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After the shareholders' meeting in May, Buffett rarely spoke out publicly!
Recently, the US media published an exclusive interview with Warren E. Buffett, a well-known American investor, which revealed Buffett's latest testamentary arrangement: After Buffett's death, all the remaining wealth will be donated to a newly established charitable trust, which will be jointly managed by his three children.
In addition, Buffett also mentioned that after his death, he no longer "has the money to go to the Gates Foundation". According to statistics, between 2006 and 2023, Buffett donated $39.3 billion to the Gates Foundation.
A few days ago, Warren Buffett made his biggest annual gift to date: more than $5.3 billion worth of Berkshire Hathaway shares to five charities, with a total of 9.93 million shares going to the Bill & Melinda Gates Foundation. After the donation, Buffett owns 207963 Berkshire A shares and 2,586 B shares, worth about $130 billion.
Let's see the details -
Huge wealth goes to new charitable trusts to help "the less fortunate"
In August this year, Warren Buffett will turn 94 years old. After Charlie Munger left, Buffett also put "afterlife" on the agenda.
In a recent interview with the Wall Street Journal, Buffett said that according to the latest estate arrangement, after his death, the vast wealth he has accumulated will be used for a new charitable trust overseen by his three children.
"It should be used to help people who aren't as lucky as we are," Buffett said, "and there are 8 billion people in the world, me and my children, and we've been in the luckiest 1 percent or so, and there are many ways to help people." ”
Warren Buffett said that he has amended his will several times. After seeing the children become more mature, he made his current plans.
Buffett has previously stated that his three children (Susan Buffett, Howard Buffett, and Peter Buffett) are the executors of his will and the designated trustees of a charitable trust that will receive more than 99% of his wealth.
In addition, Buffett also mentioned that the Bill and Melinda Gates Foundation will no longer receive donations after his death. Warren Buffett resigned as a trustee of the Gates Foundation in June 2021 during the divorce of Bill Gates and Melinda Gates. According to statistics, between 2006 and 2023, Buffett donated $39.3 billion to the Gates Foundation.
Large donations exceed $5.3 billion
According to Berkshire Hathaway's statement on Friday, Buffett will convert 8,674 shares of Berkshire Class A shares into 13.01 million Class B shares for donation to five foundations. Based on the current Berkshire Class B stock price, the donation will exceed $5.3 billion.
Among them, 9.93 million B shares went to the Bill & Melinda Gates Foundation, 990,000 shares went to the Susan Thompson Buffett Foundation, the Sherwood Foundation, Howard K. Brown, and the Howard Gates Foundation. The G. Buffett Foundation and the Novo Foundation each received 695,000 shares.
After the donation, Buffett owns 207963 Berkshire A shares and 2,586 B shares, worth about $130 billion.
As of the close of local time on June 28, the price of Berkshire Hathaway's B shares was $406.8 per share, with a total market capitalization of $876.733 billion.
In a letter published on Berkshire Hathaway's official website, Buffett said, "The five foundations have received about $5.5 billion worth of Berkshire B shares, far more than my entire net worth in 2006." I have no debt, and the remaining A-shares are worth about $127 billion, or about 99.5% of my net worth. ”
At the same time, Buffett said that nothing unusual happened to Berkshire, "The will stipulates that more than 99% of my wealth will be used for charitable purposes." ”
Buffett said Berkshire's diversification and strong profitability make it an ideal asset to support the foundation's long-term growth. He will continue to lead Berkshire with a talented manager, and the company is expected to emerge even stronger in the future through new acquisitions and expansion of existing businesses.
The will will be made public after death
At Berkshire's annual meeting in May, Buffett spoke candidly to shareholders about the future in which he is no longer at the helm, and he sometimes appears serious as he reflects on his advanced age and reflects on his late friend and business partner, Charlie Munger. Greg Abel, Berkshire's vice chairman of non-insurance business, has been named Buffett's successor and has assumed most of the group's responsibilities.
According to public information, Buffett was born in Omaha, Nebraska, USA on August 30, 1930, and turned 94 years old in August this year. Due to his success in investment, Warren Buffett has won the titles of "Warren Buffett" and "Prophet of Omaha", and is currently the chairman and CEO of Berkshire Hathaway.
On the 2024 Forbes list of global billionaires, Warren Buffett ranks sixth with a fortune of $133 billion.
In addition to investment and business, Buffett is also a well-known philanthropist, and he has pledged to donate more than 99% of his wealth to charity after his death. Since 2000, he has initiated the "Warren Buffett's Lunch" auction, and all proceeds have been donated to charity.
Warren Buffett has previously said that his will will be made public after his death.
Buffett said in November that "after my death, the disposition of my assets will be public — no 'imaginative' trust or foreign entity to avoid public scrutiny, but a simple will that can be inspected by the Douglas County Court." ”
In addition, in the shareholder letter, Buffett has said, "I'm 93 years old and I feel good, but I'm fully aware that I'm playing overtime." It also led to speculation that he might retire.
Editor: Xiao Mo
Review: Muyu