Key Points
There’s a lot to admire about Warren Buffett. For example, he has been an amazing investor, growing the value of his company Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) by more than 6,000,000% (nearly 20% annually) over 60 years. In contrast, the S&P 500 index of 500 of America’s biggest companies gained about 46,000% (10.5% annually, on average) over the same period.
He’s also one of the greatest philanthropists. While some billionaires keep doing whatever they can to get richer and richer, Buffett has been giving away billions over many years, moving himself down on lists of the richest people.
Something has changed, though. Whereas Buffett has been a longtime friend of Bill Gates and has donated many billions to the Gates Foundation, he stopped doing so this year.
Buffett’s track record
Buffett has long planned to give away most of his vast fortune — the questions had been when — and how? In 2010, he, Melinda French Gates, and Bill Gates launched “The Giving Pledge,” encouraging the super-rich to pledge to donate much of their wealth to charity. There are 250-plus donors enrolled, from 30 countries.
Meanwhile, starting in 2006, Buffett has given several billion dollars annually to the Gates Foundation, reasoning that there was no need for him to set up his own foundation when an effective one already existed that he could support. Since then, he has donated more than $47 billion.
Things are different now
That has changed, though, because this year, Buffett — who will turn 96 in August — is not making his usual donation to the Gates Foundation. And the reason is Gates’ connection to Jeffrey Epstein. Interviewed by CNBC’s Becky Quick in March, Buffett said that he hadn’t spoken with Gates “at all since the whole thing was unveiled,” and that he doesn’t plan to talk much with Gates “until it gets cleared up.”
Gates has not been accused of any crimes or sexual misconduct. And he denies any wrongdoing while admitting, “I was foolish.” He also said that “I was one of many people who regret ever knowing him.”
Other annual Buffett gifts continue, though, to foundations run by his three children and a foundation in the name of his late wife, Susie Buffett. Specifically, these are the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation. The organizations are receiving a total of 12 million Class B shares of Berkshire Hathaway, worth close to $6 billion.
Buffett has also recently announced that:
My goal is to dispose of all of my Berkshire shares within about eight years. As I explained last year, my children are unfortunately growing older. I have every hope that the three of them are able to carry out the disposal of my shares by December 31, 2034.
Buffett puts a lot of weight on a good reputation and has said, “It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.”
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Selena Maranjian has positions in Berkshire Hathaway. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
