Warren Buffett opposes the formation of family wealth dynasties and donates $1.1 billion.

Warren Buffett, with a personal fortune of $150 billion, argued against creating "dynastic" wealth by appointing three independent trustees to manage his philanthropy. He also donated $1.1 billion in Berkshire Hathaway stock to four family foundations.

The 94-year-old legendary investor has promised to give away 99% of the fortune he built at Berkshire, the Omaha-based conglomerate he has been running since 1965, instead of leaving it to his three children.

Buffett believes that family wealth dynasties can lead to negative consequences such as hindering personal growth and straining relationships. Additionally, they create societal uncertainties because it is uncertain how future generations will distribute such wealth.

"Buffett wrote in a letter Monday that he never desired to establish a dynasty or pursue a plan beyond his children. He trusts the three children completely, but he is uncertain about the future generations' priorities, intelligence, and fidelity in managing the distribution of wealth amid a potentially different philanthropic landscape."

Successor trustees named

The Oracle of Omaha, who owns approximately 37.6% of Berkshire Class A shares, stated that the assets he has amassed may take longer to deploy than his children live. He has appointed three trustees of his charitable trust to potentially succeed his children in distributing his wealth. Buffett's children are currently 71, 69, and 66 years old.

""Susie, Howie, and Peter have been designated as potential successor trustees. They are well-known to my children and make sense to all of us. Although they are somewhat younger than my children, they are on the wait list. I hope that Susie, Howie, and Peter will disburse all of my assets," Buffett wrote."

The identity of the trustees were not revealed.

Since 2006, Buffett has been making annual donations to four family foundations. Through years of observation, he has built strong trust in his children's managerial ability and philanthropic ambition.

"During the 2006-2024 period, I had the opportunity to observe my children's actions and they have gained valuable knowledge about large-scale philanthropy and human behavior. While they appreciate financial comfort, they are not fixated on wealth. Their mother, who instilled these values in them, would be proud of them as well. So am I."

This year, Berkshire Hathaway, owned by Warren Buffett, reached a $1 trillion market cap, and its portfolio includes numerous well-established businesses, including Geico insurance, BNSF Railway, and consumer brands like Dairy Queen and See's Candies.