5th Richest Man Gives 99% of His Wealth As Donation to Charity

While we have different opinions on the wealthy and the rich, this specific man is trying to unite us as one. And he is trying to do that with a 99% wealth donation to charity.

One of the world’s wealthiest people is deciding to give away a staggering 99% of his fortune to charity. While this sounds all nice and dandy, there are still some questions we need to ask. What motivates a person to give away such a big portion of their riches? And even more importantly, what impact will this donation have on society at large?

Millionaire Is Giving 99% of His Wealth As Donation to Charity

Warren Buffett, renowned for his investment prowess and ranked as the fifth richest person globally, has detailed his plans for Berkshire Hathaway. This includes his wealth in the event of his death.

In a letter published on the company’s website, Buffett disclosed that he has allocated millions of shares in Berkshire Hathaway to four charitable trusts linked to his family, according to Fortune Magazine.

Warren Buffett, aged 93, converted 1,600 Class A shares into 2,400,000 Class B shares, as reported in a regulatory filing. He divided these shares as follows: the Howard G. Buffett Foundation, the Sherwood Foundation, and the NoVo Foundation each received 300,000 shares. Additionally, the Susan Thompson Buffett Foundation received 1,500,000 shares.

Letter Discloses His Beliefs on Wealth

In a letter dated November 21 to shareholders, Warren Buffett mentioned that the recent donations reiterated those made the previous Thanksgiving.

These contributions are in addition to commitments he made in 2006. They will continue until his death. He acknowledged his age of 93 and the perspective that he is “playing in extra innings.“

He mentioned: “My children, along with their father, have a common belief that dynastic wealth, though both legal and common in much of the world including the United States, is not desirable. Moreover, we have had many opportunities to observe that being rich does not make you either wise or evil. We also agree that capitalism – whatever its weaknesses, including the vast disparities in wealth and political influence that it delivers somewhat capriciously to its citizens – has worked wonders and continues to work wonders.”

His Will Says to Focus on Charity

Warren Buffett confirmed that his three children, aged between 65 and 70, are currently the executors of his will. He stated that “99%-plus” of his wealth would be directed to a charitable trust per the terms of the will.

Reflecting on their readiness, Buffett noted that while his children were not fully prepared for this responsibility in 2006, they are now prepared for the significant role.

He outlined in his letter that his three children must collectively make decisions about managing his wealth. He emphasized the need for designated successors due to the unpredictability of mortality and highlighted the importance of adaptable trustees over rigid regulations set by past individuals.

Buffett affirmed his belief in the enduring significance of private philanthropy in America, despite evolving laws and regulations.

What Will Happen to Berkshire?

Berkshire Hathaway, now valued at over $780 billion with over 380,000 employees, anticipates thriving even after Warren Buffett’s tenure, despite acknowledging that mistakes are unavoidable.

Warren Buffett expressed confidence in Berkshire Hathaway’s ability to handle inevitable human errors in judgment and behavior, common in large organizations. He highlighted the company’s strong leadership, including the CEO poised to succeed him and a capable board of directors, emphasizing their crucial roles in maintaining Berkshire’s integrity and correcting any missteps.

Warren Buffett remarked that while his influence will support Berkshire Hathaway in the short term, the company will soon establish its own reputation based on its actions. He emphasized that decay is not inevitable and highlighted Berkshire’s resilience, built to endure over time.

Would you ever give 99% of your wealth as a donation to charity if you had the means to?

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