Howard Buffett explains how his childhood experiences influenced him to become a philanthropist.
In November, before the holiday season, Berkshire Hathaway CEO Warren Buffett issued an unexpected message to shareholders, announcing updates on what will happen to his enormous fortune after his death and offering some advice to others on how to pass on his wealth.
In a letter Posted on the trillion-dollar holding company’s website, Buffett, 94, announced he would donate about $1.1 billion of his Berkshire shares to his family’s four foundations and said his three children would be responsible for distributing gradually the remainder of his holdings after his death. .
Famed investor Warren Buffett joins other influential philanthropists and entrepreneurs featured on Forbes’ list of Top 100 Business Minds during Forbes Media’s Centennial Celebration at Pier 60 in New York City on September 19, 2017 . (Daniel Zuchnik/WireImage/Getty Images)
The tone of the letter suggests that the “Oracle of Omaha” is feeling his mortality.
“Father time always wins,” Buffett wrote. “But it can be fickle (indeed, unfair and even cruel), sometimes ending life at birth or soon after, while at other times waiting a century or so before paying a visit. To date, I have had good luck, but first If it takes too long, you will contact me.”
Buffett noted that his children, now ages 71, 69 and 66, may not live long enough to distribute his estimated $150 billion fortune themselves, so three potential trustees have been named who could also step in. to help fulfill your wishes to distribute everything. his wealth after his death.
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He explained the reasoning behind his policy that all foundation decisions would be made unanimously, said he updates his will every few years and keeps it simple, and also offered some words of wisdom for others to plan their own affairs.
“I have one more suggestion for all parents, whether of modest or staggering wealth,” he wrote. “When your children are mature, have them read your will before signing it.”
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“Make sure each child understands both the logic of your decisions and the responsibilities they will face after your death,” he continued. “If someone has questions or suggestions, listen carefully and adopt those that you think make sense. You don’t want your children to ask ‘Why?’ regarding testamentary decisions when you are no longer in a position to respond.”
Buffett said that over the years, he and his business partner and lifelong friend Charlie Mungerwho died in November 2023, “saw many families torn apart after the will’s posthumous dictates left beneficiaries confused and sometimes angry.”
Warren Buffett, left, with his long-time friend and business partner Charlie Munger, who died last year at the age of 99. (Johannes Eisele/AFP via Getty Images/Getty Images)
He said that in such cases, “jealousy, along with real or imagined slights during childhood, was magnified, particularly when sons were favored over daughters, whether in monetary terms or positions of importance.”
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“Charlie and I also witnessed a few cases where a wealthy father’s will, which was discussed at length before he died, helped the family become closer,” Buffett added. “What could be more satisfying?”
*This article was originally published in November 2024.
