Esteemed investor Warren Buffett is planning to donate $6 billion in Berkshire Hathaway stock to five esteemed foundations. This latest act of philanthropy brings the total donations made since 2006 to an approximate $60 billion, assessed at their value upon receipt.
Late on Friday, Mr. Buffett declared that the stock of Berkshire Hathaway, a conglomerate owning various businesses including Geico and Dairy Queen, will be handed over on Monday. The shares donated are nearly 12.4 million of the Class B stock variety, a type with a more affordable price tag than the original Class A shares. The recent closing price for these B shares was $485.68 each.
The primary recipient will be the Bill & Melinda Gates Foundation Trust, set to receive 9.4 million shares. Other beneficiaries include the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation, each receiving hundreds of thousands of shares. This announcement follows a significant declaration by Buffett last year, detailing his plans to cease donations to the Gates Foundation after his passing while leaving the distribution of his remaining wealth to his three children’s discretion.
Berkshire Hathaway’s Class B stock has seen an increase of 19.1% in the last year, outperforming the broad U.S. stock market’s return of 14.1%, inclusive of dividends. Buffett’s prudent approach to investments, buying companies at favorable prices, and practicing caution when prices seem inflated, has largely contributed to his amassed fortune of nearly $145 billion, essentially all of it in Berkshire Hathaway’s stock.
Reports indicate that Mr. Buffett, in a statement, credited nothing extraordinary at Berkshire for his wealth. He pointed to a long runway, sound decisions, the American tailwind, and compounding effects as the source. Buffett further revealed that his will dictates approximately 99½% of his estate to be designated for philanthropic purposes.
Warren Buffett continues his philanthropic legacy with an impressive $6 billion donation. The significance of this should not be overlooked. As this story unfolds, it serves as a reminder of the impact of philanthropy on our society.
