America’s most famous investor Warren Buffett has spoken out about why he will not leave his vast fortune to his children.
The so-called “Oracle of Omaha,” worth about $150 billion, said he “never wanted to create a dynasty.”
The 94-year-old made the comments as he appointed three independent trustees to oversee his philanthropy after his three children, CNBC reported.
The investor is known for having long promised not to give his children an inheritance, but to give away 99 percent of the money he made through his company Berkshire Hathaway.
In a letter released Monday, the billionaire wrote: “I never wanted to create a dynasty or pursue a plan that extended beyond the children.
‘I know the three well and trust them completely. Future generations are another matter. Who can foresee the priorities, intelligence and loyalty of successive generations to deal with the distribution of extraordinary wealth in what may be a very different philanthropic landscape?’
Buffett has three children, who are now 71, 69 and 66 years old. He has expected that it will take longer for his wealth to be paid out than his children are alive.
In addition to appointing trustees, Buffett also donated an additional $1.1 billion in Berkshire Hathaway stock to his family’s four charitable foundations.
America’s most famous investor Warren Buffett has spoken out about why he will not leave his vast fortune to his children (photo: Howard, Susie, Warren and Peter Buffett in 2011)
The identities of the trustees are not known, but he said each of them is well known by his children.
“They are also a bit younger than my children,” Buffett wrote.
‘But these successors are on the waiting list. I hope that Susie, Howie and Peter will pay for all my assets themselves.’
Buffett has made an annual donation to the four family foundations since 2006.
These are the Susan Thompson Buffett Foundation – named after his late wife – The Sherwood Foundation, The Howard G. Buffett Foundation and NoVo Foundation.
He added that through years of observation, he has built strong confidence in his children’s management ability and philanthropic ambition, CNBC reported.
“The period 2006-2024 gave me the opportunity to observe each of my children in action and they learned a lot about large-scale philanthropy and human behavior,” he said.
“They like to be comfortable financially, but they are not concerned with wealth. Their mother, from whom they learned these values, would be very proud of them. Just like me.’
Buffett has led Omaha, Nebraska-based Berkshire Hathaway since 1965.
The company, which owns Geico Insurance and well-known brands such as See’s Candies and Dairy Queen, became the first non-tech company to reach a $1 trillion valuation earlier this year.
It comes after the company made surprise investments in Domino’s Pizza and a swimming pool supplier this fall, sending both companies’ stock prices soaring.
The investor said that through years of observation he had strong confidence in the management ability and philanthropic ambition of his children (Photo: Howard, Susie and Peter Buffett)
Berkshire held 1.28 million shares of Domino’s at the end of September for a stake of about $549 million
Domino’s rose by no less than 8 percent.
Berkshire Hathaway held 1.28 million shares in the pizza chain at the end of September for a stake of about $549 million.
The conglomerate also bought 404,000 shares of Pool Corp., a pool supplies distributor, worth about $152 million at that date.
The filing also confirmed that Berkshire had sold more shares in Apple and Bank of America.
Stocks often rise after Berkshire announces new investments, as investors believe Buffett is giving a seal of approval.