Warren Buffett Pockets 5% of Total US Government Bonds

Warren Buffett, legendary investor and CEO of Berkshire Hathaway, is making waves again—this time with a massive move into US Treasury bills. His company now holds close to 5% of the entire T-bill market, a bold signal that even the Oracle of Omaha is favoring safety and liquidity over risk. With more than $300 billion allocated to short-term government debt, Buffett’s shift is sparking major discussions across traditional and crypto markets alike about the future of investing.

Warren Buffett’s Massive Bet on US Government Bonds

As of March 2025, Berkshire Hathaway holds $300.87 billion in US Treasury bills—equivalent to 4.89% of the $6.15 trillion T-bill market. That means Berkshire now controls almost one out of every twenty dollars in circulation in short-term US government debt. To put it another way, Buffett’s firm owns more T-bills than the Federal Reserve, which holds just over $195 billion.

According to recent filings, this portfolio includes $14.4 billion in cash equivalents (T-bills maturing in under three months) and $286.47 billion in short-term investments, all tied to US Treasuries. Buffett is turning away from stocks and other high-risk assets in favor of good old-fashioned government debt—avoiding equities, junk bonds, and even crypto.

Why Is Buffett Choosing Government Bonds Over Stocks?

Buffett’s decision is rooted in his well-known investment strategy: prioritize safety when the market feels overheated. Treasury bills offer low-risk, stable returns and come with a tax advantage, as the interest they generate is exempt from state and local taxes.

With T-bill yields ranging from 4.36% to 5% in early 2025, Berkshire could earn around $12 billion in annual interest—roughly $3 billion every quarter. For Buffett, it’s a low-risk, high-liquidity play while he waits for better opportunities. In fact, he hasn’t made a major acquisition in over two years, frequently stating that everything is simply too expensive.

What Does This Mean for Markets and Investors?

This isn’t just a portfolio move—it’s a statement. When Warren Buffett shifts billions into government bonds, markets take notice. Here’s why his decision matters:

• Risk Aversion: It signals caution. Buffett may see increased risks or overvaluation in the stock market.
   
• Investor Sentiment: His influence could trigger broader interest in bonds and safer assets.
   
• Interest Rate Forecasts: Locking in 5% yields suggests Buffett expects rates to stabilize or decline soon.
   
• Strategic Patience: This move provides flexibility to deploy capital quickly when more favorable opportunities arise.
   

For everyday investors, Buffett’s strategy is a powerful reminder that preserving capital can sometimes be just as important as growing it.

What Crypto Investors Can Learn from Buffett’s Move

While Buffett isn’t a fan of crypto, his shift into safe, liquid assets offers a valuable takeaway for digital asset investors. The key lesson here? Risk management matters—especially during volatile or uncertain times. Crypto traders can apply this mindset to protect their capital and stay agile in fast-changing markets.

Conclusion

Warren Buffett’s decision to load up on nearly 5% of all US Treasury bills marks a defining moment in today’s investing landscape. It reflects his cautious outlook and unwavering focus on capital preservation. Whether you’re in stocks, crypto, or cash, there’s a universal takeaway: knowing when to play defense is just as crucial as knowing when to go on offense.

Read Also: Warren Buffett Says Japan Is Not Worth Investing In, But He's Worth $23 Billion?

FAQ

Why did Warren Buffett invest so heavily in US Treasury bills?
Buffett values safety and liquidity, especially when he believes stocks are overpriced. Treasury bills offer stable, low-risk returns that align with his cautious outlook.

How much of the US Treasury bill market does Berkshire Hathaway control?
As of March 2025, Berkshire holds $300.87 billion in T-bills—about 4.89% of the total $6.15 trillion market.

Does this mean Buffett is bearish on stocks?
Not entirely, but he’s clearly cautious. Buffett prefers holding safe assets and cash when market valuations are high or risks are rising.

What can crypto investors learn from this move?
Buffett’s focus on safety and liquidity underscores the importance of risk management—an essential principle for both traditional and digital assets.

Are Treasury bills a smart investment for everyone?
Treasury bills are ideal for conservative investors seeking safety and stability. But individual choices should always align with personal goals and risk tolerance.