Warren Buffett Called Dividend Growers the "Secret Sauce" to Massive Gains: Are They Still Delivering for Berkshire Hathaway?

Core Insights - Warren Buffett's 2023 letter highlights Berkshire Hathaway's impressive 3,787,464% gain since 1965, emphasizing the importance of investing in companies that significantly increase their dividends over time [2][3] Investment Strategy - The secret to Berkshire's success lies in its investments in companies like Coca-Cola and American Express, which have provided substantial dividend income, with Berkshire collecting over $1 billion annually from these two investments [3][4] - Coca-Cola and American Express have raised their dividends by 19% and 91%, respectively, since the letter was written, indicating strong growth in income streams [4] Portfolio Overview - Berkshire Hathaway's largest holding is Apple, comprising 22.3% of its portfolio with 280 million shares, and the company has doubled its dividend since Buffett began purchasing shares in 2016 [6] - Berkshire collects $291.2 million annually in dividends from Apple, based on a total investment of approximately $40 billion [8] - Bank of America is the second-largest holding, making up just over 11% of the portfolio with 605 million shares, and has nearly quadrupled its dividend since Buffett converted preferred shares to common shares in 2017, now paying over $675 million in dividends per year [9]