{"id":1470339,"date":"2024-06-09T20:55:00","date_gmt":"2024-06-10T00:55:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1470339"},"modified":"2024-06-09T20:55:00","modified_gmt":"2024-06-10T00:55:00","slug":"warren-buffett-controls-3-of-treasury-bill-market-more-than-international-organizations-stablecoin-issuers","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/warren-buffett-controls-3-of-treasury-bill-market-more-than-international-organizations-stablecoin-issuers\/1470339\/","title":{"rendered":"Warren Buffett Controls 3% Of Treasury Bill Market, More Than “International Organizations, Stablecoin Issuers …”\u00a0"},"content":{"rendered":"

Warren Buffett Controls 3% Of Treasury Bill Market, More Than “International Organizations, Stablecoin Issuers …”\u00a0<\/span><\/p>\n

\n

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.<\/p>\n

At Berkshire’s annual meeting in May<\/a>,\u00a0Buffett told the audience,\u00a0“It’s a fair assumption” that its cash pile would exceed $200 billion at the end of this quarter amid the\u00a0dearth of big-ticket deals due to very few\u00a0opportunities.\u00a0<\/p>\n

Buffet’s growing cash and or cash\u00a0equivalents stockpiles intrigued fixed-income analysts at JPM, including a team led by\u00a0Teresa Ho, who wrote in a recent note to clients that\u00a0Berkshire Hathaway keeps excess cash primarily invested in T-bills.\u00a0<\/p>\n

<\/a><\/p>\n

“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.\u00a0<\/p>\n

She continued, “Berkshire Hathaway currently holds more T-bills than international organizations, stablecoin issuers, offshore MMFs, or LGIPs.”\u00a0<\/p>\n

Berkshire Hathaway’s current cash position is about 17.5%, which is in line with its\u00a0long-term average when measured against the firm’s total assets. Since 1997, the firm has\u00a0kept cash on its balance sheet at an average of 13%.\u00a0<\/p>\n

Current figures from Bloomberg show Berkshire’s\u00a0cash and cash equivalents total $188 billion.\u00a0<\/p>\n

<\/a><\/p>\n

“We’d love to spend it, but we won’t spend unless we think there’s really something that has very little risk and can make us a lot of money,” Buffett said at last month’s annual meeting.\u00a0<\/p>\n

Buffett and his companies are cautious about finding deals as the high-for-longer interest rate environment unfolds, especially after Friday’s screaming hot payrolls data<\/a> forced Citi to shift its first rate cut forecast from July to September.\u00a0<\/p>\n

*CITI CHANGES FIRST FED RATE-CUT FORECAST TO SEPTEMBER FROM JULY<\/p>\n

These things have become a total joke. Changing your “forecast” every month has zero value to anyone<\/p>\n

\u2014 zerohedge (@zerohedge) June 7, 2024<\/a><\/p>\n

Fed swaps are only pricing in 1.58 cuts through the end of the year.\u00a0<\/p>\n

<\/a><\/p>\n

The absence of deals will only mean\u00a0Berkshire’s giant cash and\u00a0cash equivalents pile will continue growing until valuations become more attractive.\u00a0<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nSun, 06\/09\/2024 – 16:55<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/warren-buffett-controls-3-treasury-bill-market-more-international-organizations-stablecoin<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Warren Buffett Controls 3% Of Treasury Bill Market, More Than “International Organizations, Stablecoin Issuers …”\u00a0 Berkshire Hathaway has struggled to find sizable deals in recent…<\/p>\n","protected":false},"author":0,"featured_media":1470340,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[1],"tags":[],"class_list":["post-1470339","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/pbimBl-6av9","jetpack_featured_media_url":"https:\/\/bugaluu.com\/news\/wp-content\/uploads\/sites\/3\/2024\/06\/2024-06-07_10-11-13-9n1hmB.png","_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1470339","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1470339"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1470339\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1470340"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1470339"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1470339"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1470339"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}