Buffett Invests in T-bills instead of Stocks, Waits for Bad Stuff to Happen..loves 5% - all said at the annual meeting.

[aja8888]

Treasury bills are now all the rage at Berkshire Hathaway. They have been earning between 5.0% and 5.5% since mid-2023, and Warren Buffett decided they’re a great deal, rather than stocks at current prices, and loaded up on them.

At the end of March, the huge conglomerate held $153 billion in T-bills, up by $24 billion from three months earlier, and up by nearly $50 billion from March 2023, and up by $86 billion from March 2022 ($67 billion), according to BRK’s 10-Q filings. The year 2022 was when T-bills began paying a noticeable interest once again.

Buffett Invests in T-bills instead of Stocks, Waits for Bad Stuff to Happen, Cash is King at 5%-plus | Wolf Street

Buffet has unloaded some of his Apple holdings .....is he gone MAD or just fell in love with 5+% as part of the stash??‍?

 

[Chuckanut]

Glad to see Buffet has caught up with this group.

 

[Closet_Gamer]

$153B at 5% … $7.65B per year.

Wow.

 

[aja8888]

I wonder if he is secretly a member here...LOL!

 

[aja8888]

$153B at 5% … $7.65B per year.

Wow.

$153 Billion...chicken feed as the Gov spends that on any given weekend.

 

[Koolau]

$153B at 5% … $7.65B per year.

Wow.

Not a fortune, but you can live on it.

 

[target2019]

Yes, but we were there first!

 

[street]

Wow! He has an interesting life.

 

[Dtail]

I wonder if he is secretly a member here...LOL!

Perhaps but he is past the when to take the SS decision and how much to convert to Roth......

 

[WhenIsItTime]

Glad to see Buffet has caught up with this group.

Yes, but why buy a stock that invests in T-bills?

Companies should use excess cash to invest to grow the business. When they can't do that then return cash to shareholders through dividends or stock buybacks. Earning 5% on T-bills to give 20% back to the fed's?

 

[pb4uski]

Yes, but why buy a stock that invests in T-bills?

Companies should use excess cash to invest to grow the business. When they can't do that then return cash to shareholders through dividends or stock buybacks. Earning 5% on T-bills to give 20% back to the fed's?

He is just temporarily parking dry powder in t-bills awaiting finding a good deal.

 

[dmpi]

Every stock market crash has Buffet on a buying spree while everyone else is running for cover. There's no secret how he has the cash to do it. The guy has incredible patience along with huge tolerance for risk.

 

[aja8888]

Every stock market crash has Buffet on a buying spree while everyone else is running for cover. There's no secret how he has the cash to do it. The guy has incredible patience along with huge tolerance for risk.

He bought into Oxy when they were chasing Anadarko and outbid Chevron for the assets. He is making a ton on the special preferreds paying 10% and the $2 warrants he ended up acquiring. He makes good deals on his terms with the Billions he has to play around with. Plus, he has been accumulating the Oxy common stock when it gets into the $50's.

 

[Chuckanut]

Every stock market crash has Buffet on a buying spree while everyone else is running for cover. There's no secret how he has the cash to do it. The guy has incredible patience along with huge tolerance for risk.

Not quite everyone else. IIRC, a number of people at this site did some thoughtful buying when the market was down nearly 20%.

Buy low, sell high does require some courage when we wander into lower territory. But, it seems to work.

 

[motley]

Perhaps but he is past the when to take the SS decision and how much to convert to Roth......

Yeah...on the other hand, I've seen posts (mostly on boglehead vs here) that go something like this so I have to wonder:

"Hi, I make $800K/yr, I have a gazillion dollars in my portfolio, three summer homes, just bought a brand-new yacht which means I have to delay buying another new Rolls Royce for a year, but the other five are running just fine so I can live with it....anyway, I'm thinking I should switch from Index Fund A to Index Fund B. Agree?"

 

[GrayHare]

Quite understandable to go bonds since Buffett turns 94 this week, and doesn't want to outlive his money.

 

[Texas Proud]

Yes, but why buy a stock that invests in T-bills?

Companies should use excess cash to invest to grow the business. When they can't do that then return cash to shareholders through dividends or stock buybacks. Earning 5% on T-bills to give 20% back to the fed's?

I doubt that it is a large pct of the portfolio....

But even MFs have a cash balance... except for the index funds...

Just looked at a Vanguard fund and they have $1.2 billion cash with $77 billion total assets...