Warren Buffett has completed his plan to give away one of the largest fortunes of modern times, the Wall Street Journal reports.
In an interview with WSJ, the CEO of Berkshire Hathaway shared that after his death, almost all of his remaining assets will be transferred to a charity fund managed by his daughter and two sons close.
The investing legend also added that his donation to the Bill & Melinda Gates Foundation will also end.
The billionaire gave away more than half of the shares he held in Berkshire. After the latest charitable donation announced last Friday, Buffett now owns nearly $130 billion in shares of the corporation. His three children will later decide which charity purpose the money will serve.
The 93-year-old billionaire said he has not yet asked his three children how to use that money. However, he also shared his personal views on giving.
He said: “This money should be used to help people who are not as lucky as us. There are 8 billion people in the world, my children and I are in the luckiest 1% and there are many ways to help people.”
Back in 2006, Buffett also said he was ready to give. He pledged to donate his entire life to the Gates Foundation and four foundations related to his family. However, it is unclear what he will do with the rest of his fortune after he dies. Buffett has said that his donations to the five charities will continue as long as he is alive.
The billionaire shared that he has changed his will many times. The current plan was made after witnessing the changes in his children over the years.
Susie Buffett, 71, lives in Omaha and is president of the Sherwood Foundation, which promotes early childhood education and social justice. She is also president of the Susan Thompson Buffett Foundation, named after her mother and Buffett’s first wife.
Howie Buffett, 69, lives in Decatur, Illinois and is president of the Howard G. Buffett Foundation. The foundation works to support food security, reduce conflict and combat human trafficking. Both Ms. Susie and Mr. Howie are members of the Berkshire Board of Directors.
Peter Buffett, 66, is a composer who lives near Kingston, New York. His wife, Jennifer Buffett, runs the NoVo Foundation, whose projects include working with indigenous communities.
Warren Buffett shared: “I feel very satisfied with the values my three children bring. I trust 100% in the way they do things.”
The Berkshire CEO added that his children will have an advantage in dealing with any future changes to tax laws or to organizations.
Recently, Berkshire announced that it will convert 8,674 of the company’s class A shares into class B shares to make another donation.
The Bill & Melinda Gates Foundation Trust is receiving Berkshire’s class B shares worth about $4 billion. Meanwhile, the Susan Thompson Buffett Foundation is receiving about 400 million USD. Each of Buffett’s daughter and son’s funds received more than $280 million in shares. One Berkshire Class A share is equivalent to ownership of 1,500 Class B shares, with Class A shares having more voting rights.
In 2006, Buffett wrote to each of the five foundations to explain his giving plans. He specified the distribution of shares as gifts to each foundation. Six years later, he doubled his pledge to the charities of his three children.
Every year, 5% of the remaining shares will be contributed to each respective fund. Therefore, the number of shares given away will decrease each year, although the increase in share price makes the value of the “gifts” higher. Berkshire’s Class B shares are 6 times higher than at the end of June 2006.
However, Buffett has not yet clarified the “future” of the stocks he owns after his death.
The Gates Foundation, one of the world’s largest foundations, is known for its work in global health, as well as poverty and gender equality. According to information on this fund’s website, from 2006 to 2023, Buffett donated $39.3 billion.
Buffett has declined to reveal his plans for the real estate arm, only hinting in a November press release about donating additional Berkshire shares to four family foundations.
In interviews, Buffett’s three children said they had not yet made a decision about disbursing billions of dollars.
