Warren Buffett donates $1.1 billion, reveals wealth distribution plan after death

Warren Buffett, the billionaire investor and philanthropist who leads Berkshire Hathaway, has donated another $1.1 billion to several foundations.

This move continues his long-standing commitment to gradually give away his immense fortune, valued at $150 billion, during his lifetime and beyond.

In his latest letter to Berkshire Hathaway shareholders, the 94-year-old provided a deeply personal reflection on life’s unpredictability and shared detailed plans for the distribution of his wealth after his passing.

BUFFETT’S LATEST DONATIONS
Buffett announced the conversion of 1,600 Class A shares of Berkshire Hathaway into 2,400,000 Class B shares, which were distributed to four family foundations. These included:

The Susan Thompson Buffett Foundation (1,500,000 shares)
The Sherwood Foundation (300,000 shares)
The Howard G. Buffett Foundation (300,000 shares)
The NoVo Foundation (300,000 shares)

This donation reduces Buffett’s holdings of Berkshire Class A shares to 206,363, marking a significant step in fulfilling the pledge he made in 2006 to donate the majority of his wealth. Since that pledge, he has already given away nearly 57% of his Berkshire shareholdings.

REFLECTION ON MORTALITY
In the letter, Buffett candidly discussed his thoughts on life and mortality. He acknowledged the inevitability of “Father Time” and reflected on the loss of his first wife, Susie, who passed away in 2004. The couple had always assumed she would outlive him and oversee the distribution of their wealth, but circumstances changed.

“Father Time always wins,” Buffett wrote. “To date, I’ve been very lucky, but before long, he will get around to me.”

Buffett highlighted the significant impact of his fortune on philanthropy, noting that his largest donation so far—approximately $43 billion—has gone to the Bill and Melinda Gates Foundation.

CHANGES TO HIS WILL
Buffett revealed that he has updated his will to clarify how the remaining 99.5% of his wealth will be distributed after his death. He expressed confidence in his three children—Susie, Howie, and Peter—to handle the gradual distribution of his Berkshire holdings.

The billionaire shared his belief in avoiding dynastic wealth, stating, “I’ve never wished to create a dynasty or pursue any plan that extended beyond the children.”

However, Buffett acknowledged the challenges of deploying such vast sums of money effectively. He noted that the wealth might take longer to distribute than his children’s lifetimes. To address this, he named three potential successor trustees, chosen for their familiarity with his children and their younger ages, to continue the work if necessary.

A unique clause in Buffett’s will requires his children to make unanimous decisions regarding the distribution of his wealth. He explained this by highlighting the complexities and risks involved in managing large-scale philanthropy, where those distributing significant amounts of money may face challenges or exploitation.

MESSAGE TO PARENTS

“When Susie died, her estate was roughly $3 billion, with about 96% of this sum going to our foundation. Additionally, she left $10 million to each of our three children, the first large gift we had given to any of them. These bequests reflected our belief that hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing,” said Buffet in the letter.

Buffett offered a piece of advice to parents in his letter, urging them to discuss their wills openly with their children. “When your children are mature, have them read your will before you sign it,” he wrote.

He encouraged families to ensure that children understand the reasoning behind their decisions and are prepared for the responsibilities they may face.