Berkshire Hathaway chairman and CEO Warren Buffett. Source: REUTERS.
Warren Buffett, the esteemed 93-year-old chairman of Berkshire Hathaway, has announced significant revisions to his estate plans, marking a departure from his longstanding commitment to the Bill & Melinda Gates Foundation.
Buffett, in an interview with the Wall Street Journal, disclosed that his posthumous donations will no longer flow to the Gates Foundation, but will instead be managed by a new charitable trust overseen by his three children.
End of an Era for Gates Foundation?
“The Gates Foundation has no money coming after my death,” Buffett bluntly stated, signalling a strategic shift in his philanthropic priorities. Previously, Buffett had earmarked over 99 per cent of his estate for the Gates Foundation and four other family-related charities.
Trust in Family Values
Motivated by his unwavering trust in his children’s values and ability to steward his legacy, Buffett stressed on his confidence in their respective philanthropic endeavours. Each of his children already heads a charitable organization.
“I feel very, very good about the values of my three children, and I have 100 per cent trust in how they will carry things out,” Buffett affirmed.
Continued Support During Lifetime
Despite the posthumous redirection, Buffett continues his charitable contributions to the Gates Foundation during his lifetime, highlighting his ongoing commitment to philanthropy.
Financial Implications & Berkshire Hathaway’s Role
In tandem with these estate adjustments, Berkshire Hathaway announced a significant restructuring of Buffett’s shares. Around 9,000 Class A shares were converted into over 13 million Class B shares, with 9.3 million of these newly created shares designated for the Bill & Melinda Gates Foundation Trust. The remainder will bolster the endowments of the four Buffett family charities.
Gratitude Amidst Change
Mark Suzman, CEO of the Gates Foundation, expressed gratitude for Buffett’s longstanding support, acknowledging his contributions of approximately $43 billion over the years. Despite recent changes, Suzman underscored the foundation’s appreciation for Buffett’s generosity and its enduring impact on their mission.
Financial Overview
After the recent donations, Buffett retains ownership of 207,963 Berkshire Hathaway Class A shares and 2,586 Class B shares, valued collectively at an estimated $128 billion
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