$60 Billion Total Warren Buffett donation since 2006 as Berkshire Hathaway Shares Continue Strong Performance
Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, announced Friday that he is donating $6 billion in company stock to five charitable organizations, bringing his total philanthropic contributions since 2006 to approximately $60 billion based on current market valuations.
Major Gift Distribution
The donation, consisting of nearly 12.4 million Class B shares of Berkshire Hathaway, will be distributed on Monday to the following organizations:
- Bill & Melinda Gates Foundation Trust: 9.4 million shares (largest recipient)
- Susan Thompson Buffett Foundation: 943,000+ shares
- Sherwood Foundation: ~660,000 shares
- Howard G. Buffett Foundation: ~660,000 shares
- NoVo Foundation: ~660,000 shares
Each Class B share was valued at $485.68 at Friday’s market close, making this one of the largest single charitable donations in recent history.
Strong Market Performance Fuels Giving
Berkshire Hathaway’s Class B shares have surged 19.1% over the past year, significantly outperforming the broader U.S. stock market’s 14.1% growth (including dividends). This strong performance has enhanced the value of Buffett’s charitable contributions.
Berkshire Hathaway owns well-known brands including Geico and Dairy Queen, along with numerous other businesses across various sectors. The company’s consistent growth has been driven by Buffett’s investment philosophy of purchasing businesses at fair prices and exercising caution during periods of market overvaluation.
Future Philanthropic Plans
In a surprising announcement approximately one year ago, Buffett revealed plans to cease donations to the Bill & Melinda Gates Foundation after his death. Instead, he intends for his three children to determine how to allocate the remainder of his wealth for charitable purposes.
Buffett has committed nearly 99.5% of his fortune to charitable causes, demonstrating an unprecedented level of philanthropic dedication among billionaire investors.
Investment Success and Philosophy
Warren Buffett’s personal fortune in Berkshire Hathaway stock is valued at approximately $145 billion, making him one of the world’s wealthiest individuals. His investment success stems from what he describes as a straightforward approach.
“Nothing out of the ordinary has happened at his company, Berkshire Hathaway,” Buffett explained. He credits his success to making straightforward and sensible choices, benefiting from the steady growth of the American economy, and the effects of compounding wealth over time.
Background and Context
The Class B shares being donated are priced lower than Berkshire’s original Class A shares, making them more accessible to a broader range of investors. This donation continues Buffett’s long-standing commitment to philanthropy, which began in earnest in 2006 with his initial pledge to give away the majority of his wealth.
Buffett’s investment approach has consistently focused on long-term value creation rather than short-term market speculation, a strategy that has contributed to Berkshire Hathaway’s sustained outperformance of broader market indices over multiple decades.
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