OMAHA, Neb. (AP) — On Monday, investor Warren Buffett announced plans to donate over $1.1 billion worth of Berkshire Hathaway stock to four of his family foundations, continuing his Thanksgiving tradition of giving. He also provided new information regarding the distribution of the remainder of his fortune after his death.
Buffett had stated that his three children would divide his remaining $147.4 billion wealth within ten years of his passing; however, he has now appointed successors for them as well, as it is likely that Buffett’s children will pass away before distributing the entire amount. Although he did not name the successors, he claimed that his children all knew them and thought they would make wise decisions.
Time is always on the side of the father. In a letter to his fellow shareholders, the 94-year-old Buffett stated that he can be erratic, unfair, and even cruel, sometimes taking a life at birth or shortly after, and other times waiting a century or so before visiting. I’ve been extremely fortunate so far, but he will eventually catch up with me. However, my fortunate fortune in evading his notice has a drawback. Since the 2006 commitment, my children’s predicted lifespan has significantly decreased. They are now 66, 69, and 71 years old.
Buffett stated that, like his first and current wife, he still has no interest in establishing dynastic riches in his family. Although he admitted to gifting Howard, Peter, and Susie millions over the years, he has always maintained that extremely affluent parents need to leave their kids enough money to accomplish anything, but not so much that they are powerless.
The power of compound interest and the steady growth of the Berkshire conglomerate, which Buffett leads through acquisitions and wise investments like purchasing billions of dollars’ worth of Apple stock as iPhone sales continued to propel the company’s growth, have been the keys to amassing such enormous wealth over time. Buffett preferred to stay in the same Omaha home he had purchased decades prior, drive reasonable luxury automobiles about 20 blocks to work every day, and never sell any of his Berkshire shares over the years. He also resisted the accoutrements of riches and never indulged in anything.
FILE – Warren Buffett, Chairman and CEO of Berkshire Hathaway, speaks during a game of bridge after the annual Berkshire Hathaway shareholders meeting in Omaha, Neb., on May 5, 2019. (AP Photo/Nati Harnik, File)
Image courtesy of Nati Harnik/Associated Press
We’ve had everything we needed or just loved as a family, but we haven’t taken pleasure in the idea that other people wanted what we had, he remarked.
Buffett claimed he had no regrets about his charitable contributions over the years, even though the family’s fortune would have been close to $364 billion if he and his first wife had never given away any of their Berkshire stock. The distribution of Susan Buffett’s $3 billion estate following her death in 2004 marked the beginning of the family’s charitable giving, but it really took off in 2006 when Warren Buffett revealed plans to make yearly contributions to the Bill & Melinda Gates Foundation, the foundations his children and his wife founded, and the foundations they run.
The Gates Foundation, which has $55 billion in shares, has benefited from Warren Buffett’s donations thus far since, when Buffett began donating his fortune, his friend Bill Gates had already established his foundation and was able to handle large gifts. Buffett has stated that his children are now capable of handling the philanthropic responsibilities, and he intends to stop making contributions to the Gates Foundation after his passing. Buffett has been contributing more Berkshire shares to his family’s charities at Thanksgiving for a number of years, but he still makes his major annual gifts to all five foundations every July.
Buffett reaffirmed on Monday his counsel to all parents to let their families read their will while they are still living, just as he has done, so that they have an opportunity to explain their choices regarding the distribution of their possessions and respond to their children’s inquiries. Buffett claimed that after the posthumous terms of the will left heirs perplexed and occasionally irate, he and his longtime investing partner Charlie Munger, who passed away a year ago, witnessed numerous families being split up.
Although Buffett has delegated most of the day-to-day management responsibilities for the conglomerates’ dozens of businesses to others, he still serves as chairman and CEO of Berkshire Hathaway and has no intentions to retire. This enables him to concentrate on his preferred task, which is choosing where to invest Berkshire’s billions. Following Buffett’s passing, Greg Abel, one of his deputies who currently manages all noninsurance businesses, will succeed him as CEO.
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