• Berkshire Hathaway now holds $229.5 B in sovereign securities, which is more than the Federal Reserve’s $195.3 B.

  • Warren Buffett’s firm reduced its Apple stake to $84.2 B while increasing cash to $277 billion.

  • The U.S. government issued over $2T in bonds and bills in 13 months to cover the cash shortfall.

The fact that Warren  Berkshire Hathaway currently owns more US tax securities than the Federal Reserve indicates a change in policy. In the first half of the year, the company purchased cash coins valued at $229.5 billion. This amount exceeds the Reserve's $195.3 billion in assets. His decision emphasizes how important it is to be safe and have cash on hand, even during difficult times.

Berkshire's cash balance reached a record high.

Besides boosting liquidity, Berkshire has also made changes to its stock portfolio. The firm cut its stake in Apple from $160 billion to $84.2 billion. Apple still remains Berkshire’s largest equity investment. This marks the third quarter in a row that Berkshire has reduced its Apple holdings.

https://twitter.com/unusual_whales/status/1823200554937663925 Vital Stock Sales and Market Strategy

Berkshire Hathaway has also sold around $4 billion worth of Bank of America stock in just 12 days. These sales, along with the reduction in Apple shares, have greatly increased the firm’s cash reserves. The total value of these sales is about $75 billion. This raises the question: Is Buffett preparing Berkshire to take advantage of potential opportunities if the equity price declines?

The U.S. administration's role in the rising demand for Treasury coins is important too. In the past 13 months, the federal regulatory body has issued more than $2 trillion in T-bills to investors. This strategy helps manage the budget deficit and rising interest payments. 

Impact of Treasury Release on Finance

Some experts argue that this increase in T-bill issuance acts like a form of quantitative easing. This strategy reduces the interest rate risk for investors. Experts estimate it has lowered 10-year yields by about a quarter of a percentage point over the last year. This reduction has effects similar to cutting the federal funds rate by one point, which impacts overall market dynamics.

As Berkshire Hathaway continues its strategic changes, the interaction between government policy and investor behavior remains crucial in financial markets.

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