OMAHA, NEBRASKA – Legendary investor Warren Buffett, 94, has announced his latest philanthropic commitment, donating $6 billion worth of Berkshire Hathaway stock to the Bill & Melinda Gates Foundation and four family charities. This significant contribution, reported by Fox Business News on June 28, marks his largest single donation since he pledged to give away the bulk of his fortune in 2006.
The 30-day transfer will see 9.43 million Class B shares go to the Gates Foundation. An additional 943,384 shares are earmarked for the Susan Thompson Buffett Foundation, named after his late first wife. His children – Howard, Susie, and Peter – will each see 660,366 shares directed to their respective foundations: the Howard G. Buffett Foundation, the Sherwood Foundation, and the Novo Foundation.
This donation underscores Buffett's long-standing commitment to philanthropy. His lifetime contributions now total an astounding $60 billion, solidifying his position as one of the most generous philanthropists in history. His giving philosophy, often articulated through his "Giving Pledge" initiative with Bill Gates and Melinda French Gates, emphasizes returning wealth to society.
To facilitate the transfer, the Omaha-based trust converted 8,239 Class A shares into 12.3585 million Class B shares, which will then be distributed among the five foundations. Class A shares, the original stock issued by Berkshire Hathaway, carry a higher value and significant voting rights. Class B shares, created in 1996 to allow smaller investors to own a piece of Berkshire, are more easily transferred, valued, and monetized than their Class A counterparts.
Despite these substantial donations, Buffett maintains a firm grip on Berkshire Hathaway. He continues to hold nearly all the voting rights through his Class A shares, demonstrating his strategic approach to philanthropy that allows him to remain deeply involved in the company he built. Buffett still owns 13.8% of Berkshire Hathaway's reported outstanding shares.
Before this latest donation, Forbes estimated Buffett's net worth at $152 billion as of June 27, making him the world's fifth-richest person. "I have no debts, and the remaining Class A shares are worth about $145 billion, which is well over 99% of my net worth," Buffett stated. He attributes his immense wealth to "America's tailwinds and the power of compound interest," and his will stipulates that "approximately 99.5% of my fortune will be used for charitable activities."
Looking ahead, Buffett has also confirmed his plans to step down as CEO of Berkshire Hathaway by the end of this year. Greg Abel, 62, a billionaire investor and vice chairman since 2018, is slated to succeed him. At Berkshire Hathaway's annual shareholder meeting in Omaha, Buffett remarked, "I think it's time for Greg to take over as CEO of the company at the end of the year." This transition marks a new era for the conglomerate, though Buffett's philanthropic legacy is set to continue for generations.
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