5 Reasons Investors Like Warren Buffett Love T-Bills (And You Might Too)

Warren Buffett is a legendary investor. So, when Berkshire Hathaway, where Warren Buffett is chairman and Greg Abel is CEO, makes an investment move, many take notice.

As of 2026, Berkshire Hathaway held more than $328 billion in short-term Treasury bills, otherwise known as T-bills.

With top investors leaning on T-bills, it's worth taking a closer look to determine if they make sense for your own portfolio as you start investing.

What are T-bills?

Treasury bills, or T-bills, are short-term investments that the U.S. Treasury backs. The bills are sold on terms ranging from 4 to 52 weeks.

The bills are sold either at face value or at a discount. But generally, most T-bills are sold at a discount. The bill's interest rate is calculated as the difference between the purchase price and the par amount (face value).

Investors who buy T-bills can wait to receive the face value at maturity. The other option is to sell the T-bill before it matures for less than face value.

How much in T-bills does Buffett own?

As of June 2026, Berkshire Hathaway held more than $328 billion in short-term Treasury bills.

Berkshire Hathaway is the largest single private/corporate holder of T-bills. To put it into perspective, the Federal Reserve currently holds over $542 billion in T-bills.

Why do investors like Buffett love T-bills?

Savvy investors have many reasons to love T-bills. Below is a closer look at why T-bills make an attractive opportunity for many investors.

1. They are incredibly safe

T-bills are backed by the full faith and credit of the U.S. government. For that reason, most investors consider T-bills an incredibly safe investment.

After all, the country would virtually have to fall apart for you to miss out on T-bill returns. For investors who value security and minimal risk, T-bills are difficult to beat.

2. Yields have increased

T-bill yields typically have relatively low interest rates. After all, the low risk yields a relatively low return. However, in recent years, T-bill yields have increased relative to their pre-2008 levels.

Recently, the one-year yield on T-bills has been hovering around 3.83%. On the other hand, yields were near zero in 2020.

3. They offer tax advantages

T-bills offer investors tax advantages. Specifically, you won't need to pay state or local income taxes on your T-bill earnings.

However, you will still have to pay federal taxes on the interest you earn from T-bills.

4. They come in a range of maturities

T-bills are short-term investment opportunities. You will find a range of maturities available, ranging from four weeks to 52 weeks.

The available maturities include four weeks, eight weeks, 13 weeks, 17 weeks, 26 weeks, and 52 weeks.

5. They can be sold easily

When you own a T-bill, you could wait for it to mature to receive interest earnings. However, there may be circumstances where you prefer to sell T-bills before they mature.

The good news is that it's easy to sell T-bills to other investors on the secondary market.

The sale process typically involves transferring the bill to a dealer or broker, who will then sell it on your behalf. Since liquidity matters to many investors, the opportunity to access funds quickly is a nice option.

Are T-bills right for you?

T-bills are a worthwhile investment choice for some. But, of course, these investments won't suit everyone's needs.

For investors who value safety and are comfortable with relatively low yields, T-bills offer a good solution. You can put your funds to work without having to worry about losing your original investment.

It's an especially good option for a portion of your investment portfolio that you would like to keep as liquid as possible. Investing some of your portfolio in T-bills could provide a buffer against stock market volatility.

However, investors seeking to build long-term wealth may leave too much on the table by relying too heavily on T-bills. Those looking for higher yields who are OK with taking some risk might prefer to invest money in the stock market.

It's worth noting that Buffett typically leans on a large stash of T-bills when he spots an opportunity in the stock market. Buffett's war chest of T-bills allows him to make a big investment play at a moment's notice, which means T-bills are treated like a safe way to store and grow funds temporarily.

If you are unsure about how to manage your money and whether T-bills make sense for you, consult with a financial advisor who can offer advice.

Bottom line

Investors seeking security and hoping to get ahead financially might like what T-bills have to offer. However, these investments offer relatively low returns and generally won't replace investing in the stock market to grow your money more.

Instead of going all-in on T-bills, talk to your financial advisor to see whether it might be a good idea to include these investments as a part of your overall portfolio.

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