$6 billion donation: Warren Buffett makes his biggest annual charitable gift

Warren Buffett has made his largest annual donation to date, giving away $6 billion worth of Berkshire Hathaway stock to a mix of philanthropic organizations, including the Bill & Melinda Gates Foundation and four foundations tied to his family.

The donation, disclosed on Friday, was executed through the transfer of approximately 12.36 million Class B shares of Berkshire Hathaway, continuing a long-standing tradition that began nearly two decades ago.

The bulk of the shares, over 9.4 million, were directed to the Gates Foundation. Additional allocations included nearly 943,000 shares to the Susan Thompson Buffett Foundation, and 660,000 shares each to three organizations run by his children: the Howard G. Buffett Foundation, the Sherwood Foundation, and the NoVo Foundation. This latest giving round raises Buffett’s total charitable contributions over the years to more than $60 billion.

Even after this sizable transfer, Buffett retains about 13.8% ownership in Berkshire Hathaway, according to publicly reported data. Prior to the donation, his net worth stood at approximately $152 billion, placing him fifth on Forbes' global billionaire rankings.

With this year’s donation exceeding the $5.3 billion he gave in June 2023, Buffett is expected to fall slightly in the rankings.

In a public note accompanying the donation, Buffett reiterated that he has no intention of selling any of his Berkshire shares.

The 94-year-old investor and philanthropist began systematically giving away his wealth in 2006 and made changes to his estate plan last year, allocating 99.5% of his remaining wealth to a charitable trust to be overseen by his children after his passing.

His three children—Susie, Howard, and Peter Buffett—will jointly manage the distribution of the trust's assets, with decisions to be made unanimously over the course of a decade. At present, Susie Buffett is 71, Howard Buffett is 70, and Peter Buffett is 67.

The foundations receiving Buffett’s donations each focus on distinct social causes. The Susan Thompson Buffett Foundation, named after his late first wife, supports reproductive health initiatives. The Howard G. Buffett Foundation works on global hunger, conflict mitigation, and anti-trafficking programs.

The Sherwood Foundation emphasizes early childhood education and nonprofit work in Nebraska, while the NoVo Foundation focuses on uplifting marginalized girls, women, and indigenous communities.

Buffett has previously stated that donations to the Gates Foundation will cease upon his death. Meanwhile, Berkshire Hathaway—valued at $1.05 trillion—continues to operate a vast portfolio of companies and public equity holdings, including stakes in Apple, American Express, Geico, and BNSF Railway.

Also read: Rs 1 lakh crore selloff tsunami threatens Nifty rally as promoters, strategic investors exit

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)