The Key Takeaways
- Warren Buffett said that on Monday, Berkshire Hathaway CEO Warren Buffett had identified at least three individuals who could succeed him and his children as they try to distribute his $150 billion fortune.
- Buffett has also revealed that he will donate over $1 billion in Berkshire Stock to four Buffett Foundations.
- The 94-year old man has promised to donate 99 percent of his fortune to charities during his lifetime, or within a few months after his passing.
Warren Buffett announced on Monday that he has identified a second group of successors who will carry out the pledge he made to donate almost all of his fortune.
Buffett wrote in a shareholder letter that he gave his children a share of the company. “full responsibility for gradually distributing all of my Berkshire holdings.” He acknowledged, however, the difficulty the three of them—aged 66, 69, and 71—may have in distributing a fortune larger than most economies in their remaining lifetimes.
“As such, three potential successor trustees have been designated,” Buffett wrote that he did not identify the successors by name, but added they are “somewhat younger” He is more than a father to his children “well known” By them.
“But these successors are on the wait list. I hope Susie, Howie and Peter themselves disburse all of my assets,” the Berkshire Hathaway (BRK.A; BRK.B) CEO added.
Buffett donates $1 Billion to Family Foundations
Buffett's revelation came alongside the announcement that he was donating more than $1 billion to his family’s charitable foundations as part of the 94-year-old's longstanding pledge to give away most of his wealth within his lifetime or shortly after his death.
Buffett said on Monday that he is converting 1,600 class A shares in Berkshire Hathaway into 2.4 million shares Class B, which are valued at $1.14 billion. This was the closing price of Friday. Susan Thompson Buffett Foundation will get 1.5 million shares. The foundation is named after Buffett’s wife Susan Thompson, who passed away in 2004. His three foundations, each receiving 300,000 shares will be named after his children.
How Buffett's Giving Plans Have Changed
Buffett made his first commitment in 2006, to give away at least 85% (of the stock) of Berkshire. Buffett first pledged in 2006 to give 85% of Berkshire’s stock away. Buffett increased his pledge from 99% to 99% when he launched The Giving Pledge in 2010, an initiative encouraging America’s wealthiest to dedicate more than 50% to charitable initiatives during their lifetimes, or in their wills.
Buffett’s pledge recipients changed this year, when he revealed that he was no longer donating money to the Gates Foundation. Instead, a plan requiring unanimous consent on charitable donations required Buffett to give his fortune to all of his children.
Buffett explained in his letter on Monday why he decided to redirect donations and explain his children “were not ready to handle the staggering wealth that Berkshire shares had generated” When he made the first pledge. “The 2006-2024 period gave me the chance to observe each of my children in action and they have learned much about large-scale philanthropy and human behavior,” He said.
Buffett has donated more than half his Berkshire Stock since 2006. The stock of the conglomerate has increased eight-fold in the past 20 years, increasing the wealth of the legend investor to estimated $150 billion. Buffett said on Monday that the Berkshire stake, which he has instructed his children to sell in full, accounts for 99.5% his fortune.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.