Why Berkshire Hathaway’s cash and short-term holdings suggest that stocks are overvalued and lower prices are coming.

Buying Amazon stock now could still prove to be a very smart move. It has a forward price-to-earnings ratio (P/E) of 36.9, and while that's not cheap, it's still priced relatively well considering the S&P 500 's P/E is 30.9.

Berkshire Hathaway’s portfolio is filled with dividend stocks, which should come as no surprise to Buffett followers. Buffett invests in companies with strong profitability, sensible capital allocation and competitive advantages, all of which often translate into stocks with solid dividends.