As Warren Buffett steps down from the helm of Berkshire Hathaway, the 95-year-old billionaire is doubling down on another lifelong pursuit: giving away the majority of his wealth. Buffett announced in a Thanksgiving letter to shareholders yesterday (Nov. 10) that he will “step up the pace” of his charitable donations going forward. That include $1.3 billion worth of Class B Berkshire shares to four nonprofits run by his family.
Specifically, the Susan Thompson Buffett Foundation, named for his late first wife, will receive 1.5 million shares. The Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation—run by Buffett’s children Susie, Howard and Peter, respectively—will each get 400,000 shares.
Last year, Buffett used his Thanksgiving letter to outline his long-term philanthropic plan. Upon his passing, his remaining fortune—currently estimated at $147 billion—will be transferred to a charitable trust overseen by his kids. They will have ten years to distribute the funds, and if any of them are unable to serve, pre-selected alternate trustees will step in.
To help ensure his children, who are currently in their 60s and 70s, can meet that timeline, Buffett is accelerating the pace of donations to their foundations. “It would be a mistake to wager that all three—now at their peak in many respects—will enjoy my exceptional luck in delayed aging,” said Buffett, who has already given away more than $60 billion over the past two decades.
Earlier this year, Buffett surprised shareholders when he revealed that he will retire as CEO of Berkshire Hathaway by the end of 2025. His successor, Greg Abel, will take over, filling the enormous shoes of the man who transformed Berkshire from a struggling textile firm to an investment conglomerate.
Buffett, who remains Berkshire’s largest shareholder, said he plans to retain a “significant amount” of Class A shares until shareholders are comfortable with Abel’s leadership. “That level of confidence shouldn’t take long,” said Buffett, who noted that his children and the Berkshire directors “are already 100 percent behind Greg.”
Abel’s transition to CEO means that Buffett, long admired for his homespun wisdom at annual shareholder meetings and in Berkshire’s yearly reports, will no longer be the company’s public face. The billionaire said he will be “going quiet,” though he intends to continue writing an annual Thanksgiving message.
Despite his age, Buffett assured shareholders that he “generally” feels good and still goes into the office five days a week. But even the Oracle of Omaha admits that time catches up with everyone. “When balance, sight, hearing and memory are all on a persistently downward slope, you know Father Time is in the neighborhood,” said Buffett. “I was late in becoming old—its onset materially varies—but once it appears, it is not to be denied.”
Such quips are typical of Buffett, whose folksy attitude toward both investing and life has long charmed shareholders. The billionaire still lives in the same Omaha, Neb. home he purchased in 1958 and is as well known for his modesty and philanthropy as for his legendary investing success.
Buffett closed his Thanksgiving letter with a reflection on the meaning of “greatness,” writing that it comes not from money or power, but from kindness. “I wish all who read this a very happy Thanksgiving,” said Buffett. “Yes, even the jerks; it’s never too late to change.”