Warren Buffett holds more T-bills than Fed. What does this mean?

Published: Aug 07, 2024 Duration: 00:02:00 Category: News & Politics

Trending searches: will warren
[Music] Warren Buffett's company Burkshire hatway now holds more shortterm us treasury bills than even the Federal Reserve to put this into an Indian perspective it is like a big Indian company holding more short-term government bonds than the RBI yes in the first half of this year Burkshire hafe bought $ 229.5 billion worth of treasury bills surpassing the Federal Reserves $195.3 billion in the same this is a huge increase from the $130 billion birkshire held at the end of 2023 now investors around the world look to Warren Buffett for guidance on where to put their money so what does this move mean at berkshire's annual meeting in May Warren Buffett said treasury bills are the safest investment there is treasury bills or t- bills are short-term loans to the government they are sold at a discount and mature at their full value with terms ranging from 4 4 to 52 weeks now instead of paying interest directly The Profit comes from the difference between the purchase price and the amount received at maturity since T bills are backed by the government they are considered very low risk with the Federal Reserve keeping interest rates High the Returns on T bills have increased offering an annual returns of over 5% this could earn birkshire around $12 billion in risk-free gains each year Buffett's move towards steill suggest he has not found more appealing in Investments elsewhere especially given concerns about a possible recession and high inflation some see this as a sign that Buffett is cautious about the current state of the US Stock Market now overall Buffett strategy May remind investors of the importance of prioritizing safe secure returns during uncertain times like this video follow And subscribe to business standard for more

Share your thoughts