- Berkshire Hathaway purchased T-bills holding worth $229.5B
- It exceeds the holdings of the Federal Reserve with its $195.3B
- T-bills offer a lower yield than stocks and are now at 5.05%
- Warren Buffett remains a classic proponent of investing in T-bills
Berkshire Hathaway bought Treasury bills (T-bills) and fixed maturity securities, outperforming Federal Reserve holdings.
Details of Berkshire Hathaway’s Numbers
Warren Buffett purchased T-Bills, and his Berkshire Hathaway now owns $229.5B worth, which overtakes the Federal Reserve holdings with their $195.3B.
That said, Warren Buffett has been systematically selling off company stocks for many months, as we’ve written about in great analytics.
For example, despite Apple remaining its most significant investment, Berkshire cut its stake in Apple to $84.2 billion from $174.3 billion, marking three consecutive quarters of declines in Apple stock. And Bank of America was also hit with nearly $4 billion in cuts.
Why Berkshire Hathaway Treasury bills?
In the context of the recent stock market decline, Buffett’s strategy again seems very wise.
For one thing, inflated interest rates have made the usually low-yielding T-bills more profitable, namely providing a return of 5.05%, six-month bills at 4.68%, and 12-month bills at 4.18%.
Also, Warren Buffett is a consistent proponent of T-bills, and at a recent conference in May, describing them as “the safest investment there is,” which the recent stock market situation has only confirmed.
Conclusions
Not all big players are going to make big sales to buy Bitcoin during its volatility and in anticipation of a potential upswing after the US election.
Some are using more classic financial instruments but show a very sharp strategy that performs well even in the face of global volatility.
It will also be interesting to see his actions if Bitcoin becomes part of the US Treasury Reserve.
