Warren Buffett Owns 5% Of The Short Treasury T-Bill Market – Here's How You Can Get In
Investing
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If any investor has stood the test of time, it’s Warren Buffett, and with good reason. For years, the “Oracle of Omaha” has had a rock star-like presence in the investing world, and his annual Berkshire Hathaway shareholders meeting draws thousands of loyal fans who are investors. They were stunned at this year’s meeting when Mr. Buffett announced that he is stepping down at the end of the year as CEO of the investment giant. While he will remain Chairman of the Board and continue to have a voice in the day-to-day operations, his pre-announced successor, Greg Abel, will assume the CEO position at the end of the year.
24/7 Wall St. Key Points:
- Interest rates have drifted higher over the last 90 days
- Most on Wall Street agree that long-duration bonds are a bad place to be now
- The U.S. Treasury T-Bill market has maturities of one year or less
- Do you need to own T-bills in your account now? Why not contact a financial advisor near you to see if they are a suitable fit for your portfolio? Click here to get started finding one today. (Sponsored)
Long-time investors and Warren Buffett mavens are familiar with his quote, “His favorite holding for an S&P 500 stock is forever”, so it’s not surprising to report that for all of the success and stature Berkshire Hathaway has in the investment world, he has been a net seller of stocks for 10 straight quarters, to the tune of a stunning $174.4 billion. Buffett has now gone three consecutive quarters without buying shares of his favorite stock, which is, of course, Berkshire Hathaway (NYSE: BRK-B). This truly speaks to his unwavering desire to secure a good deal, especially when he had a favorable opportunity during the massive market sell-off earlier this year. During this time, he has accumulated a vast $347 billion in U.S. Treasury T-bills.
One asset that he has continued to load the boat on is scooping up short-term U.S. Treasury debt known as T-bills. Treasury Bills (T-bills) are short-term U.S. government debt obligations with maturities of one year or less. They are sold at a discount to their face value, meaning the investor pays less than the amount they will receive at maturity. The difference between the purchase price and the face value is the interest earned. Currently, the one-month T-bill yield is 4.29%, while the one-year maturity pays 4.125%.
The huge advantage of the short-term U.S. debt is that the yields are among the highest in the yield curve, and due to the short maturity, the risk of owning the paper is practically nil. We decided to screen the ultra-short maturity offerings, which have been getting massive inflows this year, so our readers could have a path to investing like Warren Buffett. It is worth noting that investors can purchase T-bills directly through a brokerage firm or a bank.
Why do we cover Warren Buffett’s holdings?
With a 15-year track record of covering Mr. Buffett and Berkshire Hathaway at 24/7 Wall St., we must keep our readers abreast of the financial powerhouse’s latest news. Many of our readers either own the shares or are considering a purchase, so it’s good to keep them updated regularly.
Here are some of the top funds that investors can purchase now to get involved in the short-term U.S. treasury market.
iShares 0-3 Month Treasury Bond ETF
The fund (NYSEArca: SGOV) will invest at least 80% of its assets in the component securities of the underlying index, and it will invest at least 90% of its assets in U.S. Treasury securities that BFA believes will help the fund track the underlying index. The index measures the performance of U.S. Treasury public obligations with a remaining maturity of three months or less.
The current yield is set at 4.79%
SPDR Bloomberg 1-3 T-Bill ETF
The fund (NYSEArca: BIL) invests substantially all, but at least 80%, of its total assets in the securities comprising the index and in securities that the Adviser determines have economic characteristics that are substantially identical to the financial characteristics of the securities that comprise the index. The index measures the performance of public obligations of the U.S. Treasury that have a remaining maturity of 1 month or more and less than 3 months.
The yield currently is posted at 4.76%
Vanguard Short-Term Bond Index Fund ETF Shares
While this fund has a more extended maturity profile, it has seen a stunning $4 billion in investor inflows already in 2025. This index (NYSEArca: BSV) includes all medium and large-sized issues of U.S. government, investment-grade corporate, and investment-grade international dollar-denominated bonds that have maturities between 1 and 5 years and are publicly issued. All of the fund’s investments will be selected through a sampling process, and at least 80% of its assets will be invested in bonds that are part of the index.
The current yield for the fund is set at 3.49%
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