The world’s most famous investor Warren Buffett will give away almost all of his US$150 billion (A$231 billion) fortune to charities overseen by his three children.
The 94-year-old Berkshire Hathaway (NYSE: BRK.B) Chairman and CEO said he would donate 99.5% of his remaining wealth to a charitable trust overseen by his daughter Susie Junior and sons Howie and Peter when he dies.
Buffett will convert 1,600 Berkshire Hathaway A shares into 2,400,000 B shares to give them to four family foundations: 1,500,000 shares to The Susan Thompson Buffett Foundation and 300,000 shares to each of The Sherwood Foundation, The Howard G. Buffett Foundation and NoVo Foundation.
Buffet is known as the Oracle of Omaha for the exceptional investment performance of the global conglomerate he has managed since 1965, and the fact he continues to live in the American town where he was born.
In a letter to Berkshire Hathaway shareholders, Buffet said the gifts would reduce his holdings of Class A shares to 206,363, a 56.6% decrease since his 2006 pledge.
When his first wife Susie died in 2004, about 96% of her $3 billion estate was distributed to their foundation with another $10 million given to the three children, the first large gift they had received from their parents.
“These bequests reflected our belief that hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing,” Buffett wrote.
“Susie and I had long encouraged our children in small philanthropic activities and had been pleased with their enthusiasm, diligence and results. At her death, however, they were not ready to handle the staggering wealth that Berkshire shares had generated.
“The children have now more than justified our hopes and, upon my death, will have full responsibility for gradually distributing all of my Berkshire holdings.”
Berkshire Hathaway B class shares closed at $477.43, up 86 cents (0.18%), capitalising the company at $1.03 trillion.
