Warren Buffet to give away his fortune to Bill Gates

[Kaleb]

Worth about $44 billion. Just announced that he will give away about $37 billion of his fortune upon his death.

I think that is the freakin' coolest thing I have read in a long-time.

Warren Buffett gives away his fortune
FORTUNE EXCLUSIVE: The world's second richest man - who's now worth $44 billion - tells editor-at-large Carol Loomis he will start giving away 85% of his wealth in July - most of it to the Bill & Melinda Gates Foundation.
FORTUNE Magazine
By Carol J. Loomis, FORTUNE editor-at-large
June 25, 2006: 1:42 PM EDT

NEW YORK (FORTUNE Magazine) - We were sitting in a Manhattan living room on a spring afternoon, and Warren Buffett had a Cherry Coke in his hand as usual. But this unremarkable scene was about to take a surprising turn.

"Brace yourself," Buffett warned with a grin. He then described a momentous change in his thinking. Within months, he said, he would begin to give away his Berkshire Hathaway fortune, then and now worth well over $40 billion.
More from FORTUNE
Buffett gives away his fortune
Bill Gates' next career
Who's afraid of Nathan Myhrvold?
FORTUNE 500
Current Issue
Subscribe to Fortune
Warren Buffett gives it away

* An interview with Buffett

* How the giveaway will work

* The force called the Gates Foundation

From the FORTUNE archives
Should you leave it all to the children?
If you do, you may not be doing them a favor. But if you want to, there are sensible ways of passing on what you have without depriving the kids of a feeling of achievement. (more)
Letters from Buffett
As part of his plan, Warren Buffett is sending letters to each of the five foundations that will be receiving his gifts. The letters may be found on Berkshire Hathaway's Web site. (See the letters)

This news was indeed stunning. Buffett, 75, has for decades said his wealth would go to philanthropy but has just as steadily indicated the handoff would be made at his death. Now he was revising the timetable.

"I know what I want to do," he said, "and it makes sense to get going." On that spring day his plan was uncertain in some of its details; today it is essentially complete. And it is typical Buffett: rational, original, breaking the mold of how extremely rich people donate money.

Buffett has pledged to gradually give 85% of his Berkshire stock to five foundations. A dominant five-sixths of the shares will go to the world's largest philanthropic organization, the $30 billion Bill & Melinda Gates Foundation, whose principals are close friends of Buffett's (a connection that began in 1991, when a mutual friend introduced Buffett and Bill Gates).

The Gateses credit Buffett, says Bill, with having "inspired" their thinking about giving money back to society. Their foundation's activities, internationally famous, are focused on world health -- fighting such diseases as malaria, HIV/AIDS, and tuberculosis -- and on improving U.S. libraries and high schools.

Up to now, the two Gateses have been the only trustees of their foundation. But as his plan gets underway, Buffett will be joining them. Bill Gates says he and his wife are "thrilled" by that and by knowing that Buffett's money will allow the foundation to "both deepen and accelerate" its work. "The generosity and trust Warren has shown," Gates adds, "is incredible." Beginning in July and continuing every year, Buffett will give a set, annually declining number of Berkshire B shares - starting with 602,500 in 2006 and then decreasing by 5% per year - to the five foundations. The gifts to the Gates foundation will be made either by Buffett or through his estate as long as at least one of the pair -- Bill, now 50, or Melinda, 41 -- is active in it.

Berkshire's price on the date of each gift will determine its dollar value. Were B shares, for example, to be $3,071 in July - that was their close on June 23 - Buffett's 2006 gift to the foundation, 500,000 shares, would be worth about $1.5 billion. With so much new money to handle, the foundation will be given two years to resize its operations. But it will then be required by the terms of Buffett's gift to annually spend the dollar amount of his contributions as well as those it is already making from its existing assets. At the moment, $1.5 billion would roughly double the foundation's yearly benefactions. But the $1.5 billion has little relevance to the value of Buffett's future gifts, since their amount will depend on the price of Berkshire's stock when they are made. If the stock rises yearly, on average, by even a modest amount - say, 6% - the gain will more than offset the annual 5% decline in the number of shares given. Under those circumstances, the value of Buffett's contributions will rise.

Buffett himself thinks that will happen. Or to state that proposition more directly: He believes the price of Berkshire, and with it the dollar size of the contributions, will trend upward - perhaps over time increasing substantially. The other foundation gifts that Buffett is making will also occur annually and start in July. At Berkshire's current price, the combined 2006 total of these gifts will be $315 million. The contributions will go to foundations headed by Buffett's three children, Susan, Howard, and Peter, and to the Susan Thompson Buffett Foundation.

This last foundation was for 40 years known simply as the Buffett Foundation and was recently renamed in honor of Buffett's late wife, Susie, who died in 2004, at 72, after a stroke. Her will bestows about $2.5 billion on the foundation, to which her husband's gifts will be added. The foundation has mainly focused on reproductive health, family planning, and pro-choice causes, and on preventing the spread of nuclear weapons. Counting the gifts to all five foundations, Buffett will gradually but sharply reduce his holdings of Berkshire (Charts) stock. He now owns close to 31% of the company-worth nearly $44 billion in late June - and that proportion will ultimately be cut to around 5%. Sticking to his long-term intentions, Buffett says the residual 5%, worth about $6.8 billion today, will in time go for philanthropy also, perhaps in his lifetime and, if not, at his death.

Because the value of Buffett's gifts are tied to a future, unknowable price of Berkshire, there is no way to put a total dollar value on them. But the number of shares earmarked to be given have a huge value today: $37 billion.

That alone would be the largest philanthropic gift in history. And if Buffett is right in thinking that Berkshire's price will trend upward, the eventual amount given could far exceed that figure.

So that's the plan. What follows is a conversation in which Buffett explains how he moved away from his original thinking and decided to begin giving now. The questioner is yours truly, FORTUNE editor-at-large Carol Loomis. I am a longtime friend of Buffett's, a Berkshire Hathaway shareholder, and a director of the Susan Thompson Buffett Foundation.

 

[sinewave]

Yup, I read about that this weekend. I love how progressive these guys are. It's great to see people with this kind of wealth actually attempting to make the world better with it, unlike those creeps at Enron or Haliburton.

 

[Mr. Credible]

wow. i was pissed when i read the title of the thread. i was like "why does bill gates need more money?!??!!???"

but i'm okay now... i'm cool.

 

[TheSumOfGod]

The world's number 2 richest man is gonna give nearly all of his money to the world's number 1 richest man? Wow, that makes me feel great.

And remember, Warren Buffet knew about 9/11 ahead of time, and he made a s**tload of money off of the Twin Towers falling into dust. Just ask Wilhelm.

 

[Darthphere]

The world's number 2 richest man is gonna give nearly all of his money to the world's number 1 richest man? Wow, that makes me feel great.

And remember, Warren Buffet knew about 9/11 ahead of time, and he made a s**tload of money off of the Twin Towers falling into dust. Just ask Wilhelm.

Hes giving the money to Bill Gates charity foundation.

 

[TheSumOfGod]

Hes giving the money to Bill Gates charity foundation.

Doesn't matter. He could have given it to third world countries or inner city youths, but NO, he's giving it to Bill Gates' own foundation. lol

 

[Darthphere]

Doesn't matter. He could have given it to third world countries or inner city youths, but NO, he's giving it to Bill Gates' own foundation. lol

Bill gates foundation spreads the money out to all those things you just listed. Stop being cynical.

 

[sinewave]

Doesn't matter. He could have given it to third world countries or inner city youths, but NO, he's giving it to Bill Gates' own foundation. lol

 

[TheSumOfGod]

Stop being cynical.

Warren Buffet is a total exploitative sociopathic scumbag. Giving to charity (especially a rich man's charity) isn't gonna change that.

 

[War Lord]

Warren Buffet is a total exploitative sociopathic scumbag. Giving to charity (especially a rich man's charity) isn't gonna change that.

Yeah, what a scumbag. Giving to a foundation that treats the third world of its problems.

 

[Leto Atrides]

Warren Buffet is a total exploitative sociopathic scumbag. Giving to charity (especially a rich man's charity) isn't gonna change that.

What does that mean? You have to have money to give it to other people.

Even if he is a scumbag (which I don't know if he is) what would be a better use for it? Would you prefer his "dirty money", so to speak, just go to his kids, and not help anyone?

 

[sinewave]

Warren Buffet is a total exploitative sociopathic scumbag. Giving to charity (especially a rich man's charity) isn't gonna change that.

Dude, you really need to do some research on this issue. At least read the article and see what causes those foundations support. It's a good thing, trust me.

 

[War Lord]

What does that mean? You have to have money to give it to other people.

Even if he is a scumbag (which I don't know if he is) what would be a better use for it? Would you prefer his "dirty money", so to speak, just go to his kids, and not help anyone?

He's rather have Bill Gates go into the the heart of a ghetto, with a truckload of bills and leave the truck in the middle of the street with all doors open.

 

[Karem-Knight]

Warren Buffet is a total exploitative sociopathic scumbag. Giving to charity (especially a rich man's charity) isn't gonna change that.

You REALLY need to get out more

 

[TheSumOfGod]

You REALLY need to get out more

YOU need to find out more about him. He knew 9/11 was gonna happen, and not only did he do nothing to prevent it, but he even profited from it. Here's more info: click

 

[squeekness]

One of the big things that Bill Gates Foundation works with is getting cost effective meds to AIDs patients in Africa and spreading HIV awareness and prevention. Whatever you might think of Bill Gates, his Foundation does some awesome work overseas.

 

[sinewave]

YOU need to find out more about him. He knew 9/11 was gonna happen, and not only did he do nothing to prevent it, but he even profited from it. Here's more info: click

dude, you're basing his entire character off a highly suspicious conspiracy theory? how does this change the fact that his money is going to many, many excellent causes? you're acting pretty damn irrational.

 

[TheSumOfGod]

dude, you're basing his entire character off a highly suspicious conspiracy theory?

It's not a "highly suspicious conspiracy theory", it's a series of confirmed, irrefutable facts that point in only one direction: He knew 9/11 was going to happen, and he let it happen. He only saved his own ass, and some of the people working in the WTC that he cared about. And not only that, he made a ton of money off of this supposed "terrorist attack".

 

[LEX]

My thought when I saw the title:
"Pfftt. Like Bill Gates isn't rich enough. God. "

My though after I read this thread:
"Warren Buffet is giving his money to Bill Gates' foundation. Now, that is just too kind.
Warren is cool in my book now."

 

[THWIP*]

YOU need to find out more about him. He knew 9/11 was gonna happen, and not only did he do nothing to prevent it, but he even profited from it. Here's more info: click

LOL......YOU USE 'THEWEBFAIRY' AS YOUR SOURCE..........THAT'S F***ING GREAT.

 

[squeekness]

I would so much rather read about rich guys like this giving their money away to Foundations and folks like Angelina Jolie giving money and time away to help starving kids in Africa then to hear stoopid stories of Tom Cruise eating his kid's placenta. If you're that rich, I think you're morally obligated to spread some of it around, not act like an idiot.

 

[Aqua Is Forever]

LOL......YOU USE 'THEWEBFAIRY' AS YOUR SOURCE..........THAT'S F***ING GREAT.

That should be his title

 

[TheSumOfGod]

"Now, that is just too kind.
Warren Buffet is cool in my book now."

Which is precisely what Mr. Buffett wants people to think. "See? I'm a nice guy! So what if I profited from the deaths of over 3,000 innocent people? All that matters now is that you'll remember me as a nice guy, right?"

 

[LEX]

I would so much rather read about rich guys like this giving their money away to Foundations and folks like Angelina Jolie giving money and time away to help starving kids in Africa then to hear stoopid stories of Tom Cruise eating his kid's placenta. If you're that rich, I think you're morally obligated to spread some of it around, not act like an idiot.

You said it. I whole-heartedly agree.

Which is precisely what Mr. Buffett wants people to think. "See? I'm a nice guy! So what if I profited from the deaths of over 3,000 innocent people? All that matters now is that you'll remember me as a nice guy, right?" :rolleyes

You know this, how? You spoke to the guy? Your conspiracy theories were amusing at first, but it's getting old, frankly.

Rich guys. I must steal their handbooks.

 

[sinewave]

It's not a "highly suspicious conspiracy theory", it's a series of confirmed, irrefutable facts that point in only one direction: He knew 9/11 was going to happen, and he let it happen. He only saved his own ass, and some of the people working in the WTC that he cared about. And not only that, he made a ton of money off of this supposed "terrorist attack".

okay, let's just pretend this conspiracy theory is true, how does it change the fact that he's doing a good thing by donating tens of billions of dollars to help people all over the world?