From Dow Jones & Company:

Warren Buffet’s company, Berkshire Hathaway, has a record $150 billion in cash and short-term investments, the highest in the company’s history. Some believe this indicates Buffet is struggling to find undervalued companies to invest in, suggesting an overvalued stock market. However, Berkshire’s current cash level is similar to its historical average, and not inversely correlated with the market’s ups and downs. The fluctuation in cash level is mostly unrelated to market timing, with this cash level not being an accurate indicator of the stock market’s value. Therefore, it is important to maintain a skeptical attitude towards Wall Street assertions.



Read more: Is Buffett’s market view found in Berkshire Hathaway’s $150 billion cash hoard?