NEW YORK (AP) – Renowned investor Warren Buffett has made a significant contribution by donating $6 billion worth of his company's stock to five different foundations. This recent donation brings the total amount he has given to these organizations since 2006 to approximately $60 billion, based on the value at the time of the gifts.
On Friday, Buffett announced that the shares of Berkshire Hathaway would be delivered to the foundations on the following Monday. The contribution consists of nearly 12.4 million Class B shares of Berkshire Hathaway, a company known for its ownership of businesses such as Geico and Dairy Queen. The Class B shares are more affordable than the company's Class A shares, with each Class B share valued at $485.68 at the most recent closing price on Friday.
The largest portion of this donation, totaling 9.4 million shares, is directed towards the Bill & Melinda Gates Foundation Trust. Other recipients include the Susan Thompson Buffett Foundation, which will receive 943,384 shares, and the Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation, each receiving 660,366 shares.
Buffett stirred controversy last year when he declared his intention to cease donations to the Bill & Melinda Gates Foundation after his death. He plans to leave the decision on how to distribute the remainder of his wealth to his three children.
Berkshire Hathaway's Class B stock has experienced a 19.1% increase over the past year, outperforming the broader U.S. stock market’s return of 14.1%, including dividends. Buffett is well-known on Wall Street for his strategy of purchasing companies at attractive prices and maintaining a conservative approach when prices seem inflated. This investment philosophy has been instrumental in building his impressive fortune, which is estimated to be around $145 billion, predominantly in Berkshire Hathaway stock.
Buffett shared insights into his wealth, stating, “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 further noted that his will stipulates approximately 99.5% of his estate is intended for philanthropic purposes.
In summary, Warren Buffett's philanthropic efforts signify a long-standing commitment to charity and the power of strategic investing. His recent donation serves as a testament to his principles and the impact of his investments on various foundations.
