– Warren Buffett Controls 3% Of Treasury Bill Market, More Than “International Organizations, Stablecoin Issuers …”:
Berkshire Hathaway has struggled to find sizable deals in recent quarters, leaving Warren Buffett sitting on a mountain of cash and cash equivalents. According to JPMorgan analysts, Buffett now wields control over a staggering 3% of the entire US Treasury Bill market.
At Berkshire’s annual meeting in May, Buffett told the audience, “It’s a fair assumption” that its cash pile would exceed $200 billion at the end of this quarter amid the dearth of big-ticket deals due to very few opportunities.
Buffet’s growing cash and or cash equivalents stockpiles intrigued fixed-income analysts at JPM, including a team led by Teresa Ho, who wrote in a recent note to clients that Berkshire Hathaway keeps excess cash primarily invested in T-bills.
“Over the years, their T-bill position has grown so large that, as of March-end, it owned $158bn in T-bills, comprising 3% of the market,” Ho said.
She continued, “Berkshire Hathaway currently holds more T-bills than international organizations, stablecoin issuers, offshore MMFs, or LGIPs.”
Berkshire Hathaway’s current cash position is about 17.5%, which is in line with its long-term average when measured against the firm’s total assets. Since 1997, the firm has kept cash on its balance sheet at an average of 13%.
Current figures from Bloomberg show Berkshire’s cash and cash equivalents total $188 billion.
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