Legendary investor and Berkshire Hathaway CEO Warren Buffett’s donations surpassed $50 billion — and with it, the investor’s total wealth in 2006.
• Compound interest effect made enormous wealth possible
• Will: 99 percent of Buffett’s fortune will be donated
• The Giving Pledge: Bill & Melinda Gates Foundation’s main giving target
Star investor Warren Buffett announced in 2006 that he would donate 99 percent of his wealth to charity. At the time, he owned $43 billion in Berkshire Hathaway A shares. As a member of The Giving Pledge, Warren Buffett pledged to donate most of his wealth to charity. According to the CNBC report, his estate stipulates that the gifts should be processed within ten years of the opening of his will. These are made through annual donations of Berkshire B shares.
99 percent of Buffett’s fortune is to be donated
Neither he nor his family made any sacrifices for his fortune, the “Oracle of Omaha” explained in a previous interview with CNBC. In addition to the performance of his employees and the American economy, it was primarily the compound interest effect that ensured his enormous wealth. Buffett has no debt and will not sell his stock portfolio, which accounts for 98 percent of his total wealth. In fact, he has not bought or sold any shares since he made the decision in 2006.
Warren Buffett’s children will therefore only inherit a comparatively small part of his fortune. “After much observation of super-rich families, here’s my recommendation: give kids enough to do anything, but not enough that they don’t have to do anything,” he wrote in a note to shareholders a few years ago, according to CNBC. Buffett’s three children, who are now in their 60s, themselves head three foundations — the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation — which regularly receive donations from the Buffett fortune.
Primary Funding Destination: Bill & Melinda Gates Foundation
With recent donations to the Bill & Melinda Gates Foundation, his children’s three foundations, and the Tompson Buffett Foundation, named after his late first wife, Warren Buffett has already given more than he had when he joined The Giving Pledge in 2006 . Buffett told CNBC that he had converted 9,000 Berkshire Hathaway A shares into 13.7 million Berkshire Hathaway B shares to give to the five foundations. 10.5 million shares went to the Microsoft founder’s foundation and 1.05 million shares to the Susan Thompson Buffett Foundation. The Buffett family foundations received a total of 2.2 million shares in the most recent gift, split evenly.
Following the recent donation, the stock market legend now owns 218,287 A shares and 344 B shares. As of the close of June 23, 2023, the A shares are worth $507,000 each and the B shares are worth $335.41 each.
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