Back in 2015 Warren Buffett's Berkshire Hathaway paid $500 million to Insurance Australia Group Ltd ( ASX: IAG ) to take a 3.7% stake in the insurance giant. As well as the stake, the deal included an agreement which saw the investment conglomerate receive 20% of IAG's gross written premiums and pay 20% of its claims. As a generous dividend payer, this deal was expected to deliver a sizeable income stream which Berkshire Hathaway advised would be invested locally to avoid currency risk. Buffett told that AFR via a phone interview that: "If you come back in two or three years, you will find we have got four or five Australian equities." One area that had caught the eye of Mr Buffett was the banking sector. He stated: "Banking is something I have looked at. I am comfortable with banks. We have some big positions in US banks. I will certainly be looking at the bank. In looking at banks, I would say there is a good chance that five years from now, we will have bought one or more positions in Australian banks."