Warren Buffett gives away $6 billion in latest philanthropic move

New York: Famed American investor Warren Buffett is donating nearly $6 billion (approx. £4.7 billion) worth of Berkshire Hathaway stock to five charitable foundations, bringing the total value of his donations since 2006 to an estimated $60 billion at the time the shares were transferred.

The 93-year-old billionaire confirmed the transfer of 12.4 million Class B shares of Berkshire Hathaway will take place on Monday. The conglomerate, which owns a diverse portfolio of businesses including Geico and Dairy Queen, has seen its Class B stock rise by 19.1% over the past year, outperforming the broader U.S. stock market’s 14.1% return including dividends.

At Friday’s closing price of $485.68 per share, the donation represents one of Buffett’s largest single philanthropic gifts to date.

Major beneficiaries

The Bill and Melinda Gates Foundation Trust will receive the largest portion–9.4 million shares. The Susan Thompson Buffett Foundation, named after Buffett’s late wife, will be granted 943,384 shares, while the Sherwood Foundation, Howard G. Buffett Foundation, and the NoVo Foundation will each receive 660,366 shares.

Buffett, who currently holds a fortune estimated at $145 billion, made headlines last year when he revealed plans to end his contributions to the Gates Foundation after his death, stating his intention to let his three children direct the remainder of his estate towards philanthropic causes.

Long-term giving strategy

In a statement, Buffett said:

“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.”

He reiterated his long-standing philanthropic vision:

“My will provides that about 99½% of my estate is destined for philanthropic usage.”

Buffett is renowned for his disciplined investment style, often opting for long-term value and caution during market highs. This conservative yet opportunistic approach has helped him build one of the largest fortunes in history, largely concentrated in Berkshire Hathaway stock.

Disclaimer: Kindly avoid objectionable, derogatory, unlawful and lewd comments, while responding to reports. Such comments are punishable under cyber laws. Please keep away from personal attacks. The opinions expressed here are the personal opinions of readers and not that of Mathrubhumi.