OMAHA, Nebraska — This past Monday, investor Warren Buffett upheld his Thanksgiving tradition by distributing over $1.1 billion in Berkshire Hathaway shares to four foundations associated with his family. In the process, he also shared insights regarding the distribution of his wealth after his passing.
Buffett had previously indicated that his three children would be responsible for managing his remaining fortune, which amounts to approximately $147.4 billion, over the span of a decade following his death. However, he has now appointed successors for his children, taking into consideration that they may not outlive him. Although he did not reveal the names of these successors, he confirmed that his children are familiar with them and concur that they are appropriate choices.
“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,” the 94-year-old Buffett commented in his letter to shareholders. He noted, “To date, I’ve been very lucky, but, before long, he will get around to me.” He reflected on the diminished life expectancy of his children, now aged 71, 69, and 66, since his pledge in 2006.
Buffett firmly believes in avoiding the creation of extensive generational wealth, a sentiment echoed by both his past and current wives. Although he has financially supported his children — Howard, Peter, and Susie — throughout their lives, he has consistently asserted his philosophy: “Hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.”
He attributed his tremendous wealth accumulation to the benefits of compounding interest and the sustainable growth of Berkshire Hathaway. Buffett has famously favored long-term investments like his major stake in Apple, which thrived alongside rising iPhone sales. He has never sold any of his Berkshire shares and has chosen to live modestly, maintaining his Omaha home from decades ago while driving sensible luxury cars to work.
“As a family, we have had everything we needed or simply liked, but we have not sought enjoyment from the fact that others craved what we had,” he stated.
Buffett’s philanthropic efforts have resulted in a significant transformation of his family’s wealth. Had he never made any charitable donations, their fortune could have soared to approximately $364 billion, potentially positioning him as the richest man in the world. Despite this, Buffett harbors no regrets about his generosity over the years. The family’s charitable initiatives gained traction after the 2004 passing of his wife, Susan, and gained momentum in 2006 when Buffett pledged to donate to foundations operated by his children, along with those managed by his wife and the Bill & Melinda Gates Foundation.
To date, Buffett has channeled a substantial $55 billion to the Gates Foundation due to his long-standing friendship with Bill Gates, who was well-prepared to receive significant donations. Nevertheless, Buffett has indicated that his children now possess enough philanthropic expertise to undertake such responsibilities on their own, thus planning to discontinue donations to the Gates Foundation after his death. Notably, Buffett typically makes his primary gifts to all five foundations in the summer, alongside his additional Thanksgiving donations.
He further emphasized to parents the importance of transparency by allowing their families to review their wills while still alive, as he has done. He mentioned that both he and his longtime business partner Charlie Munger, who passed away a year ago, had witnessed families becoming estranged due to unclear directives in wills that left beneficiaries with confusion and resentment.
Currently, Buffett continues to oversee Berkshire Hathaway as its chairman and CEO, with no intentions of retirement. He has delegated most daily operations to others while retaining the ability to focus on investment decisions. His deputy, Greg Abel, who manages all non-insurance companies, is slated to assume the role of CEO after Buffett’s passing.
Despite having distributed 2.4 million Class B shares by converting 1,600 Class A shares, Buffett retains ownership of 206,363 Class A shares and maintains control over more than 30% of the voting power.
