Famed investor Warren Buffett now owns more Treasury bills than America’s central bank.
Through his holding company Berkshire Hathaway (BRK.A / BRK.B), Buffett has accumulated $234.6 billion U.S. worth of short-term Treasury bills, or T-bills as they’re known.
That compares with $195.3 billion U.S. in T-bills owned by the U.S. Federal Reserve as of July 31 this year.
Berkshire Hathaway mostly owns T-bills with maturities of three months or less, according to its quarterly financial report. The government sells T-bills for terms ranging from four to 52 weeks.
Buffett, age 93, continues to use Berkshire Hathaway’s record cash holdings of $277 billion U.S. to buy government securities even as he sells stocks.
Berkshire Hathaway has been a net seller of stocks for seven consecutive quarters.
That selling grew in the second quarter, with Buffett offloading $75 billion U.S. of equities, including reducing his stake in Apple (AAPL) by 50%.
Buffett has said in the past that during times of crisis or unfavorable market conditions, he’ll buy T- bills at auction.
Buffett has been taking advantage of the rise in Treasury yields over the past two years as interest rates have risen to lower inflation. A three-month T-bill currently pays about 5% interest.
The stock of Berkshire Hathaway has gained 17% over the last 12 months and currently trades at $427.02 U.S. per share.
