OMAHA, Neb. — Warren Buffett has once again embraced his Thanksgiving tradition of generosity, revealing on Monday his intention to donate over $1.1 billion in Berkshire Hathaway stock to four family-run foundations. Alongside this announcement, he shared insights about the distribution of his vast fortune, valued at $147.4 billion, after his passing and the succession plans he has put in place for his children.
Previously, Buffett expressed that his three children are tasked with the responsibility of distributing his wealth within a decade following his death. However, recognizing the unpredictability of life, he has identified successors for them, though he refrained from naming those individuals. His children are aware of these choices and believe they are suitable selections.
In a letter addressed to his shareholders, the 94-year-old Buffett reflected on the inevitability of mortality. “Father time always wins,” he stated. He expressed gratitude for his long life but acknowledged the declining lifespans of his children, who are now aged 71, 69, and 66, since he made his 2006 pledge regarding his wealth distribution.
Buffett has reiterated his stance against creating entrenched wealth for his family, a philosophy that aligns with the views of both his first and current wives. Despite providing his children with significant financial support over the years, he believes in leaving them with enough resources to pursue their ambitions, yet not so much that it fosters complacency.
The secret behind Buffett’s extraordinary wealth accumulation stems from his savvy investing strategies, particularly the compounding interest effect and the growth of Berkshire Hathaway, which he has adeptly expanded through various acquisitions. His investments, especially in Apple as its iPhone sales surged, have paid off immensely. Throughout his career, he has never sold off any of his Berkshire stock and has chosen to live modestly, preferring his long-time Omaha home over a more extravagant lifestyle. He travels modest distances to work in practical luxury vehicles.
Buffett emphasized that while his family has enjoyed a comfortable lifestyle, they have not pursued pleasure derived from the envy of others. Had he and his late first wife, Susan, chosen not to give away any of their Berkshire shares, their family fortune would now be close to $364 billion, potentially making him the richest person worldwide. However, he expressed no regrets about his philanthropic efforts, which began in earnest following Susan’s passing in 2004 and gained momentum with a pledge in 2006 to donate annually to his children’s foundations and the Bill & Melinda Gates Foundation.
To date, Buffett’s contributions predominantly bolster the Gates Foundation, with him donating $55 billion in stock over the years, as he values the established structure and capability to manage large donations that Bill Gates had already created. Nonetheless, he believes his children are now well-equipped to handle philanthropic endeavors and intends to cease contributions to the Gates Foundation after his passing. Traditionally, he allocates major gifts to all five foundations each summer while also increasing his donations to his family foundations during Thanksgiving.
Buffett encouraged all parents to share their wills with their families while still alive to clarify decisions regarding asset distribution and to address any potential queries from their children. He observed that unresolved ambiguities related to wills can lead to familial discord, a lesson he learned alongside his long-time business partner, Charlie Munger, who passed away a year ago.
Currently, Buffett remains the chairman and CEO of Berkshire Hathaway and does not plan to retire soon. He has, however, delegated the daily management of the conglomerate’s various companies to others, allowing him to focus on investment strategies. Greg Abel, who oversees the non-insurance sectors of Berkshire, is expected to assume the CEO role following Buffett’s eventual departure.