Warren Buffett Donates USD 6 Billion in Berkshire Hathaway Stock to Five Foundations

Warren Buffett, a renowned investor, is donating USD 6 billion in stock from his company to five foundations. This donation increases his total contributions since 2006 to approximately USD 60 billion, based on the value at the time of receipt. The shares of Berkshire Hathaway will be distributed on Monday.

Berkshire Hathaway, which owns companies like Geico and Dairy Queen, will see nearly 12.4 million Class B shares donated. These shares are more affordable than the original Class A shares, with each B share valued at USD 485.68 as of last Friday's close.

Significant Donations to Foundations

The largest portion of this donation, 9.4 million shares, will go to the Bill and Melinda Gates Foundation Trust. The Susan Thompson Buffett Foundation will receive 943,384 shares. Additionally, the Sherwood Foundation, Howard G Buffett Foundation, and NoVo Foundation will each receive 660,366 shares.

Last year, Buffett announced plans to stop donations to the Gates Foundation after his death. He intends for his three children to decide how to distribute the remainder of his wealth.

Berkshire Hathaway's Stock Performance

Over the past year, Berkshire Hathaway's Class B stock has risen by 19.1%, surpassing the broader US stock market's return of 14.1%, including dividends. Buffett is known for acquiring companies at favourable prices and being cautious when prices seem inflated.

This strategy has allowed him to accumulate a fortune estimated at USD 145 billion, primarily held in Berkshire Hathaway stock. "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 stated.

Buffett's will specifies that approximately 99% of his estate is intended for philanthropic purposes. His approach to investing and philanthropy reflects a commitment to using his wealth for societal benefit.

With inputs from PTI