Topline
Billionaire investor Warren Buffett dished out $6 billion in Berkshire Hathaway shares to five charities Saturday, marking his biggest annual donation in nearly 20 years and parting with a portion of his $152 billion estimated net worth.
Berkshire Hathaway Chairman and CEO Warren Buffett smiles during an interview in Omaha, Neb., May 7, … More
Key Facts
Around 12.36 million Class B shares of Berkshire were donated by Buffet, marking his largest ever yearly donation since he started giving away portions of his fortune in 2006.
A majority of the shares were donated to the Bill & Melinda Gates Foundation Trust, with the remaining 2.92 million shares going to the Sherwood Foundation, the Howard G. Buffett Foundation, NoVo Foundation and the Susan Thompson Buffett Foundation.
The donations will be delivered Monday, bringing Buffett’s ownership of Berkshire to 198,117 A shares and 1,144 B shares.
Buffett converts Class A shares into Class B when he makes the donations.
A single Berkshire Class A share is worth nearly $731,000, while a Class B share is worth $485.68.
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Crucial Quote
“The mathematics of the lifetime commitments to the five foundations are interesting,” Buffett said in a statement. “The schedule for annual grants was made on June 26, 2006, and has since been supplemented by significant grants to four of the five recipients. When originally made, I owned 474,998 Berkshire A shares worth about $43 billion and those shares represented more than 98% of my net worth.”
Surprising Fact
About 99.5% of Buffett’s estate is “destined for philanthropic usage,” according to Buffett, who noted he has not bought or sold any Class A or Class B shares in the last 19 years.
Key Background
Buffett, 94, announced last month he will step down as Berkshire Hathaway’s CEO by the end of 2025. The investment mogul has tapped Berkshire Hathaway Energy CEO Greg Abel as his replacement. Buffet is the fifth-wealthiest person in the world behind Jeff Bezos, Mark Zuckerberg, Larry Ellison and Elon Musk. Buffett made a pledge in 2010 to donate his fortune in his lifetime or by the time of his death, doing so alongside Bill Gates and Melinda French Gates. Bill & Melinda Gates Foundation Trust has received billions from Buffett and focuses on poverty, global development, education and more.
Further Reading
Warren Buffett Says He Will Step Down As Berkshire Hathaway CEO (Forbes)