Warren Buffett has inspired a generation of investors with his proven methodology for investing in value stocks and holding them for the long term. The fact that he features in the top 5 billionaires list is a testament to his success with his investments Berkshire Hathaway, Inc. (NYSE: BRK-A) (NYSE: BRK-B), a company he has managed since 1964.

What happened: However, Buffett, who goes by the nickname “Oracle of Omaha,” has been humble about his success. “In 58 years at Berkshire’s management, most of my capital allocation decisions have been no better than so-so,” the billionaire said in his annual letter to Berkshire shareholders.

At times, Buffett has been saved from facing the ramifications of a few bad bets by “huge amounts of luck,” he said, citing Berkshire’s flight from near-disasters with US Airlines stocks and Bond trading company Salomon.

Berkshire’s satisfactory performance over the years can be attributed to a dozen “really good decisions” that it thinks could be made every five years and the forgotten advantage that favors long-term investors, he said.

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Secret sauce: Buffett also shared his secret sauce by offering his investments in Coca-Cola company KO And American Express company AXP.

He noted that in 1994, Berkshire completed a seven-year purchase of the 400 million shares of Coca-Cola it now owns for $1.3 billion. The drinks giant’s cash dividends continue to come in regularly, with growth occurring each year, he said.

On American Express, Buffett noted that Berkshire’s purchases of Amex were completed in 1995 for $1.3 billion. He expects the financial services company’s dividends to keep growing.

“These dividend gains, while encouraging, are anything but spectacular. But they do bring important price gains,” Buffett said.

At the end of 2022, Berkshire’s investments in Coca-Cola and Amex were estimated at $25 billion and $22 billion, respectively,…