The business mogul and CEO of Berkshire Hathaway, Warren Buffett, donated $5.3 billion worth of Berkshire shares to five charities on Friday, marking his largest annual gift ever. Buffett’s latest donation, as he previewed it for his 94th birthday next month, reflects his nearly half-century commitment to public service.
According to a statement posted on Friday afternoon by Buffett’s company, “Mr. Buffett exchanged 8,674 of his Berkshire Class A shares for more than 13 million Class B shares.” The Bill & Melinda Gates Foundation received the largest portion of these shares, totaling 9.93 million. The remaining shares were given to the Susan Thompson Buffett Foundation, which bears the name of Howard Buffett’s late first wife, and three organizations managed by Peter, Susan, and Howard Buffett.
Known as the “Oracle of Omaha,” Buffett has pledged to donate all of the money he has amassed since taking over as CEO of Omaha, Nebraska-based Berkshire Hathaway in 1965. Since 2006, he has donated annually to these five nonprofit organizations. Buffett still has 2,586 B shares and around $130 billion in A share value on Berkshire’s books following Friday’s donations.
In an interview with The Wall Street Journal, Buffett elaborated on how his wealth will be spent after his death. He revealed that his substantial fortune will be directed to a new philanthropic trust managed by his three children. “It should be used to help the people that haven’t been as lucky as we have been,” Buffett stated. “There are eight billion people in the world, and me and my kids, we’ve been in the luckiest 100th of 1% or something. There are lots of ways to help people.”
Buffett has previously indicated that his three children will serve as executors of his estate and trustees of the charitable trust, which he expects to receive almost all (>99%) of his wealth. He also said that following his death, donations to the Bill & Melinda Gates Foundation would stop. After Bill and Melinda Gates’ divorce in June 2021, Buffett resigned from his position as a trustee of the Gates Foundation last year.
During Berkshire Hathaway’s annual meeting in May, Buffett revealed he might not be managing the company forever in an uncommonly candid moment. He looked somber as he considered his advanced age and paid respects to his late friend and business colleague, Charlie Munger.
Greg Abel, vice chairman of Berkshire’s noninsurance activities and Buffett’s heir apparent, has assumed much responsibility for the company. This transition strategy ensures that the business will be competently managed by a capable team after Buffett’s tenure.
Buffett also pledged to make his will public after his death. “Post my death: My trustees will not be active in the management of Berkshire,” Buffett stated in November, later adding, “The governance model we have and I believe it is a proven as well as logical one does involve significant delegation to trusted individuals who are highly aligned with me.”
Warren Buffett’s often been known for his philanthropy and this is another instance of such.
