Warren Buffett Donates Another $1 Billion. He Has Estate-Planning Advice for Everyone.
Four family foundations will receive shares worth more than $1 billion
Four family foundations will receive shares worth more than $1 billion
At age 94, Warren Buffett is reflecting on life, wealth and mortality.
The legendary investor’s company, Berkshire Hathaway , said Monday that Buffett will again give a portion of his Berkshire shares, in this case worth about $1.15 billion, to four family foundations. The donations leave him holding 206,363 Class A shares worth about $148 billion.
As he did last November, Buffett is converting 1,600 Class A shares into 2.4 million Class B shares, which hold less voting rights, before donating them to the Susan Thompson Buffett Foundation, named for his late first wife, and to foundations led by his children.
The Thanksgiving-time donations supplement annual gifts to the four foundations, as well as to the Bill & Melinda Gates Foundation, that Buffett has made since 2006, when he unveiled plans to make major gifts throughout his lifetime.
In a message accompanying Monday’s news of the donations, Buffett discussed his plans for his three children, Susie, Howard and Peter Buffett , to distribute the Berkshire shares he owns at his death. Buffett told The Wall Street Journal in June that the Gates Foundation had no money coming after he dies.
The three Buffett children, now in their 60s and 70s, will need to decide unanimously what philanthropic purposes their father’s money serves. Buffett said in his new comments to shareholders that the requirement will give his children some degree of protection from an expected bombardment of requests.
“Those who can distribute huge sums are forever regarded as ‘targets of opportunity,’ ” Buffett wrote. “This unpleasant reality comes with the territory. Hence, the ‘unanimous decision’ provision. That restriction enables an immediate and final reply to grant-seekers: ‘It’s not something that would ever receive my brother’s consent.’ And that answer will improve the lives of my children.”
Buffett wrote that while potential successor trustees have been chosen, he hopes that Susie, Howard and Peter Buffett are themselves the ones to distribute all of his assets.
“I know the three well and trust them completely,” he wrote.
Buffett’s huge position in Berkshire means a rapid selling of his stock could jolt the share price. He wrote that his children should distribute his holdings gradually, and in a manner that “in no way betrays the exceptional trust Berkshire shareholders bestowed upon Charlie Munger and me.”
Buffett offered a suggestion for all parents, wealthy or not: “When your children are mature, have them read your will before you sign it.” He said it is better for children to be able to ask questions when a parent is still able to respond.
In discussing his fortune, Buffett, ever the teacher, highlighted the importance of compounding, especially after many years of investing.
“The real action from compounding takes place in the final twenty years of a lifetime,” he wrote. “By not stepping on any banana peels, I now remain in circulation at 94 with huge sums in savings—call these units of deferred consumption—that can be passed along to others who were given a very short straw at birth.” undefined undefined Berkshire’s Class B shares have rallied 34% this year, compared with a 26% gain by the S&P 500. Earlier this year the company joined a small club of U.S. businesses worth more than $1 trillion.
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Tech investor was one of the most outspoken supporters of Trump in Silicon Valley
President-elect Donald Trump named a Silicon Valley investor close to Elon Musk as the White House’s artificial intelligence and cryptocurrency policy chief, signaling the growing influence of tech leaders and loyalists in the new administration .
David Sacks , a former PayPal executive, will serve as the “White House A.I. & Crypto Czar,” Trump said on his social-media platform Truth Social.
“In this important role, David will guide policy for the Administration in Artificial Intelligence and Cryptocurrency, two areas critical to the future of American competitiveness,” he posted.
Musk and Vice President-elect JD Vance chimed in with congratulatory messages on X.
Sacks was one of the first vocal supporters of Trump in Silicon Valley, a region that typically leans Democratic. He hosted a fundraiser for Trump in San Francisco in June that raised more than $12 million for Trump’s campaign. Sacks often used his “All-In” podcast to broadcast his support for the Republican’s cause.
The fundraiser drew several cryptocurrency executives and tech investors. Some attendees were concerned that America could lose its competitiveness in emerging areas such as artificial intelligence because of overregulation.
Many tech leaders had hoped the next president would have a friendlier stance on cryptocurrencies, which had come under scrutiny during the Biden administration.
“What the crypto industry has been asking for more than anything else is a clear legal framework to operate under. If Trump wins, the industry will get this, and more innovation will happen in the U.S.,” Sacks posted on X in July.
The tech industry has also pressed for friendlier federal policies around AI and successfully lobbied to quash a California AI bill industry leaders said would kill innovation.
Sacks’ venture-capital firm, Craft Ventures, has invested in crypto and AI startups. Sacks himself has led investment rounds in many. He has previously invested in companies such as Slack, SpaceX, Uber and Facebook.
Sacks was the former chief operating officer of PayPal, whose founders included Musk and Peter Thiel . The group, called the “PayPal mafia,” has been front and center this election because of its financial muscle and influence in drumming up support for Trump.