Buffett donates $6B in Berkshire stock to 5 foundations: Lifetime giving tops $60B
Berkshire Hathaway CEO Warren Buffett announced Friday that he is donating another $6 billion of the company’s stock to the Gates Foundation and four family charities.
It marks his biggest annual donation since he began giving away his fortune in 2006 when he pledged to give away the bulk of his fortune to charity, primarily through five foundations.
Buffet, 94, is donating 9.43 million shares to the Gates Foundation; 943,384 shares to the Susan Thompson Buffett Foundation; and 660,366 shares to each of three charities led respectively by his children Howard, Susie, and Peter: the Howard G. Buffett Foundation, Sherwood Foundation and NoVo Foundation. The donations will be delivered on Monday.
BUFFETT DONATES OVER $5B IN BERKSHIRE STOCK TO 5 FOUNDATIONS: LIFETIME GIVING TOPS $60B
The Oracle of Omaha converted 8,239 A shares into 12,358,500 B shares in order to donate 12,358,321 shares of Berkshire Hathaway "B" stock to the five foundations.
A shares are original stock issued by the company that are high in value and high in voting power, while B shares were created in 1996 to allow smaller investors to own Berkshire.
Even after giving away tens of billions of dollars, Buffett retains tight control of Berkshire because he keeps his A shares, which carry almost all the voting power. B shares are far easier to transfer, value and liquidate for charities than A shares.
Buffett still owns 13.8% of Berkshire's stock, based on reported shares outstanding. His $152 billion net worth prior to Friday's donations made him the world's fifth-richest person, according to Forbes magazine.
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When he first started making donations in 2006, he owned 474,998 Berkshire A shares worth about $43 billion and those shares represented more than 98% of his net worth.
During the following 19 years, he has not bought or sold any A or B shares, nor does he intend to do so.
"The five foundations have received Berkshire B shares that had a value when received of about $60 billion, substantially more than my entire net worth in 2006," Buffet said. "I have no debts and my remaining A shares are worth about $145 billion, well over 99% of my net worth."
"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. My will provides that about 99½% of my estate is destined for philanthropic usage."
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Buffett plans to step down by the end of this year as CEO of Berkshire Hathaway, and billionaire investor Greg Abel, who is vice chairman, will be his replacement.
"I think the time has arrived where Greg should become the chief executive of the company at year end," Buffett said at Berkshire's annual shareholders meeting in Omaha, Nebraska. Abel, 62, has been vice chair since 2018.
Reuters contributed to this report.
