On Friday morning local time, American media published an interview article with renowned investor Warren Buffett, with the theme of 93 year old "stock god" talking about his own affairs.
Investors who follow Buffett should have a general understanding that as they age, the frequency of his public statements can be described as "rare". Throughout the year, except for persistently appearing to answer shareholder questions at the May shareholder meeting, the rest of the time is almost in a state of silence.
Revise a will
As is well known, Buffett has publicly promised to "donate 99% of his personal wealth to charitable organizations during his lifetime or death," and is constantly fulfilling this promise. Since 2006, Buffett has donated half of his Berkshire equity, mainly to the Gates Foundation and four foundations related to the Buffett family,
In Friday's report, Buffett revealed the latest inheritance arrangements. The stock god stated that he has made multiple revisions to his will and has formulated the current plan after seeing the children become more mature.
Buffett revealed that in the latest arrangement, all remaining wealth after his death will be donated to a newly established charitable trust fund, which will be jointly supervised and managed by his daughter Susan Buffett, two sons Howard Buffett, and Peter Buffett. Three people must unanimously decide how to use the money in this foundation.
He also stated that he did not provide specific instructions for the three children, but shared his views on charity - the money should be used to help those who are not as lucky as us. He said, "There are 8 billion people in the world, and my children and I are among the luckiest 1%. There are many ways to help people."
Will stop donating money to the Gates Foundation after death
According to the arrangement that began in 2006, Buffett originally planned to gradually donate his wealth to five foundations, donating 5% of the remaining equity each year.
Most of them will go to the Bill and Melinda Gates Foundation founded by his old friend Gates and ex-wife Melinda, while the remaining four foundations are related to his family: the Susan Thompson Buffett Foundation named after his late wife, the Susan A. Buffett Foundation managed by his daughter, the Howard G. Buffett Foundation managed by his eldest son Howard, and the Novo Foundation managed by his youngest son Peter and his wife.
Buffett also stated that donations to these five foundations will only continue while he is alive.
It is worth mentioning that in May 2021, Bill Gates and Melinda officially announced their divorce. In order to save face for their old friends, the two postponed the announcement until early May after the Berkshire shareholders' meeting. Just two months later, Buffett announced his resignation as trustee of the Gates Foundation. It is reported that Melinda also announced her resignation from the foundation earlier this year and cut ties earlier this month.
In his latest interview, Buffett made it clear that "I won't have the money to go to the Gates Foundation after I pass away.".
According to the Gates Foundation, from 2006 to 2023, Buffett donated $39.3 billion to the foundation, and this number is also increasing.
Berkshire announced on Friday that Buffett will convert his 8674 A-shares into B-shares for a new round of donations. One Berkshire Class A share can be converted into 1500 Class B shares, and Class A shares also have greater voting power. In this round of donations, the Gates Foundation will receive $4 billion worth of B-shares, the Susan Thompson Buffett Foundation will receive $400 million worth of shares, and the three children's foundations will each receive $280 million worth of shares.
Three children speak together
It should be noted that considering Buffett's 93 year old age, his three children are now between the ages of 6 and 70.
Sister Susan is already 71 years old this year. In addition to overseeing the foundation under her name, she also serves as the chairman of the Susan Thompson Buffett Foundation, which mainly sponsors reproductive rights and university scholarships.
Big brother Howard Buffett is 69 years old and works in agriculture. So his Howard G. Buffett Foundation is committed to food security, while also balancing goals such as easing conflicts and combating human trafficking. Howard and Susan are both members of Berkshire's board of directors.
My younger brother Peter Buffett is 66 years old and is a musician. He and his wife Jennifer Buffett jointly lead the Novo Foundation, funding projects including collaborations with indigenous communities.
Buffett emphasized that he is very satisfied with the values of the three children and has 100% confidence in how they handle things.
There are also three Buffett heirs facing the interview.
Susan said, "We haven't discussed what we're going to do yet because it seems a bit premature. I can imagine it could be a continuation of what we've been doing."
Howard emphasized that the three of them may meet to face a considerable workload. Peter responded that their final decision may be influenced by various factors such as stock prices, tax laws, social and political developments.