By Billionaire investor Warren Buffett distributed more than $1.1 billion in Berkshire Hathaway stock to four family foundations Monday, continuing his Thanksgiving giving tradition while revealing new details about the distribution of his $147.4 billion fortune after his death.
The 94-year-old investor disclosed in a letter to shareholders that he has designated successors to his three children for distributing his remaining wealth within a decade of his death, acknowledging the reality that his children, now aged 71, 69, and 66, may not outlive the distribution timeline.
“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,” Buffett wrote. “To date, I’ve been very lucky, but, before long, he will get around to me.”
While not identifying the successors, Buffett indicated his children Howard, Peter, and Susie know and approve of the choices. The arrangement maintains his long-held opposition to creating dynastic wealth, a view he noted was shared by both his first and current wives.
Buffett’s massive fortune stems from the power of compounding interest and Berkshire’s growth through strategic acquisitions and investments, including substantial Apple holdings. He has never sold his Berkshire shares and maintains a modest lifestyle, residing in the same Omaha home he purchased decades ago.
The investor’s giving has heavily favored the Bill & Melinda Gates Foundation, which has received $55 billion in stock, chosen initially for its ability to handle large donations. However, Buffett plans to end Gates Foundation contributions after his death, expressing confidence in his children’s philanthropic experience.
Highlighting the scale of his lifetime giving, Buffett noted that without any charitable donations, his family’s fortune would have reached nearly $364 billion. His philanthropic journey accelerated after his first wife Susan’s death in 2004, when her $3 billion estate was distributed, followed by his 2006 pledge to make annual gifts to his children’s foundations and the Gates Foundation.
Buffett, who still controls more than 30% of Berkshire’s voting power with 206,363 Class A shares after the latest donation, emphasized the importance of families discussing estate plans openly. Drawing from his and late partner Charlie Munger’s observations, he warned that posthumous will revelations often create family conflicts.
While continuing as Berkshire’s chairman and CEO with no retirement plans, Buffett has delegated most operational duties to focus on investment decisions. Greg Abel, who oversees Berkshire’s non-insurance operations, is designated to succeed as CEO after Buffett’s death.
The latest stock conversion involved 1,600 Class A shares transformed into 2.4 million Class B shares for the donation, demonstrating Buffett’s ongoing commitment to philanthropy while maintaining significant control of the company he built.
apnews.com
