Berkshire Hathaway's growing liquidity

Berkshire Hathaway ended the third quarter with cash and U.S. Treasury bills of $157.2 billion. The total has risen for five straight quarters.

The recent period's breakout was $30.8 billion of cash and $126.4 billion of U.S. Treasury bills.

The liquidity stockpile comes as the S&P 500's valuation remains high by historical standards. Economist Robert Shiller's cyclically adjusted price-to-earnings ratio was 30.8 at the start of September. The CAPE ratio was 27.1 as of October 2022.

Over the past two years, U.S. Treasury bill yields have spiked. Short-term yields (1-month to 1-year maturity) are well above 5% compared with under 0.1% on Sept. 30, 2021.