Warren Buffett has never been in a hurry to deploy capital. And this quarter, Berkshire Hathaway’s (BRK.B) (BRK.A) latest earnings report shows exactly how far that patience extends. The firm now holds $314.1 billion in U.S. Treasury bills — a position so large it represents 5.1% of the entire T-bill market, up from 4.89% last quarter.

When asked why Berkshire has continued building its Treasury stake while trimming equities, Buffett responded with a familiar yet pointed observation: “The one problem with the investment business is that things don't come along in an orderly fashion — and they never will.”

It’s a sentiment that underlines one of Buffett’s most consistent themes: in a world of short-term momentum and market noise, timing matters far less than price. He added, “We're running a business which is very, very, very opportunistic,” signaling that Berkshire isn’t merely parking cash — it’s waiting with intention.

From Stocks to T-Bills: A Tactical Retreat

Berkshire’s cash-heavy stance is no accident. The firm has now reduced its equity holdings for 10 consecutive quarters, even as major indices hover near record levels. The S&P 500 Index (SPY) remains less than 10% off all-time highs, buoyed by investor enthusiasm for technologies like artificial intelligence (AI) and quantum computing. But that optimism has pushed valuations well beyond levels Buffett tends to tolerate.

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The shift is stark. While other institutional investors chase momentum, Berkshire has become the largest non-government holder of short-term U.S. debt, even surpassing the Federal Reserve’s T-bill balance of roughly $195 billion.

Buffett’s reasoning is simple: he doesn’t see enough attractive opportunities to buy equities at current prices. And as he put it plainly, “We have made a lot of money by not wanting to be fully invested at all times.”

Yield Without Risk

Unlike equities, short-term Treasuries are offering predictable, risk-free income — currently averaging around 4.36%. For Buffett, that means Berkshire can earn meaningful returns while it waits for better entry points.

The current environment — marked by renewed tariff tensions, sticky inflation, and rising geopolitical uncertainty — offers little clarity on where markets are headed. Despite the market’s strength, volatility under the surface remains elevated. Buffett, known for avoiding speculation, reiterated that “nobody knows what the market is going to do tomorrow, next week, or next month.”

In that context, holding T-bills isn’t just about conservatism — it’s strategic optionality. With over $300 billion in liquid assets, Berkshire can act decisively when a rare dislocation presents itself. But until then, Buffett appears perfectly content to collect yield and sit on his hands.

Charlie’s Rule: Fewer Bets, Better Outcomes

Buffett also acknowledged how his late business partner Charlie Munger shaped this capital allocation discipline. “Charlie always thought we did too many things,” Buffett said. “He thought if we did about 5 things in our lifetime, we’d end up doing better than if we did 50.”

That philosophy, centered on selective action and outsized conviction, is particularly important at Berkshire’s scale. With $1.1 trillion in market cap, small investments are unlikely to move the needle. What matters is waiting for the “fat pitch” — and being ready to swing big when it comes.

Buffett’s latest remark — “Things get extraordinarily attractive very occasionally” — reflects this mindset. Rather than chase themes or follow the crowd, Berkshire continues to build liquidity in anticipation of the next great buying opportunity. And when that time comes, history suggests Buffett won’t hesitate.