett won’t need to scramble for funds. He’ll be ready, cash in hand, to deploy hundreds of billions into a market desperate for calm hands and deep pockets.
Until then, he’s earning billions in interest.
On the date of publication, Caleb Naysmith did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
