Category: Warren Buffett

(BRK.A), (BRK.B)

On November 25, Warren E. Buffett converted 1,600 Berkshire Hathaway Class A shares into 2.4 million Class B shares, gifting them to four family foundations. The Susan Thompson Buffett Foundation received 1.5 million shares, while The Sherwood Foundation, The Howard G. Buffett Foundation, and the NoVo Foundation each received 300,000 shares. This move reflects Buffett’s long-term commitment to philanthropy and his gradual transfer of wealth.

Buffett now holds 206,363 Class A shares, marking a 56.6% reduction since his 2006 pledge to give away most of his wealth. In 2004, before the passing of his first wife, Susie, the couple owned 508,998 shares, intending to distribute their fortune through philanthropy. After her death, Susie’s $3 billion estate largely funded their family foundation, with $10 million left to each of their three children.

Buffett emphasized his belief in leaving children “enough so they can do anything but not enough that they can do nothing.” Over the years, his children, Susie Jr., Howard, and Peter, have grown into capable philanthropists, managing foundations and overseeing significant charitable efforts. Buffett trusts them to handle the future distribution of his remaining Berkshire holdings, representing 99.5% of his wealth.

At 94, Buffett acknowledges the inevitability of aging but remains confident in his children’s ability to carry out his philanthropic vision. He also plans for potential successors to ensure the responsible deployment of his fortune. Reflecting on his life, Buffett expressed gratitude for his good fortune and reaffirmed his commitment to using wealth to create equal opportunities for others, rather than perpetuating dynastic riches.

Buffett concluded with advice for parents: discuss wills openly with children to avoid misunderstandings and foster unity. His own family has embraced his values, prioritizing philanthropy and simple living over materialism. As Buffett continues his journey, he takes pride in the enduring impact of his wealth and the shared commitment of his family to giving back.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

(BRK.A), (BRK.B)

With the rise of social media, false claims about Warren Buffett endorsing investment products or political candidates have increased. Buffett has clarified that he does not, and will not in the future, endorse any investment products or support political candidates.

Berkshire Hathaway issued the following statement:

In light of the increased usage of social media, there have been numerous fraudulent claims regarding Mr. Buffett’s
endorsement of investment products as well as his endorsement and support of political candidates. Mr. Buffett
does not currently and will not prospectively endorse investment products or endorse and support political candidates.

© 2024 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

(BRK.A), (BRK.B)

On November 21, renowned investor Warren E. Buffett made a significant philanthropic move by converting 1,600 A shares into 2,400,000 B shares. The purpose behind this strategic maneuver was to donate these B shares to four family foundations, continuing his longstanding tradition of charitable giving. The breakdown of the donations includes 1,500,000 shares to The Susan Thompson Buffett Foundation, and 300,000 shares each to The Sherwood Foundation, The Howard G. Buffett Foundation, and NoVo Foundation. These generous contributions have been officially delivered as of today.

In a heartfelt message to his fellow shareholders, Mr. Buffett reflected on the recurring nature of these donations, noting their similarity to those made during the previous Thanksgiving. These contributions supplement the lifetime pledges he made in 2006, outlining various conditions that are consistently met by the recipients, as detailed on berkshirehathaway.com.

Buffett, now 93 years old, expressed amazement at the fact that his three children are between 65 and 70 years old. Over the years, their respective foundations have disbursed substantial sums, often supporting different causes. One common belief shared by the Buffett family is a skepticism toward dynastic wealth, despite its legality and prevalence worldwide. They acknowledge that wealth, in itself, does not guarantee wisdom or virtue. Emphasizing their faith in the positive impact of capitalism, despite its flaws, they celebrate the opportunities the United States has afforded them.

Buffett’s three children serve as both executors of his current will and trustees of the charitable trust set to receive 99%-plus of his wealth upon his demise. Although unprepared for this responsibility in 2006, they are now fully equipped to manage this significant philanthropic legacy. The testamentary trust, designed to be self-liquidating after a decade, will operate with a lean staff and be funded, to the extent possible, by Berkshire shares.

In acknowledging the inevitability of human errors within large organizations, public or private, Buffett expressed confidence in Berkshire’s ability to recognize and rectify mistakes. He assured shareholders that the company is well-positioned with the right CEO and Board of Directors to ensure its enduring success.

Looking ahead, Buffett stressed the importance of maintaining Berkshire’s distinctive characteristics and behavior. While his substantial holdings will provide short-term support, he emphasized that Berkshire will ultimately earn the reputation it deserves. Anticipating changes in laws related to philanthropy, he emphasized the need for a broad charter for the testamentary trust and the importance of wise trustees guiding its operations.

In a move that reflects transparency and openness, Buffett outlined his posthumous plans, assuring that the disposition of his assets will be an open book. Rejecting elaborate trusts or foreign entities, he opted for a simple will that will be available for public inspection at the Douglas County Courthouse.

As Thanksgiving approaches, Buffett expressed gratitude for the opportunities life has afforded him and extended warm wishes to all shareholders, hoping for health and happiness for them and their families. This latest act of generosity continues to expand Warren Buffett’s legacy as not only a financial wizard but also a philanthropist committed to making a positive impact on the world.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

(BRK.A), (BRK.B)

Warren Buffett has made a significant donation by converting a substantial number of his shares in Berkshire Hathaway. In a move aimed at contributing to the greater good, Buffett has converted 9,129 A shares into 13,693,500 B shares. The purpose behind this conversion is to donate 13,693,432 shares of Berkshire Hathaway’s “B” stock to five different foundations.

Among the beneficiaries, the Bill & Melinda Gates Foundation Trust will receive 10,453,008 shares, while the Susan Thompson Buffett Foundation will receive 1,045,300 shares. The Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation will each receive 731,708 shares. These generous donations were finalized and delivered June 21.

This significant act of philanthropy has altered the composition of Mr. Buffett’s ownership in Berkshire Hathaway. His holdings now consist of 218,287 A shares and 344 B shares. Upon making these donations, Mr. Buffett provided insightful comments regarding the mathematics behind his lifetime commitments to these five foundations.

He highlighted that the original schedule for annual grants was established on June 26, 2006, and has since been supplemented by significant additional grants to four of the five recipients. At the time the commitments were made, Mr. Buffett owned 474,998 Berkshire A shares, which were valued at approximately $43 billion. These shares represented over 98% of his net worth. It’s worth noting that he has converted A shares into B shares on previous occasions prior to making philanthropic contributions.

Over the course of the following 17 years, Mr. Buffett has refrained from buying or selling any A or B shares, and he has no intentions of doing so in the future. The five foundations have received Berkshire B shares, with an initial value of around $50 billion, surpassing Mr. Buffett’s entire net worth in 2006. It is important to mention that he holds no debts, and his remaining A shares are currently valued at approximately $112 billion, accounting for well over 99% of his net worth.

Mr. Buffett emphasized that there is nothing extraordinary behind Berkshire Hathaway’s success. It is the result of a combination of factors such as a long runway for growth, sound and straightforward decision-making, the favorable economic conditions in the United States, and the compounding effects of investments. This wealth has enabled him to make substantial contributions to philanthropic causes, as stated in his will, where he has designated that over 99% of his estate will be directed towards philanthropic endeavors.

© 2023 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

(BRK.A), (BRK.B)

In his Berkshire Hathaway Chairman’s Letter that opens the Berkshire Hathway 2022 Annual Report, Warren Buffett took umbrage with politicians and other voices that attack corporate share repurchases. He wrote:

Gains from value-accretive repurchases, it should be emphasized, benefit all owners – in every respect. Imagine, if you will, three fully-informed shareholders of a local auto dealership, one of whom manages the business. Imagine, further, that one of the passive owners wishes to sell his interest back to the company at a price attractive to the two continuing shareholders. When completed, has this transaction harmed anyone? Is the manager somehow favored over the continuing passive owners? Has the public been hurt?

When you are told that all repurchases are harmful to shareholders or to the country, or particularly beneficial to CEOs, you are listening to either an economic illiterate or a silver-tongued demagogue (characters that are not mutually exclusive).

In 2022, Berkshire repurchased a modest 1.2% of the company’s outstanding shares.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

(BRK.A), (BRK.B)

It’s a very happy Thanksgiving at a number of charities that recently received large donations from Warren Buffett, who continues to give away his fortune in Berkshire Hathaway stock.

Buffett donated 2.4 million B shares of Berkshire Hathaway, with a value of roughly $759 million, to a number of charities, including 1.5 million shares to the Susan T. Buffett Foundation.

The Susan T. Buffett Foundation has offered scholarships to college students in Nebraska for over 50 years, and is named for his late first-wife.

Additional charities receiving donated shares include:

A total of 900,000 shares split between charities overseen by his children Howard, Susan and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation and the Novo Foundation.

Since 2006, Warren Buffett has donated more than half of his Berkshire shares, with a value of over $46 billion at the time of the donations.

© 2022 David Mazor

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.

(BRK.A), (BRK.B)

Today, Warren E. Buffett has converted 9,608 A shares into 14,412,000 B shares in order to donate 14,414,136 shares of Berkshire Hathaway “B” stock to five foundations: 11,003,166 to the Bill & Melinda Gates Foundation Trust, 1,100,316 shares to the Susan Thompson Buffett Foundation and 770,218 shares to each of the Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation. The donations have been delivered today.

Mr. Buffett’s ownership of Berkshire now consists of 229,016 A shares and 276 B shares.

Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.