Warren Buffett Transforms $6 Billion into Philanthropic Power with Generous Stock Donation

Berkshire Hathaway has announced a significant donation by Warren Buffett, who converted 8,239 shares of Class A stock into 12,358,500 shares of Class B stock. This conversion facilitates Buffett's generous donation of 12,358,321 shares of Class B stock to five nonprofit foundations.

The donation distribution includes 9,433,839 shares to the Bill & Melinda Gates Foundation Trust, 943,384 shares to the Susan Thompson Buffett Foundation, and 660,366 shares each to the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation. These shares are expected to be delivered by June 30.

Currently, Warren Buffett holds 198,117 shares of Class A stock and 1,144 shares of Class B stock in Berkshire Hathaway. Based on the closing price of $485.6 for Berkshire's Class B shares on Friday, the total value of the donation amounts to an impressive $6 billion.

Since 2006, Buffett has committed to making annual donations to these five foundations, with the value of his donations rising over time. Following this year's donation, these foundations have collectively received over $60 billion from Buffett's charitable contributions over the last 20 years.

In reflecting on these donations, Buffett noted that his lifetime commitment to charity is mathematically fascinating. He initiated his annual gifting strategy in June 2006, and since then, he has increased his donations significantly to four of these foundations. At the time of the first commitment, he owned 474,998 shares of Berkshire's Class A stock valued at approximately $43 billion, comprising over 98% of his net worth.

Buffett emphasized that he has not engaged in any trading of his Berkshire shares in the past 19 years, nor does he plan to. The foundations receiving his donations have acquired Class B shares valued at approximately $60 billion upon receipt, far exceeding his total net worth back in 2006.

Buffett remains debt-free, with his remaining Class A shares valued at around $145 billion, surpassing his net worth by 99%. Influencing his financial growth is a combination of an extended time horizon, straightforward decisions, U.S. economic momentum, and the power of compound interest. His will states that roughly 99.5% of his estate will go toward charitable causes.

The lifetime commitment is stipulated to conclude upon his passing or under certain conditions outlined in a 2006 letter, which currently remain satisfied. In a statement from November 21, 2023, Buffett detailed the execution procedures of his will, which he does not anticipate changing before his death, and plans to have his existing will disclosed posthumously.