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According to Berkshire Hathaway's latest financial report, as of the end of the second quarter, it held $234.6 billion in short-term U.S. Treasury bonds, and had more than $42 billion in cash and cash equivalents, including U.S. Treasury bonds with a term of three months or less.

Berkshire's cash holdings increased from $189 billion at the end of the first quarter to $276.9 billion at the end of the second quarter, hitting a new high again, mainly because Berkshire sold a net $75.5 billion in stocks. This is also the seventh consecutive quarter that Berkshire has sold more stocks than it has bought, and the speed of selling stocks is likely to expand.

In contrast, as of July 31, the Fed held $195.3 billion in U.S. Treasury bonds with a maturity of less than one year. This means that Berkshire's holdings of short-term U.S. Treasury bonds have surpassed the Fed.

Of course, the Fed also has an incredibly large holding of longer-term U.S. Treasuries, which it holds at $4.4 trillion. The Fed was a big buyer of U.S. Treasuries during the COVID-19 pandemic and remains one of the largest holders of U.S. Treasuries as part of its efforts to keep markets liquid.

Buffett has previously said that in times of crisis, he would buy short-term U.S. Treasuries directly at auctions.

Buffett's massive cash pile has earned a handsome return as Treasury yields have surged over the past two years. If invested in three-month Treasury bills at an interest rate of around 5%, the $200 billion in cash would generate about $10 billion in income each year.