US Markets
Wednesday, November 22nd, 2023 3:06 pm EDT
Key Points
- Philanthropic Contributions: Warren Buffett, the renowned 93-year-old investor and chairman of Berkshire Hathaway, has donated over $870 million in Berkshire Hathaway stock to four family foundations. This includes substantial contributions to the Susan Thompson Buffett Foundation and three foundations run by his children: the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation. These donations supplement lifetime pledges made by Buffett in 2006 and align with his commitment to give away his fortune, a tradition he has maintained through annual contributions since 2006.
- Berkshire Hathaway’s Diverse Portfolio and Financial Performance: Berkshire Hathaway, under Buffett’s leadership since 1965, owns a diverse range of well-established businesses, such as Geico insurance, BNSF Railway, and a significant stake in Apple (approximately 6%). The conglomerate’s shares have experienced a nearly 17% gain in the current year, reaching an all-time high in September. Despite being 93 years old, Buffett assures investors in a letter that Berkshire Hathaway is “built to last,” emphasizing the enduring strength of the conglomerate he has cultivated over six decades.
- Succession Planning and Family Involvement: Buffett’s letter to Berkshire shareholders not only reassures them about the longevity of the conglomerate but also addresses important aspects of succession planning. Greg Abel, vice chairman for non-insurance operations at Berkshire, has been named Buffett’s successor. Buffett has expressed confidence in Abel, noting that he has taken on most of the responsibilities. Buffett’s three children serve as executors of his will and trustees of the charitable trust set to receive the majority of his wealth. Buffett emphasizes a shared belief with his children that dynastic wealth, while legal and common, is not desirable. Furthermore, he reflects on the observation that wealth does not necessarily equate to wisdom or morality, highlighting a perspective gained through numerous opportunities.
Warren Buffett, the 93-year-old legendary investor and chairman of Berkshire Hathaway, donated over $870 million in Berkshire Hathaway stock to four family foundations before Thanksgiving. The donations included 1.5 million Class B shares of his conglomerate to the Susan Thompson Buffett Foundation, named after his first wife, and 300,000 Class B shares to each of the foundations run by his three children: the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation.
This philanthropic gesture serves to supplement lifetime pledges made by Buffett in 2006 and continues until his passing. Despite his age, Buffett reassured investors in a statement that he feels good but acknowledges he is playing in “extra innings.” Notably, similar donations were made on Thanksgiving eve the previous year, as part of Buffett’s longstanding commitment to give away the fortune he built at Berkshire Hathaway. These annual donations have been consistently directed to the same four charities since 2006.
Berkshire Hathaway, under Buffett’s leadership since 1965, owns a diverse portfolio of well-established businesses, including Geico insurance, BNSF Railway, and approximately 6% of Apple. The conglomerate’s shares have experienced nearly a 17% gain this year, reaching an all-time high in September.
In a letter to Berkshire shareholders, Buffett affirmed the enduring strength of the conglomerate, stating that it is “built to last.” He expressed confidence in the distinctive characteristics and behavior of Berkshire, even in the absence of his oversight. Buffett emphasized that while decay can affect large institutions, Berkshire’s advantage lies in its resilience and enduring qualities.
As part of Berkshire’s long-term planning, Greg Abel, the vice chairman for non-insurance operations, has been named Buffett’s successor. Buffett praised Abel, noting that he has taken on most of the responsibilities. Buffett’s three children serve as the executors of his will and trustees of the charitable trust set to receive the majority of his wealth. Buffett highlighted their shared belief that dynastic wealth, though legal and common, is not desirable. He emphasized that being rich does not necessarily make one wise or evil, a perspective gained through numerous opportunities for observation.
For the full original article on CNBC, please click here: https://www.cnbc.com/2023/11/21/warren-buffett-makes-big-donation-before-thanksgiving-says-berkshire-is-built-to-last.html
