OMAHA, Neb. — Warren Buffett, the legendary investor and chairman of Berkshire Hathaway Inc., announced on Monday that he is accelerating the donation of his vast fortune to his children's charitable foundations, even as he prepares to step down as chief executive early next year. In a Thanksgiving letter to shareholders, the 95-year-old billionaire outlined his plans to transfer more of his $149 billion in Berkshire stock sooner than previously anticipated, citing the advancing ages of his children as a key factor.
Buffett, who has long pledged to give away nearly all of his wealth, explained that speeding up the process would allow his three children—Howard, Susan, and Peter—to oversee the distribution of his estate through their respective foundations. According to the letter, reported by CNBC and detailed on Benzinga.com, this move increases the likelihood that they will manage the funds before any alternate trustees step in. Buffett emphasized that the change does not reflect any diminished confidence in Berkshire's future.
In the letter, Buffett wrote,
“I need to speed up transferring my Berkshire stock to my children's foundations due to their advancing ages.”He noted that his children are now in their 60s and 70s, prompting the urgency. The investor recently converted 1,800 of his high-priced Class A shares into 2.7 million Class B shares, donating them to four family-backed charities: the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation. The donation was valued at over $1.3 billion, based on share prices at the time.
Buffett, Berkshire's largest shareholder with holdings worth approximately $149 billion as of the second quarter, holds most of his wealth in those premium Class A shares. He intends to retain a substantial portion of them until investors become comfortable with his successor, Greg Abel, much as they did with Buffett himself and his late partner, Charlie Munger. Abel, 63, currently serves as vice chairman for noninsurance operations and is set to take over as CEO in early 2025, while Buffett remains chairman.
The letter marks Buffett's first major public statement since revealing his intention to relinquish the CEO role, ending a storied six-decade tenure that transformed Berkshire from a faltering textile company into a conglomerate valued at over $1 trillion. Buffett recounted the company's evolution, highlighting its growth into a powerhouse spanning insurance, transportation, utilities, and consumer brands. He reiterated Berkshire's resilience, stating that it is built to withstand almost any economic challenge.
Touching on his health, Buffett shared that he feels generally well but moves more slowly and has difficulty reading. Despite these challenges, he continues to work at the office five days a week alongside colleagues he admires. “I feel generally well despite moving more slowly and reading with difficulty,” he wrote.
Buffett also signaled a shift in his public presence, declaring that he will step back from some of his traditional duties.
“I will no longer be writing Berkshire's annual report or talking endlessly at the annual meeting. As the British would say, I'm ‘going quiet.’ Sort of,”he stated. However, he plans to continue publishing an annual Thanksgiving note, maintaining a thread of communication with shareholders.
Praising his successor, Buffett described Abel as “a great manager, a tireless worker and an honest communicator.” He added,
“Wish him an extended tenure.”Starting next year, Abel will take over writing Berkshire's renowned annual letters to shareholders. Buffett expressed confidence that trust in Abel would build quickly, noting that his children and Berkshire's board already fully support him.
The announcement comes amid a period of transition for Berkshire Hathaway, listed on the New York Stock Exchange under tickers BRK.A and BRK.B. The company, headquartered in Omaha, Nebraska, has become synonymous with Buffett's value investing philosophy, attracting thousands of shareholders to its annual meetings, often dubbed the “Woodstock for Capitalists.” Buffett's partnership with Munger, who died in 2023 at age 99, was instrumental in building the firm's reputation for prudent, long-term investments.
Buffett's philanthropic efforts have been a cornerstone of his legacy. Since 2006, he has donated billions to various causes, primarily through the Bill & Melinda Gates Foundation and his family's organizations. The Susan Thompson Buffett Foundation, named after his late wife, focuses on reproductive health and education. The Howard G. Buffett Foundation supports global food security and conflict resolution, while the Sherwood Foundation aids community development in Nebraska, and the NoVo Foundation, run by Peter Buffett, promotes social justice and gender equity.
In his letter, Buffett closed on a lighthearted note, wishing readers a happy Thanksgiving.
“I wish all who read this a very happy Thanksgiving. Yes, even the jerks; it's never too late to change,”he wrote. This Thanksgiving letter is intended to become an annual tradition, providing Buffett a platform to share updates even as he reduces his involvement in other communications.
The accelerated giving plan aligns with Buffett's long-standing commitment to philanthropy, inspired by his belief that dynastic wealth can be detrimental. He has often quoted Andrew Carnegie's view that leaving vast fortunes to heirs is unwise. By entrusting his children with the distribution, Buffett aims to ensure his wealth supports charitable causes effectively, rather than accumulating indefinitely.
Investors and analysts have reacted positively to the news, with Berkshire's stock showing stability following the announcement. Shares of BRK.B closed at around $475 on Monday, reflecting ongoing confidence in the company's leadership transition. Abel, who joined Berkshire in 1992 through its acquisition of MidAmerican Energy, has risen through the ranks and is seen as a steady hand to guide the firm forward.
Looking ahead, Berkshire faces a post-Buffett era, but the investor's letter underscores the company's structural strengths. With a diverse portfolio including Geico insurance, BNSF Railway, and stakes in companies like Apple and Coca-Cola, Berkshire is positioned for continued growth. Buffett's partial step back may allow Abel to imprint his style on the firm, while Buffett's ongoing role as chairman provides continuity.
As Buffett 'goes quiet—sort of,' his influence on American business and investing endures. The Thanksgiving letter not only outlines his personal plans but also reaffirms the principles that have defined Berkshire Hathaway for decades, offering reassurance to shareholders amid change.