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

"As with most measures, we need to be careful using it when we compare the present to the past," Morgan Stanley's Michael Mauboussin said.

It has a massive market cap of $482 billion. This huge value has come from impressive shareholder gains. Since Mastercard's initial public offering in 2006, the company has generated a total return of 12,470%. This means that a $1,000 investment made back then would be worth $126,000 today.

Few names command as much attention when it comes to investing as Warren Buffett. It's for good reason, too, when you consider the success he and his company, Berkshire Hathaway, have sustained through decades.

Chubb is a global insurance and reinsurance company with assets of $231 billion at the end of 2023. The company is considered a “Dividend Aristocrat” because it has raised its annual dividend for at least 25 consecutive years. Berkshire’s stake in Chubb was worth about $7.8 billion at the end of September 2024.

The company's success has benefited Warren Buffett's Berkshire Hathaway, as 0.9% of the conglomerate's huge equity portfolio is in Visa shares. But is this financial stock headed higher? For a company to put up returns that spectacular,