Warren Buffett Donates Berkshire Shares to Charity and Prepares for the Future
Nov. 23, 2023 07:06 AMKey Points
- - Warren Buffett has donated $866 million worth of Berkshire Hathaway shares to charitable organizations.
- - He has a commitment to donate more than 99% of his wealth to charitable causes.
- - Greg Abel is expected to succeed Buffett as CEO of Berkshire Hathaway.
- - Buffett holds over $318 billion in stocks, with half of that invested in Apple.
- - The transition to new leadership in Berkshire Hathaway is a significant event in the business world.
Warren Buffett, the 93-year-old veteran American investor, has announced that he has donated $866 million worth of Berkshire Hathaway shares to four charitable organizations. While he states that he is in good health, Buffett is also aware that his time is limited. The question now arises: What will happen to Berkshire Hathaway after his departure?
The Donation of the Billonaire
Warren Buffett is perhaps the greatest living legend in the world of investments. He is admired by the financial world and serves as an example to investors with his famous "Value Investing" approach.
Yesterday, the billionaire announced that he donated 1.5 million Class B shares of Berkshire Hathaway to the Susan Thompson Buffett Foundation. The organization, named after his late first wife, focuses on reproductive health.
Buffett also donated an additional 900,000 Class B shares, divided equally among charitable organizations led by his children, Howard, Susan, and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation, and the NoVo Foundation.
These donations complement the $759 million worth of Berkshire shares that Buffett donated to charitable organizations around the same time last year, just before the Thanksgiving holiday in the United States.
Buffett also sent a letter to shareholders, reiterating his commitment to donate more than 99% of his wealth to charitable causes and stating that his children would act as executors of his will. He emphasized that Berkshire was "built to last" and would remain in good hands.
While Warren Buffett has faced some health issues, he has never wanted to step down as CEO of Berkshire, even when he battled prostate cancer in 2012.
"At 93, I feel terrific, but I am fully aware that I am playing in extra time," Buffett said in the letter.
It is expected that Greg Abel, a 61-year-old vice chairman of Berkshire, will succeed Buffett as CEO, while Howard Buffett will become non-executive chairman. "We have the right CEO to succeed me and the right board of directors," Buffett wrote.
Buffett is currently the fifth richest person in the world, with a fortune of $120.5 billion, according to Forbes magazine. He has been leading Berkshire continuously since 1965.
The conglomerate owns dozens of businesses, including the BNSF railway, Geico auto insurance, industrial and energy companies, and well-known consumer brands such as Dairy Queen and Fruit of the Loom.
Buffett also holds over $318 billion in stocks, with approximately half of that invested in Apple (AAPL).
As Warren Buffett prepares for the future, the financial world will be watching closely to see how Berkshire Hathaway will navigate the post-Buffett era. The company's success has been closely tied to Buffett's leadership and investment strategies, making the transition to new leadership a significant event in the business world.
