Berkshire Hathaway, headed by Warren Buffett, has gathered a record-breaking $234.6 billion of investments in short-term Treasury bills, surpassing the US Federal Reserve’s stockpiling. As of the Second quarter, Berkshire’s holdings of Treasury bills exceeded Fed’s $195.3 billion worth of shares.
Buffett’s strategic action comes after he sold significant stock positions, including Apple, before a recent global market crash. For the last seven quarters, Berkshire has been selling stocks and in the second quarter it made an accelerated sale worth $75 billion.
As such, this development has sparked speculation about Buffett’s economic outlook, with many interpreting his actions as bearish. He has historically invested in Treasury Bills during periods of crisis taking advantage of their stability.
Berkshire has total cash reserves over $276 billion together with short term investments. With fixed income payments on the rise due to increasing yields on Treasuries, Buffett’s war chest is able to churn out large returns.
