Warren Buffett, the super billionaire with a personal fortune of $150 billion, has spoken out against creating a family wealth “dynasty,” stating that he does not plan to leave huge amounts of wealth to his children. He wants his children to enjoy comfort without being burdened by wealth.
Buffett has appointed three independent trustees to oversee the charitable endeavors left to his children and has donated $1.14 billion worth of Berkshire Hathaway company stock to four family foundations. The 94-year-old legendary investor has not directly left a substantial inheritance to his three children, as he has pledged to gradually donate 99% of his accumulated wealth in Berkshire Hathaway since 1965.
According to Buffett, creating a family wealth dynasty could lead to negative consequences such as compromising personal growth and complicating interpersonal relationships. It could also create uncertainty within the family, as the decisions made by future generations on distributing this wealth are unpredictable.
In a lengthy letter written on Monday, Buffett expressed, “I have never thought about creating a dynasty, nor do I seek any plans beyond my children’s wishes.” He mentioned, “I know these three children well and trust them completely. Descendants are a different matter. Who could predict the priorities, wisdom, and loyalty in how future generations handle the allocation of such enormous wealth?”
The “Oracle of Omaha,” who holds 37.6% of Berkshire Hathaway Class A stock, stated that it would take a long time to deploy such a vast asset accumulation and managing it could even exceed the lifetimes of his children.
Therefore, Buffett has appointed the three trustees of the charitable trust, who may inherit his wealth from his children. Buffett’s three children are currently 71, 69, and 66 years old.
“I have designated three potential successor trustees. Each one is known to my children and is reliable to all of us. They are also younger than my children,” Buffett wrote. “But these successors are on a waiting list. I hope Susie, Howie, and Peter can be responsible for paying all my assets themselves.”
Susie, Howie, and Peter are the names of Buffett’s three children.
Buffett did not disclose the identities of the trustees.
Since 2006, Buffett has been donating to four family foundations annually.
“Between 2006 and 2024, I had the opportunity to observe the behavior of each child, and they learned a lot about large-scale philanthropy and how to conduct themselves,” Buffett said.
“They enjoy economic comfort, but they are not burdened by wealth. They have learned these values from their mother, who would be very proud of them. So am I,” Buffett added.
On Monday, Buffett converted 1,600 shares of Berkshire Hathaway Class A stock into 2.4 million Class B shares and donated them to four family foundations. He donated 1.5 million shares to The Susan Thompson Buffett Foundation, and 300,000 shares each to the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation.
The donated stocks are valued at $1.14 billion.
Buffett’s Berkshire Hathaway company, which this year exceeded a market value of $1 trillion, owns many mature businesses.