Berkshire Hathaways cash pile grows to a record US$167.6 billion, dwarfing Australia's biggest firm, BHP. Five things you need to know about Buffett and Berkshire

Two - Although Buffett alluded to there not being any compelling investment opportunities outside of the US, Buffett has a 9% stake in each of Japan's top five trading houses. Reports suggest he will likely increase his stakes in those as they're still undervalued according to Bito Financial. The five trading houses made Berkshire $8 billion, or 61%, by the year end. InAugust 2020 Buffett declared he had a 5% stake in five Japanese trading companies.

The fund since added to its positions in Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo, and it was a good investmentBerkshire. Their returns, including dividends, dwarfed the S&P 500 and Japan's Nikkei 225 stock averages. From Aug. 28, 2020's close the returns in of the five companies ranged from as low as 185% for Itochu to a high of 402% for Marubeni. That's a start contrast to the S&P 500's 53% return over the same time.

That said when, Buffett said there are “no candidates that are meaningful options for capital deployment at Berkshire [outside of the US]”, he was referring to the future investments. That doesn't mean he won't increase his stakes in his Japanese assets. Berkshire reportedly plans to increase investments in the five firms, and hold 9.9% of each.

Three - Buffett pointed to the investment opportunities in US being limited; and already discovered. "There remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others”.

Five - Buffett's letter highlighted what made the fund successful over time was five things. One: having clarity of purpose when investing. Two, focusing on quality investments—or in Buffett’s words, “wonderful businesses.”Three, favoring companies run by good managers. Four, holding for the long term, as “patience pays.”And five practicing “fiscal conservatism.”