Fisher Investments founder Ken Fisher analyzes recent stock market movements on “Making Money.”
Warren Buffett’s Berkshire Hathaway currently holds a vast amount of short-term U.S. Treasury securities, more than the amount held by the Federal Reserve.
In its latest earnings report, the bank said it holds $234.6 billion in short-term Treasury bills, up from $130 billion at the end of last year and more than the $195 billion in Treasury bills held on the Federal Reserve’s balance sheet.
Treasury bills are securities issued by the U.S. government with a minimum maturity of four weeks and a maximum maturity of 52 weeks. Investors who hold U.S. Treasury bills can earn interest on these bonds, and the income is exempt from state and local taxes.
Berkshire is increasing its holdings Treasury bills This comes after the conglomerate boosted its cash and cash equivalents (including Treasury bonds) reserves to a record $277 billion as of the end of the previous quarter, up from $189 billion at the end of the previous quarter.
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Warren Buffett’s Berkshire Hathaway now owns more Treasury bonds than the Federal Reserve. (Daniel Zucnik/WireImage/Getty Images)
The company achieved this by reducing its shareholding. Apple stock As of the end of June, the company’s holdings had roughly halved to $84 billion, but the tech giant remains its largest equity investment, more than double its roughly $41 billion stake in Bank of America.
| Ticker | safety | last | change | change % |
|---|---|---|---|---|
| BRK.A | Berkshire Hathaway | 648,887.99 | +7,887.99 |
+1.23% |
Buffett said at the company’s annual meeting in May that increasing the company’s cash and cash equivalents was important. Invest in more stocksConsidering the market situation.
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At the company’s spring annual meeting, Buffett said Treasury bonds are the “safest investment.” (Christopher Goodney/Bloomberg via Getty Images/Getty Images)
At the annual meeting, Buffett called government bonds “the safest investment” and has invested in them for many years. Berkshire Hathaway Turn them into cash.
The increase in yields on the company’s short-term Treasury bills, which currently stand at about 5.3% for one-month bills and 4.3% for 12-month bills, has helped Berkshire’s interest income increase by $2 billion, or 79%, in the first half of this year.
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