Warren Buffett Donates $5.3 Billion Worth of Berkshire Hathaway Stock to Charities

Key Takeaways

• Warren Buffett announced a donation of about $5.3 billion worth of Berkshire Hathaway stock to five charities.
• Buffett has committed to donating annually to the same five charities since 2006.
• Upon his death, Buffett’s fortune will largely go to a new charitable trust managed by his three children.

Warren Buffett, the legendary investor and Chairman and CEO of Berkshire Hathaway, has made headlines once again for his philanthropic efforts. On Friday, Buffett announced that he will be donating approximately $5.3 billion worth of Berkshire Hathaway shares to five charities. This generous donation is part of Buffett’s ongoing commitment to giving back to society and supporting causes that are important to him.

Buffett, who is 93 years old, will be converting 8,674 Berkshire Hathaway Class A shares into more than 13 million Class B shares, which will then be distributed to the selected charities. Currently, Buffett owns 207,963 Class A shares and 2,586 Class B shares, with a total value of around $128 billion. The Bill & Melinda Gates Foundation Trust will be the primary recipient of this donation, receiving more than 9.9 million shares. The remaining shares will be divided among the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation.

This act of generosity is not a one-time occurrence for Buffett. In fact, he made a commitment to donate to these five foundations annually back in 2006. These annual donations will continue until his death, at which point Buffett’s estate will be largely directed towards a new charitable trust that will be managed by his three children.

In an interview with The Wall Street Journal, Buffett revealed that his children – Susan, Howard, and Peter Buffett – will be responsible for overseeing the charitable trust and deciding how the funds will be allocated to various charitable causes. Susan Buffett chairs two of Warren Buffett’s lifetime commitments: the Susan Thompson Buffett Foundation and the Sherwood Foundation. Howard Buffett leads the Howard G. Buffett Foundation, while Peter Buffett and his wife, Jennifer Buffett, are in charge of the NoVo Foundation.

One notable aspect of Buffett’s posthumous philanthropy is that the donations to the Bill & Melinda Gates Foundation will cease upon his death. Buffett made it clear that “The Gates Foundation has no money coming after my death.” This decision reflects Buffett’s desire to ensure that his charitable contributions are managed and distributed in a way that aligns with his values and priorities.

In a statement released last November, Warren Buffett emphasized his commitment to transparency and simplicity when it comes to his estate planning. He stated that his will would be made public upon his death, with no complex trusts or entities designed to avoid public scrutiny. Instead, he intends for his will to be available for inspection at the Douglas County Courthouse, ensuring full transparency in the handling of his assets.

Overall, Warren Buffett’s latest donation reaffirms his status as one of the world’s most generous philanthropists. By giving back to society and supporting causes that are important to him, Buffett is leaving a lasting legacy that will continue to make a positive impact for years to come.

For more information on Warren Buffett’s philanthropic efforts and charitable donations, you can read the original article on Investopedia.