Here's how big Warren Buffett's stake is in the entire T-bill market

By Steve Goldstein

Talk about key man risk.

According to analysts at JPMorgan, Berkshire Hathaway (BRK.B) controls 3% of the entire T-bill market. That's $158 billion in total.

"Berkshire Hathaway currently holds more T-bills than international organizations, stablecoin issuers, offshore [money-market funds], or [local government investment pools]," said fixed-income strategists led by Teresa Ho.

Chief Executive Warren Buffett seems to be in no hurry to part with those T bills. At the May shareholder meeting, he said Berkshire's $182 billion in cash and bills at the end of the first quarter will grow to more than $200 billion this quarter.

"We'd love to spend it, but we won't spend unless we think there really something that has very little risk and can make us a lot of money," said Buffett, according to a FactSet transcript.

"I don't mind at all under current conditions, building the cash position," he added. "I think when I look at the alternative of what's available in the equity markets and I look at the composition of what's going on in the world, we find it quite attractive."

The JPMorgan analysts said the markets will have no trouble digesting additional T-bill supply, pointing not just to Buffett but also money-market funds, the Fed, and stablecoin issuers if crypto legislation is passed.

-Steve Goldstein

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06-03-24 0710ET

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