Buffett talks about death and philanthropy in a surprising book for shareholders
Howard Buffett explains how his childhood experiences influenced him to become a philanthropist.
In November, before the holiday season, the CEO of Berkshire Hathaway Warren Buffett released an unexpected message to shareholders, in which he announced updates on what will happen to his great fortune after his death and gave advice to others on how to handle the transfer of their wealth. .
In a letter posted on the website of the $1 trillion holding company, Buffett, 94, announced that he would donate about $1.1 billion of his Berkshire shares to his family’s four foundations, saying his three children would be responsible for gradually distributing all of his assets. following his death.
Legendary investor Warren Buffett is joined by other philanthropists and influential businessmen featured on the Forbes list of 100 Greatest Business Minds during the Forbes Media 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” hears his death.
“Father time always wins,” Buffett wrote. “But he can be fickle – really unfair and even cruel – sometimes he ends life at birth or soon after while, at other times, he waits a hundred or more before visiting. So far, I have been very lucky, but, before long, he will come to me. “
BERKSHIRE HATHAWAY, ORIGINALLY A CLOTHING COMPANY, WAS FOUNDED BY WARREN BUFFETT IN 1965.
Buffett noted that his children, now aged 71, 69 and 66, may not live long enough to distribute his estimated $150 billion fortune, so three potential trustees have been appointed to help carry out his wishes to distribute the rest of the assets. . his wealth after his death.
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He explained the rationale behind his policy that all foundation decisions will be made unanimously, said he reviews his will every few years and keeps it simple, and offered words of wisdom to others as they plan their affairs.
“I have another suggestion for all parents, regardless of whether they are rich or not,” he wrote. “When your children are old enough, tell them to read your will before you sign it.”
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“Make sure each child understands both the logic of your decisions and the responsibilities they will face when you die,” he continued. “If anyone has questions or suggestions, listen carefully and accept those that make sense. You don’t want your kids asking ‘Why?’ about the terms of the agreement where you can no longer answer.”
Buffett said over the years, he and his longtime business partner and friend Charlie Munger, who died in November 2023, “have seen many families split up after the death of a will leaving beneficiaries confused and sometimes angry.”
Warren Buffett, left, with his longtime friend and business partner Charlie Munger, who died last year at age 99. (Johannes Eisele/AFP via Getty Images/Getty Images)
In those cases, he said, “jealousy, and little real or imagined childhood, grew, especially when sons were favored over daughters, either financially or in important positions.”
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“Charlie and I also saw a few cases where a wealthy parent’s will that was fully negotiated before death helped bring the family closer together,” Buffett added. “What would satisfy me the most?”
*This article was originally published in November 2024.
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