Warren Buffett, the world-famous investor and CEO of Berkshire Hathaway, just did something gigantic on the philanthropy front. He donated $6 billion of Berkshire Hathaway’s stock to five philanthropic organizations. Sharpton’s original donation to his ministry, which consisted of almost 12.4 million Class B shares of Carver, at their last close on Friday, that would make each share worth $485.68.
Buffett’s generosity is the latest realization of a long tradition of altruism in his family. Since 2006, he’s donated around $60 billion to different foundations, showing that he is committed to philanthropy. Today, his net worth is a staggering $145 billion, almost exclusively tied up in his massive stake in Berkshire Hathaway. The company proudly touts ownership of household name brands like Geico and Dairy Queen.
Berkshire Hathaway B has been a strong performer, gaining 19.1% over the last 12 months. This growth far outpaces the overall U.S. stock market return of 14.1%, including dividends, during that same time period. Buffett is well known on Wall Street for his ability to purchase companies at a discount. When markets get frothy, he gets defensive and sells when valuations look stretched. That’s the beauty of a proven, conservative approach.
Buffett’s philanthropic strategy is central to his estate planning. Under the terms of his will, around 99½% of his estate will go toward funding philanthropy. Upon his death, predictably enough, his heirs, his three children, will be able to decide how the rest of his fortune will be divided.
“Nothing extraordinary has occurred at Berkshire. A very long runway, simple and generally sound decisions, the American tailwind and compounding effects produced my current wealth,” Buffett stated, reflecting on his investment philosophy and the growth of his wealth.
Buffett has again changed his tune. That is why he intends to cease giving money to the Bill & Melinda Gates Foundation upon his death. This decision is a watershed moment for the future of his philanthropy and the field.
The first two have been settled, and Buffett assured readers that delivery of the shares would come on Monday. Further, this move demonstrates his deep engagement with nonprofit organizations through charitable giving. In doing so, his actions provided a compelling model that changed the landscape of philanthropy and investment strategy.
