OMAHA, Neb. (AP) — In a continuation of his Thanksgiving custom, investor Warren Buffett announced on Monday that he plans to donate over $1.1 billion in Berkshire Hathaway stock to four family foundations. He also shared new information regarding the individuals who will manage the distribution of his remaining wealth after his passing.
Previously, Buffett revealed that his three children would be responsible for distributing his substantial fortune, which is currently valued at $147.4 billion, within 10 years of his death. However, he’s now appointed successors for his children in case they pass away before fulfilling this responsibility. While he did not disclose the names of these successors, he assured shareholders that his children are aware of them and support the selections.
At 94, Buffett reflects on mortality with a pragmatic approach. In a letter to shareholders, he remarked, “Father time always wins. But he can be fickle – indeed unfair and even cruel – sometimes ending life at birth or soon thereafter while, at other times, waiting a century or so before paying a visit.” He acknowledged his own good fortune in life but noted a change in his children’s expected lifespans since he made his philanthropic pledge in 2006. His children are now aged 71, 69, and 66.
Buffett’s dedication to philanthropy is clear; he has emphasized that he has no desire to create generational wealth for his family—a stance shared by both his first and current wives. He has provided his children with substantial financial support over the years but maintains that wealthy parents should ensure their children have enough to thrive without being able to squander it. He famously stated, “Hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.”
The remarkable growth of Buffett’s wealth can be attributed to the power of compounding interest and the consistent expansion of Berkshire Hathaway through strategic acquisitions and smart investments. Notably, Buffett found success in increasing his stake in companies like Apple, benefiting from the growth spurred by iPhone sales. Throughout the years, he has refrained from selling any of his Berkshire stock and has chosen to maintain a modest lifestyle, residing in the same Omaha home he purchased decades ago and opting for practical vehicles for his daily commute to work.
Buffett emphasized that, while his family has enjoyed a comfortable lifestyle, they have never sought satisfaction from the desires of others for what they possess. If Buffett and his first wife had not donated any of their Berkshire shares, their family’s fortune could have ballooned to nearly $364 billion, positioning Buffett as the world’s richest man. However, he has expressed no regrets regarding his charitable giving.
The family’s philanthropic efforts gained momentum following the distribution of Susan Buffett’s $3 billion estate after her passing in 2004. Buffett’s commitment to charity intensified in 2006 when he pledged to make annual contributions to the foundations run by his children, as well as to the Bill & Melinda Gates Foundation. To date, Buffett’s largest donations have favored the Gates Foundation, amounting to $55 billion in stock, since it was already equipped to handle significant gifts when he began his philanthropy. However, he recently indicated that his children now have the expertise required to manage their own foundations, planning to cease donations to the Gates Foundation posthumously.
Buffett continues to make substantial contributions to all five family foundations each summer, with additional gifts of Berkshire shares sent to his family’s foundations during Thanksgiving. He reiterated the importance of transparency for families, encouraging parents to allow their families to read their wills while they are still alive. He believes this can prevent confusion and tension among beneficiaries after death, a lesson he learned observing families torn apart by unclear inheritance directives.
Despite having delegated most day-to-day management of Berkshire Hathaway’s various companies, Buffett remains actively involved as chairman and CEO, showing no intentions of retiring. Greg Abel, one of Buffett’s deputies responsible for overseeing non-insurance companies, is poised to become the next CEO after Buffett’s passing, ensuring continuity for the business he built.
