But even in the tech world, bargains can be found, and Buffett landed a big one in the third quarter of this year. He opened only one new position in the quarter -- and it was the cheapest of the "Magnificent Seven" tech stocks. Let's zoom in for a closer look.

Buffett has taken a highly conservative approach to the stock market in recent years. However, he bought these three stocks in the most recent quarter.

Wall St has been left rattled as one of tech’s most–watched investors made a $8.9 billion move that will send shockwaves through the AI industry.

This approach is called dollar-cost averaging, and it's one of the most effective ways to hedge against market volatility. Sometimes you'll buy at the market's highest prices. Other times, you'll score pricey stocks at steep discounts. Over decades, those highs and lows should average each other out -- without needing to time the market.

Buffett rejects the efficient markets hypothesis, but still recommends low-cost index funds for most ordinary investors.