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

Under the leadership of CEO Warren Buffett, Berkshire Hathaway has become one of history's most successful businesses. The investment conglomerate has a market capitalization of more than $1 trillion, and it currently ranks as the world's 10th most valuable company.

"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.