(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.