Warren Buffett redirects posthumous donations away from Gates Foundation
What's the story
Warren Buffett, the 93-year-old Chairman of Berkshire Hathaway, has announced changes to his will that shall affect the allocation of his wealth after his death. In an interview with The Wall Street Journal, he revealed that posthumously, no donations will be made to the Bill & Melinda Gates Foundation. Instead, his fortune will be directed toward a new charitable trust managed by his three children.
Decision rationale
Trust in children influences will changes
Buffett's decision to redirect his wealth was influenced by his faith in his children's values and their ability to distribute his wealth properly. He stated, "The Gates Foundation has no money coming after my death." He further expressed complete trust in his children, saying, "I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out."
Share conversion
Buffett converts shares, continues donations during lifetime
Despite the changes in his will, Buffett continues to donate to the Gates Foundation during his lifetime. Berkshire Hathaway announced that he is converting roughly 9,000 Class A shares into over 13 million Class B stocks. Approximately 9.3 million of these shares will be allocated to the Bill & Melinda Gates Foundation Trust, while the remainder will be distributed among four Buffett family charities.
Gratitude expressed
Gates Foundation expresses gratitude for Buffett's contributions
Mark Suzman, CEO of the Gates Foundation, expressed gratitude for Buffett's generosity over more than 18 years of contributions and advice. "We are deeply grateful for his most recent gift and contributions totaling approximately $43 billion to our work," Suzman stated. This statement came in response to the news of Buffett's revised will and his continued support during his lifetime.
Family contributions
Past donations to family charities
In recent years, Buffett has made substantial donations to his family's charities. He donated about $870 million in 2023 and around $750 million in 2022. Buffett currently owns 207,963 Class A shares and 2,586 Class B shares, with a total share value of approximately $128 billion.