Warren Buffett and Berkshire Hathaway (NYSE:BRKa) extended their retreat from stocks in the third quarter, slashing their holdings in Apple and boosting cash to a record $325.2 billion.

Warren Buffett once said that it’s wise for investors “to be fearful when others are greedy and to be greedy only when others are fearful.”

This statement relates directly to the price of an asset. Price is what you pay and value is what you get. When others are greedy, prices typically boil over and one should be cautious lest they overpay for an asset that subsequently leads to anemic returns. It might present a good value investment opportunity when others are fearful.

Today, when the cash allocations of global investors are lower than even at the peaks of the tech and housing bubbles, I read it as the signal that Warren is getting ready to the times when fear is back in this market.