warren-buffett-to-donate-record-6-bn-to-five-foundations

In his latest philanthropic donation, American investor Warren Buffett has decided to give away USD 6 billion worth of his conglomerate, Berkshire Hathaway’s stock to five foundations, including the Bill and Melinda Gates Foundation Trust.

The shares of Berkshire Hathaway will be delivered on Monday, bringing the total given by Buffett to them since 2006 to roughly $60 billion, based on their value when received.

While the Bill and Melinda Gates Foundation Trust will receive the largest tranche of 9.4 million shares, the Susan Thompson Buffett Foundation will receive 943,384 shares, and the Sherwood Foundation, Howard G Buffett Foundation and NoVo Foundation will each receive 660,366 shares.

A year ago, Buffett had said he planned to cut off donations to the Bill and Melinda Gates Foundation after his death and let his three children decide how to distribute the rest of his fortune.

 

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Buffett, who currently serves as the chairman and CEO of Berkshire Hathaway, has a net worth of $152 billion, according to Forbes. His conglomerate owns Geico, Dairy Queen, and a range of other businesses. 

Buffett is donating nearly 12.4 million of the Class B shares of his company’s stock, which have a lower and easier-to-digest price tag than the original Class A shares. Each of the B shares was worth USD 485.68 at their most recent close on Friday.

Meanwhile, Berkshire Hathaway’s Class B stock has climbed 19.1 per cent over the last 12 months, topping the broad US stock market's return of 14.1 per cent, including dividends.

Buffett is famous on the Wall Street for his bargain-hunting approach that comprises buying companies at good prices but being more conservative when prices look too high. 

“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,” Buffett said in a statement.

“My will provides that about 99½% of my estate is destined for philanthropic usage.”