Buffett's succession plan: How his $147B fortune will be divided
Renowned billionaire investor Warren Buffett has donated over $1.1 billion worth of Berkshire Hathaway stocks to four family charities and foundations on November 25. The act of philanthropy is a part of his Thanksgiving tradition. Along with the generous donation, Buffett also revealed his succession plans for his massive fortune worth $147.4 billion, according to an AP report.
Buffett's succession plan: Who gets what
Buffett has previously said that his three children would inherit his $147.4 billion fortune over a decade after his death. However, on November 25, he also named an undisclosed successor for his children in case they die before receiving their full inheritance. The identity of this successor remains confidential but according to Buffett's letter to fellow shareholders, his children are aware of them and agree with their selection.
Buffett's views on dynastic wealth and inheritance
Buffett has always maintained that he is not interested in building dynastic wealth. However, he has admitted to giving millions to his children Howard, Peter, and Susie, over the years. He strongly believes that "hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing." The statement perfectly sums up his balanced outlook toward wealth distribution in families.
Buffett's wealth accumulation and lifestyle
Buffett's massive wealth has been built on the power of compounding interest and the consistent growth of the Berkshire conglomerate he heads. His shrewd investments include purchasing billions of dollars worth of Apple shares as iPhone sales continued to propel growth at that company. Despite his massive wealth, Buffett still lives in the same Omaha home he bought decades ago and drives sensible luxury sedans to work.
Buffett's philanthropic efforts and the Giving Pledge
Had Buffett and his first wife never donated any of their Berkshire shares, their fortune would be worth nearly $364 billion. Since Susan Buffett's death in 2004, the family has distributed a $3 billion estate. In 2006, Buffett announced annual gifts to foundations run by his children and even to the Bill & Melinda Gates Foundation. So far, he has given the Gates Foundation $55 billion in stock.
