New Delhi: Billionaire investor Warren Buffett has made headlines once again by donating over $1.1 billion in Berkshire Hathaway stock to various family charities and foundations on November 25. This act is part of his longstanding Thanksgiving tradition of giving, which he has maintained over the years. Alongside this generous donation, Buffett also shared insights regarding the succession plan for his substantial fortune, estimated at $147.4 billion.
Buffett has previously indicated that his three children would inherit this wealth over a decade following his passing. However, he recently revealed that he has identified an undisclosed successor to manage the inheritance in the event that any of his children pass away before receiving their full share. While the identity of this successor remains confidential, Buffett assured shareholders that his children are aware of who it is and believe they would be suitable choices.
In a candid letter to shareholders, Buffett reflected on the unpredictability of life and the diminishing life expectancy of his children, who are now aged 71, 69, and 66. He emphasized that he does not wish to create dynastic wealth but acknowledged that he has provided substantial financial support to his children over the years. He articulated a philosophy on inheritance, stating that wealthy parents should leave enough for their children to pursue their dreams but not so much that it leads to complacency.
Buffett’s immense wealth is attributed largely to the power of compounding interest and the successful growth of Berkshire Hathaway through strategic investments, such as significant stakes in Apple Inc. He continues to live modestly in Omaha, Nebraska, where he has resided for decades, and drives practical vehicles rather than indulging in luxury.
Since the passing of his first wife, Susan Buffett, in 2004, the family has distributed around $3 billion from their estate. In 2006, Buffett pledged to make annual donations to foundations managed by his children as well as to the Bill & Melinda Gates Foundation. To date, he has contributed approximately $55 billion in stock to the Gates Foundation alone.
Buffett’s tradition of gifting shares extends beyond Thanksgiving; he typically makes substantial donations each summer as well. He also advocates for transparency regarding wills and estate planning, encouraging parents to discuss their plans with their families while they are still alive. This approach aims to prevent misunderstandings or conflicts that can arise after a loved one’s death.
