Buffett Gives Away $5.3 Billion, Says Children Will Manage His Estate

On Friday, Warren Buffett made his largest annual donation to date, worth $5.3 billion in shares, to five different charities.

The renowned investor, who will turn 94 in August, donated more than 13 million Class B shares by converting 8,674 of his Berkshire Class A shares, as stated in a Friday announcement. Of the 9.93 million shares given away, 6.67 million went to the Bill & Melinda Gates Foundation, with the remaining 3.26 million shares given to the Susan Thompson Buffett Foundation, named after his late first wife, and the three charities led by his children Howard, Susan and Peter Buffett.

Since 2006, Buffett has been giving away his fortune built at Berkshire, the Omaha-based conglomerate he started running in 1965, to five charities annually.

On Friday, Buffett's ownership of Berkshire A shares and B shares increased to 207,963 and 2,586 respectively, valuing at approximately $130 billion.

New charitable trust

After his death, Buffett's enormous fortune from building a unique conglomerate will be directed to a new charitable trust managed by his three children, as he clarified in an interview with the Wall Street Journal.

"He advised the Journal that the resource should be utilized to aid those who have not been as fortunate as he and his children have been. With eight billion people in the world, he and his family fall within the luckiest 0.1% or so. There are numerous ways to assist people."

Buffett has previously stated that his three children serve as both the executors of his will and the named trustees of the charitable trust that will receive over 99% of his wealth.

Buffett announced that the Bill & Melinda Gates Foundation will no longer receive donations after his death, following his resignation as a trustee at the foundation in June 2021 amidst the Gates couple's divorce.

In May, at Berkshire's annual meeting, Buffett openly discussed with shareholders his thoughts on a future without him as CEO, looking contemplative as he considered his age and the memory of his late business partner, Charlie Munger.

Berkshire's vice chairman for non-insurance operations, Greg Abel, has been appointed as Buffett's successor and has assumed most of the duties at the conglomerate.

Buffett previously said his will will be made public after his death.

In November, Buffett stated that after his death, the disposition of his assets will be transparent, with no complex trusts or offshore entities to evade public scrutiny, but rather a straightforward will that can be accessed at the Douglas County Courthouse.