Berkshire Hathaway’s cash and investments in short-term Treasuries rose to $147 billion at the end of the second quarter, underscoring Warren Buffett’s confidence in the stability of global financial markets despite the difficult political climate in Washington. FT.
The U.S. conglomerate — which owns railroad BNSF and insurer Geico — increased its holdings by nearly $17 billion in the second quarter, to fall just short of an all-time high of $149 billion set for 2021.
The revelation came days after ratings agency Fitch stripped the US of its award-winning triple-A rating. Analysts cited Washington’s repeated spats over the debt ceiling, which have pushed Treasury cash balances to dangerously low levels.
Buffett, who has led Berkshire for more than half a century, told CNBC last week that Fitch’s decision would not change the company’s investment strategy and that he was not worried about the US dollar or the Treasury market.
“Berkshire bought $10 billion in US Treasuries last Monday,” he said. “We bought $10 billion in Treasuries this Monday. And the only question for next Monday is whether we buy $10 billion in three-month or six-month bills.”
Berkshire has long held cash in short-term Treasuries to give the company the flexibility to pay catastrophic insurance losses and to have reserves ready to splash into billions of dollars in acquisitions.
2023-08-05 16:46:48
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