No. of Recommendations: 1
Isn't a fan of long dated paper now, is it any mystery what he really thinks about what BAC, did, the past few years? ' Billionaires are weighing in on the bond market, where yields have risen sharply. Tesla's Elon Musk, for instance, called short-term Treasuries a 'no-brainer,' and of course Berkshire Hathaway's Warren Buffett said Fitch's downgrade of U.S. debt wasn't going to keep him out of that market, either.
Berkshire bought $10 billion of U.S. Treasuries on Monday as it does every week, Buffett told CNBC. Berkshire buys Treasury bills at the weekly government auctions of 3-month and 6-month bills. About $104 billion of Berkshire's cash was so invested as of March.
But Buffett isn't a fan of longer-dated paper. Berkshire's equity portfolio totals about $375 billion, while it held just $23 billion of bonds as of March. Long-dated Treasuries are on pace for their worst week of the year, with the 30-year yield near November 2022 highs, and 10-years yielding 4.13%.
Hedge-fund manager Bill Ackman tweeted on Wednesday that he was betting on 30-year yields to continue rising, possibly to 5.5% from 4.3% now. On Thursday, he said his firm Pershing Square invests cash in short-term Treasuries.
Ackman noted in his annual letter to shareholders earlier this year that Pershing Square had made about $5 billion from rate bets since 2020, including one initiated in 2020 that profited from the sharp rise in rates the Fed has rolled out since early 2022.'
