Berkshire Hathaway chairman and CEO Warren Buffett has a famous history of giving a large part of his wealth to causes he believes in.
Among them is his support for the Bill & Melinda Gates Foundation.
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The foundation has said its mission is to improve health, education and poverty on a global scale.
Now, Buffett has announced he is donating shares equal to $3.5 billion worth of Berkshire Hathaway Class B (BRK.B) stock to the Bill & Melinda Gates Foundation, according to a press release.
He is also donating shares to other philanthropies, including one named for his late wife and to three others run by his children.
"Warren E. Buffett has converted 9,129 'A' (BRK.A) shares into 13,693,500 B shares in order to donate 13,693,432 shares of Berkshire Hathaway 'B' stock to five foundations: 10,453,008 to the Bill & Melinda Gates Foundation Trust, 1,045,300 shares to the Susan Thompson Buffett Foundation and 731,708 shares to each of the Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation," the press release said.
Buffett made a few comments about the transaction.
"The mathematics of the lifetime commitments to the five foundations are interesting," he said, according to the press release. "The schedule for annual grants was made on June 26, 2006, and has since been supplemented by significant grants to four of the five recipients. When originally made, I owned 474,998 Berkshire A shares worth about $43 billion and those shares represented more than 98% of my net worth. I have converted A shares into B shares before making contributions."
Buffett also recounted his history of philanthropic contributions since 2006.
"During the following 17 years, I have neither bought nor sold any A or B shares nor do I intend to do so," he said. "The five foundations have received Berkshire B shares that had a value when received of about $50 billion, substantially more than my entire net worth in 2006. I have no debts and my remaining A shares are worth about $112 billion, well over 99% of my net worth."
"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," he added. "My will provides that more than 99% of my estate is destined for philanthropic usage."
Kevin Mazur/Getty Images for Robin Hood
Buffett had joined the Bill & Melinda Gates Foundation as a trustee in 2006. He helped shape the vision and strategies of the foundation, which has spent more than $60 billion on various causes since its inception in 2000.
Buffett and Bill Gates, the Microsoft (MSFT) co-founder, have been close friends for decades, together with Melinda French Gates, sharing a passion for business and philanthropy.
They also launched the Giving Pledge in 2010, a campaign that encourages billionaires to give away most of their wealth to charitable causes.
However, Buffett announced his resignation as a trustee of the foundation in June 2021, saying he wanted to step away from his formal role.
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