Inside Warren Buffett’s newly revealed $140 billion succession plan
Warren Buffett has said the final responsibility for distributing most of his fortune will rest with his three children, who must unanimously agree on how the money is used after his death.
Speaking to CNBC’s Becky Quick, the Berkshire Hathaway chairman said he has built this requirement into his will because he trusts his children to make thoughtful decisions. Buffett said that while he is increasing the pace of his annual donations, the largest share of his wealth will only be distributed after his death.
“I leave it to the kids,” Buffett said when asked whether he supports government-backed programmes or prefers to let his children decide where the money goes.
He added that his will contains a specific condition requiring all three of his children to agree before any major decisions are made. “The bulk of my fortune is likely to be left upon my death,” Buffett told CNBC, noting that he is also “stepping up” the pace of his giving.
According to him, Buffett’s three children, now between the ages of 68 and 72, must unanimously approve how the remaining fortune is distributed. Their charitable foundations currently support causes including early childhood education, food security, and health and economic programmes for women and children. “The money,” Buffett said, “is theirs, and it’s their responsibility to get it done well.”
Buffett says annual giving will increase
During the interview, he noted that Buffett still owns Berkshire Hathaway stock worth around $140 billion based on the previous day’s closing price, while he donated about $6 billion this year. If Buffett wanted to distribute his fortune over the next eight years, annual donations would need to rise significantly. Buffett agreed that the pace of donations would have to increase. “It’ll have to go up,” he told CNBC.
However, he also cautioned against assuming the value of Berkshire Hathaway would remain unchanged. “Which is a terrible assumption, incidentally. I mean, that is not a realistic assumption,” Buffett said.
Buffett says philanthropy cannot solve every problem
Buffett also explained the limits of philanthropy, saying that even enormous wealth cannot solve every social issue.
“If you take eight billion people in the world and feel that everybody should have an equal chance… you’re never going to solve everybody’s problems,” he said.
He compared society’s biggest challenges to the creation of nuclear weapons, saying some problems cannot simply be undone.
“The idea of solving a societal problem… everybody worked on the nuclear weapon regretted the fact that they had to put together something like that… But they never figured out how to put the olive back in the bottle,” Buffett said.
Buffett hopes giving inspires others
Buffett acknowledged that billionaire philanthropy often faces criticism, with some people questioning whether large donations are motivated by tax advantages or public image.
Even so, he believes charitable giving can inspire others to help.
“If you do things that appeal to people’s better instincts, they respond sometimes,” Buffett said.
He said the purpose of philanthropy is to improve life for people who have had fewer opportunities.
“The ultimate goal is to make life better for the people who get short straws,” Buffett said, adding, “there’s a lot more people who get short straws than we’ll ever be able to take care of.”