Warren Buffett, Flush With Cash, Also Owns More Treasury Bills Than the Federal Reserve

The Epoch Times Header

‘We won’t spend it unless we think they’re doing something that has very little risk and can make us a lot of money,’ Warren Buffett stated.

As Warren Buffett’s Berkshire Hathaway strategically sells shares of companies such as Apple for cash, it is parking hundreds of billions in U.S. Treasury bills (T-bills), and now owns more of them than the Federal Reserve.

In the second quarter, Berkshire purchased an additional $81 billion in T-bills, short-term U.S. government debt securities that range from four weeks to 52 weeks, bringing its total holdings to $235 billion, according to the firm’s earnings release on Aug. 3.

As a share of the roughly $5.7 trillion outstanding short-term debt securities, the Omaha-based investing titan owns 4 percent of all T-bills issued to the public.

The company started accumulating T-bills in the first quarter of 2022 when the Federal Reserve started raising interest rates.

By comparison, the Fed’s T-bill pile is $195.29 billion as of July 31, based on the institution’s data. To put this in perspective, however, the Fed still holds approximately $4.5 trillion in U.S. Treasury notes and bonds, with maturities from one to 10 years or longer. 

The Fed’s holdings of bonds and mortgage-backed securities ballooned over the past 15 years, starting with the financial crisis of 2008–09 and escalating during the COVID-19 pandemic, from around $800 billion in 2007 to a peak of almost $9 trillion 2022, according to data compiled by Statista. It has recently reduced its holdings to about $7.3 trillion, but remains the largest single buyer of U.S. Treasury securities in the world, by far, according to the Peter G. Peterson Foundation. 

While T-bills are typically unappealing to investors compared to higher potential yields available in the stock market, the Fed’s recent rate hikes have made them more attractive. In the aftermath of lifting the benchmark policy rate to a range of 5.25–5.5 percent, the return rates on these investments are the highest they have been since February 2007.

The one-month yield is about 5.3 percent. The six-month yield is around 4.9 percent, and the one-year yield is 4.43 percent.

By Andrew Moran and Kevin Stocklin

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Columns

Secession’s Hotel California

England’s King George III found out the hard way that the very genesis of the American ethos is running our own affairs liberated from bureaucratic control. 

Vaccine Induced AIDS is a Thing Now

Podcaster Liz Wheeler discusses a Yale Medical School report about mRNA COVID-19 vaccines causing what may now be determined to be "vaccine" induced AIDS.

Feral Pharma-Phile Libs Riot Over RFK Jr. Investigating SSRI Safety

The progressive meltdown ensued after Secretary RFK Jr. confirmed he is going to re-evaluate the scam that is SSRIs, which I have covered at AP previously.

Congressional Millionaires May Get DOGED!

Rumor says 163 members of Congress may undergo a forensic audit by DOGE to determine how their net worth so rapidly outpaced their $174,000 annual salaries.

Savory Schadenfreude: Lib Violins Out For Fired Bureaucrats Crying on TikTok

My friend asked me why I’m riding the Musk/Trump train. I’m not fully on board with Trump/Musk’s agenda and I don’t trust Musk further than I could throw him.

News

Buffett Offers Advice to Trump on Government Spending After Paying $26.8 Billion in Tax

In letter to shareholders, Warren Buffett reflected on Berkshire Hathaway’s successes while offering Trump admin some advice on stewardship of the U.S. economy.

Cartel-Linked Smugglers Arrested in US–Mexico Operation

An enforcement operation conducted as part of a bilateral cooperation between the US and Mexico led to disruptions and arrests in human smuggling operations.

Supreme Court Declines to Allow Trump Admin to Immediately Fire Watchdog Official

The U.S. Supreme Court on Feb. 21 declined to allow the Trump administration to immediately fire Office of Special Counsel chief Hampton Dellinger.

Grenell Outlines Trump’s Plan to Revamp the Kennedy Center

Richard Grenell, interim executive director of the Kennedy Center in Washington, outlined President Donald Trump’s vision for the performing arts venue.

Nation’s Biggest School Districts Stand to Lose Billions Over Trump’s DEI Order

Five largest U.S. public school districts to lose $5 billion in federal funds per year if they don't comply with Trump’s EOs barring ideologies such as DEI.

Los Angeles Mayor Removes Fire Chief Over Alleged Lack of Preparation for Palisades Fire

Mayor of Los Angeles, Karen Bass, removed city’s fire chief because chief had not prepared the dept to fight fires when they broke out earlier this year.

Inflation Expectations Jump to 30-Year High, Consumer Confidence Falls

U.S. consumer confidence tumbled to a 15-month low in Feb, as inflation fears surged and expectations for the broader economy and personal finances deteriorated.

Texas Measles Outbreak Grows to 90 Cases, Health Officials Say

A outbreak of measles cases in western Texas has grown to 90 cases since last month, according to new data released on Friday by state health officials.
spot_img

Related Articles

Popular Categories

MAGA Business Central