On Monday, Warren Buffett declared that he has pinpointed three individuals who could potentially take over the responsibility of donating his $150 billion fortune, succeeding his children. The 94-year-old billionaire investor also disclosed a philanthropic contribution exceeding $1 billion in Berkshire Hathaway shares to four Buffett family foundations. In a message addressed to shareholders, Buffett mentioned that he has entrusted his children with “full responsibility for gradually dispersing all of my Berkshire holdings.” However, understanding the challenges posed by this endeavor, particularly given the ages of his children—66, 69, and 71—he has earmarked three possible successor trustees.
While he did not reveal the identities of these successors, he noted that they are “somewhat younger” than his children and “well acquainted” with them. The transfer of Berkshire stock comprises 1,600 Class A shares and 2.4 million Class B shares, collectively valued at over $1.14 billion based on the closing price from last Friday. The Susan Thompson Buffett Foundation, named after his first wife, is set to receive 1.5 million shares.
Each of his three children’s foundations will get 300,000 shares. Over the years, Buffett’s approach to philanthropy has undergone significant changes.
Buffett’s announcement regarding succession planning
In 2006, he committed to donating 85% of his Berkshire stock, primarily aimed at the Bill & Melinda Gates Foundation, while the remainder would be shared among the four Buffett family foundations. When he co-established the Giving Pledge in 2010 alongside Bill and Melinda Gates, he escalated his promise to 99% of his wealth. Earlier this year, Buffett amended his pledge recipients, opting to discontinue contributions to the Gates Foundation.
Instead, he intends to entrust his entire fortune to his children, a choice that has been facilitated by his observation of their growth in managing large-scale philanthropic endeavors over the years. Since 2006, Buffett has donated more than half of his Berkshire shares. Despite these generous contributions, the company’s stock price has increased remarkably, enhancing Buffett’s wealth to an estimated $150 billion.
The stake in Berkshire allocated for his children constitutes 99.5% of his overall wealth. The iconic investor remains dedicated to his philanthropic ideals, ensuring that his fortune will benefit charitable initiatives for many years to come. Buffett has vowed to donate 99% of his wealth to charitable causes during his lifetime or shortly after his passing.
