Buffett is signaling that he thinks the market, or at least parts of it, is overvalued. Berkshire largely avoided buying stocks in the third quarter and moved into safety. The Oracle of Omaha has been known to successfully time the market in the past.

Berkshire's risk management is the best in the business, and it has built up an incredible capacity to survive any coming bear market. See why BRK.A stock is a Hold.