JP Morgan said that Berkshire Hathaway's purchase of US Treasury bonds is very aggressive, so the conglomerate controlled by Buffett currently holds a 3% share of the entire US Treasury bond market. In terms of product structure, the operating income of 10-30 billion yuan products is 401/1288/60 million yuan respectively.

JP Morgan fixed income strategist said in a report last week: "Over the years, Berkshire Hathaway has significantly increased its holdings of Treasury bonds, which account for more than international organizations, stable coin issuers, offshore currency market funds or local government investment pools market share."

This Wall Street bank estimates that Berkshire's $158 billion in Treasury bonds as of the end of March account for 3% of all outstanding short-term government bonds.

As Berkshire holds a large amount of cash - reaching a record $189 billion at the end of March, Buffett has become one of the most outstanding investors who can use higher interest rates. Buffett's enormous cash reserves, once a concern when interest rates were close to zero, now bring considerable returns to Berkshire as short-term rates exceed 5%.

Buffett buys $3 billion and $6 billion US Treasury bonds at the weekly US Treasury auction on every Monday, sometimes up to $10 billion. The maturity of the Treasury bonds sold by the government ranges from 4 weeks to 52 weeks.

Berkshire, which has a large business in the insurance industry, has always maintained sufficient liquidity. When it assigns excess cash to short-term instruments, it prioritizes safety over returns.

"Cash is very attractive."

Buffett believes that short-term Treasury bonds are the standard for measuring the value of other assets - the sharp rise in yields actually reduces the present value of any future returns.

"I just don’t see anything that attractive," the Berkshire CEO said at the company's annual meeting in May. "I'm not in famine or doing anything like that. It's just not attractive."

For most of the past 15 years, the Federal Reserve has kept interest rates at levels near zero and then launched its most aggressive rate hike action since the 1980s in March 2022 to combat high inflation. Since the Federal Reserve's last rate hike in July 2023, when it pushed the overnight federal funds rate to the highest level in more than 20 years, the rate has been in the range of 5.25% to 5.50%.

This investing legend recently said that he finds cash very attractive compared to other assets, especially stocks. He added that Berkshire's cash position may exceed $200 billion at the end of the second quarter.

"I don't mind building a cash position at this point," he said at Berkshire's shareholder meeting. "When I look at the alternative selections available on the stock market and other things happening in the world, I think it's pretty attractive."