Warren Buffett recently made headlines after selling nearly $80 billion worth of Apple stock in the second quarter of 2024. Despite this major move, Berkshire Hathaway still holds a large position in Apple, its top stock holding. Buffett has repeatedly praised Apple, calling it “an even better business” than American Express and Coca-Cola, two companies Berkshire plans to hold indefinitely.

While many expected Buffett to use the proceeds to invest heavily in other stocks, only a small portion of the funds went into new stock purchases. Buffett added to Berkshire’s positions in Sirius XM Holdings, Occidental Petroleum, and Chubb, but the total investments in these stocks were modest, around $5 billion combined.

So where did the bulk of the Apple sale money go? The answer: U.S. Treasury bills. By the end of the second quarter, Berkshire’s holdings in Treasuries increased by a staggering $81.3 billion. Buffett parked the majority of his cash in these safe and steady investments, indicating that he prefers Treasuries over stocks in the current market environment.

This move suggests that even though Buffett still considers Apple a “wonderful business,” he views U.S. Treasuries as a better option for a large portion of Berkshire’s cash for now. With short-term Treasury yields above 4.5%, investors may want to consider following Buffett’s strategy of securing stable returns while waiting for better stock buying opportunities.

However, it’s important to remember that Buffett’s strategy aligns with Berkshire Hathaway’s massive financial structure, which may differ from the goals of individual investors. Even so, Treasuries can be a solid option for generating returns in an uncertain stock market.