Warren Buffett
David A. Grogan | David A. Grogan CNBC
Warren Buffett, who has a personal fortune of $150 billion, has strongly opposed creating “dynastic” wealth, appointed three independent trustees to oversee his children’s philanthropy and donated another $1.1 billion to four family foundations of Berkshire Hathaway stock.
Rather than leaving a huge inheritance to his three children, the 94-year-old legendary investor has long pledged to give away 99% of the wealth he accumulated in Berkshire Hathaway, Berkshire Hathaway Hathaway is the Omaha-based conglomerate he has run since 1965.
Buffett believes that family wealth dynasties can have negative consequences, such as eroding personal growth and complicating relationships. At the same time, they create social uncertainty because it is unpredictable how future generations will choose to distribute this wealth.
“I have never wanted to create a dynasty or pursue any plans beyond my children,” Buffett wrote in a lengthy letter on Monday. “I know these three men well and have complete trust in them. Descendants are another time. matter. Who could have foreseen the priorities, wisdom, and loyalty of future generations to handle the distribution of extraordinary wealth in what may be a very different philanthropic environment?”
Appointment of successor trustee
The “Oracle of Omaha”, who owns about 37.6% of Berkshire Hathaway’s Class A stock, said the assets he has amassed may take longer to deploy than his children will be alive. He appointed three trustees of a charitable trust with the potential to distribute his wealth to his children who would inherit. Buffett’s three children are now 71, 69 and 66 years old.
“Three potential successor trustees have been named. Each is well known to my children and meaningful to all of us. They are also somewhat younger than my children,” Buffett wrote. “But those successors are on the waiting list. I want Susie, Howie and Peter to pay all my assets themselves.”
The identity of the trustee was not disclosed.
Buffett has made annual donations to four family foundations since 2006.
“Between 2006 and 2024, I had the opportunity to observe each of my children in action, and they learned a lot about large-scale philanthropy and human behavior,” he said. “They enjoy financial comfort, but they are not focused on wealth. They learned these values from their mothers and would be very proud of them. I am the same way.”
Buffett’s Berkshire Hathaway, which has a market value of more than $1 trillion this year, owns many mature companies, from crown jewel Geico Insurance to BNSF Railroad to consumer brands such as Dairy Queen and See’s Candies.
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