Berkshire Hathaway holds more Treasury securities than the Federal Reserve

Warren Buffett’s Berkshire Hathaway (BRK.A, BRK.B) is the largest single holder of US Treasuries, surpassing even the holdings of the Federal Reserve itself. As of the end of the third quarter of 2025, Berkshire controlled about $360 billion in Treasury bills, while the Fed’s holdings had fallen to about $195 billion.

This shift reveals a lot about Buffett’s position on today’s investment climate.

What are treasury bills and why are they important?

Treasury bills (T-bills) are short-term debt securities issued by the United States government, with maturities ranging from four weeks to one year. They pay no periodic interest but are sold at a discount, with the investor receiving the full face value at maturity – the difference representing their return.

Treasury bills are among the safest investments in the world, and are backed by the full faith and credit of the U.S. government. They are a preferred means of managing large cash reserves because they can be easily bought and sold and have a negligible risk of default.

Berkshire Hathaway Treasuries Holding vs. Federal Reserve

• Berkshire Hathaway: As of the end of the third quarter of 2025, Berkshire Hathaway’s filings showed about $360 billion in T-bills, about 6% of the $6.15 trillion T-bill market. This doubled his position in the previous year.
• US Federal Reserve: The Fed’s System of Open Market Account (SOMA) held over $195 billion in U.S. Treasury securities as of November 2025. The Fed has been steadily reducing its holdings of Treasury bills as part of a runoff of its balance sheet, with a greater focus on longer-term Treasuries and mortgage-backed securities.

Why is Berkshire buying so many Treasuries?

Safety and liquidity

Buffett prefers Treasury bills because of their safety and liquidity. With stock market valuations rising and uncertainty looming over global economic growth, Buffett chose to remain patient while looking for large, attractive acquisitions.

Attractive returns

Short-term interest rates remain above 4%, allowing Berkshire to earn billions in interest income annually while assuming almost no credit risk.

Strategic options

Holding Treasury bills gives Berkshire the flexibility to quickly deploy massive amounts of capital when market disruptions or takeover opportunities arise. Buffett has repeatedly emphasized the value of being able to act decisively when the right deal comes along. As he told shareholders at the 2025 annual meeting: “Every now and then, you come across something…and we will be inundated with opportunities that we will be grateful we have the money for.”

Market conditions

Buffett has publicly cited rising asset prices and a lack of compelling acquisition targets as reasons to hold cash and Treasury bills. “Everything is expensive,” he said.

Bottom line

Berkshire’s huge position in Treasury bills now exceeds that of the Federal Reserve, banks, and even many foreign central banks. For investors, this is quite a demonstration of the value of liquidity during uncertain times and the importance of resisting the urge to chase risk when valuations are stretched.