Warren Buffett has unveiled a detailed plan to distribute his wealth after his death while donating $1.1 billion worth of Berkshire Hathway shares.
The Berkshire Hathway CEO in a letter to shareholders recalled that once he hoped his late first wife would outlive him. His earlier plan from 2006 was to let his three children distribute his remaining $147.4 billion worth of assets in the decade following his death.
Who will inherit Warren Buffetts' fortune?
If Warren Buffett had not contributed 56.6% of his shares in Berkshire Hathaway to charities since 2006, his Berkshire stake today would be valued at about $340 billion, approximating Elon Musk's wealth of $348 billion and who is the richest person in the world.
— David Kass (@DrDavidKass) November 25, 2024
However, now he has chosen successors for his children too as they could die before they could transfer it. Susan Buffett, Howard Buffett and Peter Buffett are now aged 71, 69 and 66. He did not name the successors but said his children would agree on the picks.
Buffett said 1,600 Class A shares of Berkshire Hathaway would be converted into 24 lakh Class B shares and distributed to four family foundations.
Of these, 15 lakh shares would go to Susan Thomposn Buffett Foundation, 3 lakh to Sherwood Foundation, 3 lakh to Howard G. Buffett Foundation and 3 lakh to NoVo Foundation. With this Buffett's Berkshire Class A shares have diminished to 206,363.
The billionaire investor said he is not interested in creating dynastic wealth but has given millions to Howard, Peter and Susie over the years. After Susan Buffett died in 2004, Buffett family has distributed $3 billion estate.
Buffett began giving annual gifts to the foundations run by his children, his wife and the Bill & Melinda Gates Foundation. Since 2006, he has donated 57 per cent of his Berkshire holdings.
What is Warren Buffett's net worth?
Buffett's net worth is $149.4 billion as of November 27, 2024. He is the sixth richest person in the world after Tesla CEO Elon Musk ($326.2 billion), Oracle founder Larry Ellison ($232.6 billion), Amazon chairman Jeff Bezos (223.3 billion), Meta CEO Mark Zuckerberg ($198.4 billion) and LVMH chairman Bernard Arnault & family ($160 billion).
If Buffett had not donated the amount, his wealth would be worth $364 billion, which is higher than the $326.2 billion fortune of Elon Musk.
The 94-year-old said "hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing."
He pointed out that as a family, he and his children have had everything they needed or wanted but "we have not sought enjoyment from the fact that others craved what we had."
In his letter, Buffett advised parents to let their families read their will during their own lifetime just like what he did. He said this will give the parent a chance to explain their decisions and answer their children's questions.
Buffett pointed out that several families have been driven apart after the will leaves "beneficiaries confused and sometimes angry".
