Warren E. Buffett; Photo Wikipedia
Investor Warren E. Buffett has donated over 12.3 million shares of Berkshire Hathaway stock to five charitable foundations.
This action, completed on June 30, continues his long-term commitment to philanthropy.
This specific donation round is valued at $6 billion, based on the Class B shares’ closing price of around $485.68 per share.
The donation involved 12,358,321 Class B shares. These shares were allocated as follows:
- 9,433,839 shares to the Bill & Melinda Gates Foundation Trust
- 943,384 shares to the Susan Thompson Buffett Foundation
- 660,366 shares each to the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation
Following this donation, Mr. Buffett’s holdings now consist of 198,117 Class A shares and 1,144 Class B shares of Berkshire Hathaway stock.
These remaining shares are estimated to be worth around $145 billion. This amount represents over 99% of his net worth, demonstrating his continued dedication to his pledge.
A Long-Term Giving Pledge
This donation builds on a pledge Buffett made in 2006. At that time, he committed the majority of his wealth to philanthropy.
He held 474,998 shares of Berkshire Hathaway stock then, valued at about $43 billion. This represented more than 98% of his total wealth at the time.
In the 19 years since, he has not bought or sold any of his shares for personal use. Instead, he has continued giving to the five selected foundations regularly.
In total, these organizations have now received Berkshire shares that were worth about $60 billion at the time they were donated. This total already exceeds Buffett’s net worth at the time of his original pledge.
An Approach to Wealth
Operating without personal debts, Buffett continues to hold the majority of his wealth in Berkshire Hathaway shares. In a personal statement released alongside the donation, he commented:
“Nothing extraordinary has occurred at Berkshire; a very long runway, simple and generally sound decisions, the American tailwind, and compounding effects produced my current wealth. My will provides that about 99½% % of my estate is destined for philanthropic usage.”
He noted that the conditions set out in his 2006 pledge continue to be met. The lifetime giving commitments will remain in place unless certain conditions are triggered.
He added that the procedures outlined in his November 21, 2023, release remain unchanged. His will, he stated, shall become public upon his death.
Beyond his giving, Buffett also co-founded The Giving Pledge in 2010 with Bill and Melinda Gates.
This initiative encourages other billionaires worldwide to commit the majority of their wealth to philanthropy, either during their lifetimes or upon their death, fostering a broader culture of significant charitable giving.
It has since grown to include hundreds of signatories.
The Business Behind the Shares
Berkshire Hathaway, originally a textile manufacturer, transformed under Buffett’s management into a large and diverse holding company. It operates in a wide range of sectors, including:
- Insurance and reinsurance (e.g., GEICO, Berkshire Hathaway Reinsurance Group)
- Utilities and energy (e.g., Berkshire Hathaway Energy, involved in power generation and distribution)
- Freight rail transportation (e.g., BNSF Railway, one of North America’s largest rail systems)
- Manufacturing, retail, and services (including diverse products from consumer goods to industrial items, and various retail chains)
- Major investments in publicly traded companies like Apple, Coca-Cola, and American Express
The shares Buffett donates give foundations partial ownership in these businesses.
Donating Class B shares, which have a lower price and are often more easily transferred and liquidated than Class A shares, facilitates this process for the charities.
This allows them to hold or sell shares to fund their work, often in health, education, agriculture, and social justice, supporting operations that address global challenges and societal needs.
The Foundations and Their Impact
The five foundations that receive these shares reflect Buffett’s values and personal connections.
- The Susan Thompson Buffett Foundation, named after his late wife, focuses on education, particularly through scholarships for Nebraska students, and reproductive health initiatives.
- The Sherwood Foundation, run by his daughter Susie, primarily supports social justice initiatives and environmental efforts within Nebraska.
- The Howard G. Buffett Foundation, led by his son Howard, focuses on global food security, conflict mitigation, and public safety.
- The NoVo Foundation, co-founded by his son Peter and his wife Jennifer, works to advance the rights of women and girls globally, focusing on areas like ending violence and promoting economic empowerment.
- The Gates Foundation Trust supports global health, development, and education. Buffett’s contributions have significantly bolstered its capacity to operate on a global scale, funding initiatives from disease eradication to poverty alleviation. It has been publicly stated that Buffett’s annual gifts to the Gates Foundation will conclude after his death, and the Gates Foundation itself plans to spend down its endowment over the coming decades, aiming to close its doors in 2045 after distributing approximately $200 billion.
Buffett’s method of giving, through long-term, stock-based donations, aims to provide these organizations with assets that can grow and sustain their missions over time.
This approach offers stability and a growing resource base, enabling the foundations to plan and execute their programs more effectively over decades.
