itstargetnews
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 issued an unexpected message to shareholders, where he announced updates on what will happen to his vast fortune after his death and offered some advice for others on how to pass on their wealth.
In a letter posted on the website of the trillion-dollar holding company, Buffett, 94, announced he would give about $1.1 billion of his Berkshire stock to his family’s four foundations and said his three children they would be responsible for gradually distributing the rest of his holdings after his death. .
Famed investor Warren Buffett joins other influential philanthropists and entrepreneurs named to 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” 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 it waits a century or so before paying a visit. So far, I’ve been very lucky, but before long, it’s going to catch up to me.”
Buffett noted that his sons, now 71, 69 and 66, may not live long enough to distribute their estimated $150 billion fortune themselves, so three potential trustees have been appointed who could also step in to fulfill his wishes to distribute all his wealth after he dies.
‘Making Money’ host Charles Payne reflects on Warren Buffett’s annual shareholder memo in which he praised Charlie Munger.
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 as they plan their their own affairs.
“I have one more suggestion for all parents, whether of modest or staggering wealth,” he wrote. “When your children are old enough, have them read your will before they sign it.”
MELINDA FRENCH GATES SAYS WARREN BUFFETT’S LATEST ‘didn’t surprise me’
“Make sure each child understands both the logic of your decisions and the responsibilities that will come with your death,” he continued. “If anyone has questions or suggestions, listen carefully and adopt those that make sense. You don’t want your kids asking ‘Why?’ regarding testamentary decisions when you can no longer answer”.
Buffett said that over the years, he and a longtime business partner and friend Charlie Mungerwho died in November 2023, “saw many families torn apart after posthumous wills left beneficiaries confused and sometimes angry.”
Warren Buffett, left, with friend and business partner Charlie Munger, who died last year at age 99. (Johannes Eisele/AFP via Getty Images/Getty Images)
He said that in such cases, “jealousies, together with real or imagined slights during childhood, increased, especially when sons were favored over daughters, either monetarily or by positions of importance” .
GET THE FOX BUSINESS ANYWHERE CLICK HERE
“Charlie and I also witnessed a few cases where a wealthy father’s will that was fully discussed before death helped bring the family closer together,” Buffett added. “What could be more satisfying?”
*This article was originally published in November 2024.
