Warren Buffett’s Berkshire Hathaway reduced its stock holdings and increased its cash reserves in the third quarter. The cash holdings of Berkshire have now reached an all-time high.

Of course, our investments cannot be exactly the same as Buffett’s. The scale of funds and the investment environment are quite different. However, the insight we can gain is that Buffett considers the current U.S. stock market to be overvalued or unstable.

In the short term, Buffett’s perspective may seem incorrect for a few months, but considering that his long-term assessments of the risk asset market have rarely been wrong, we should take these insights into account as we approach our own investments.