Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Warren Buffett resigns from Gates Foundation, has donated half his fortune

Stock MarketsJun 24, 2021 08:31
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Berkshire Hathaway CEO Warren Buffett (R) shows his friend Microsoft co-founder Bill Gates the finer points of newspaper tossing, prior to the Berkshire annual meeting in Omaha, Nebraska May 2, 2015. REUTERS/Rick Wilking/File Photo

By Jonathan Stempel and Eva Mathews

(Reuters) - Billionaire investor Warren Buffett said he is resigning as a trustee of the Bill and Melinda Gates Foundation, and has donated half his wealth to philanthropy since pledging 15 years ago to give away his fortune from running Berkshire Hathaway Inc . (NYSE:BRKa)

Buffett, 90, said in a Wednesday statement he has been an "inactive trustee" for years at the foundation, but fully supported Chief Executive Mark Suzman and that their goals were "100% in sync."

He did not explain why he is resigning, while noting he has given up all directorships outside Berkshire, reducing his workload.

Buffett also announced a new donation of more than $4.1 billion, comprising nearly 15.2 million Berkshire Class "B" shares, to the Gates Foundation and four family charities, part of his pledge to give away 99% of his net worth.

He has since 2006 donated more than $41.5 billion of Berkshire shares, including $32.7 billion to the Gates Foundation. The overall total is now equivalent to about $100 billion because Berkshire's stock price has risen.

"Over many decades I have accumulated an almost incomprehensible sum simply by doing what I love to do," Buffett said. "Society has a use for my money: I don't."

Founded in 2000, the Gates Foundation focuses on combating poverty, disease and inequity, spending $54.8 billion in its first two decades.

Its future has been uncertain since its namesake co-founders said last month they were divorcing after 27 years of marriage.

Microsoft Corp (NASDAQ:MSFT) later said it had reviewed an accusation that Bill Gates had tried in 2000 to have an intimate relationship with an employee.

GOVERNANCE COMMITMENT

In an email to Gates Foundation employees, Suzman said he has discussed with Buffett and the Gateses how to strengthen governance and decisionmaking, and planned to share more information in July.

"I am fully committed to following [Buffett's] guidance to ensure we are the best possible stewards of his, Bill, and Melinda's resources," Suzman said.

In statements released by the foundation, Bill Gates said he was grateful for his "enduring friendship" with Buffett and that "we will always have a deep sense of accountability" to him, while Melinda French Gates said Buffett's teachings will help "chart a way forward."Berkshire did not immediately respond to a request for comment.

Buffett's donations also go to the Susan Thompson Buffett Foundation, named for his late first wife, and charities run by his children Howard, Susan and Peter: the Howard G. Buffett Foundation, the Sherwood Foundation and the Novo Foundation.

Had Buffett not made his donations, his fortune would roughly equal that of Amazon.com Inc (NASDAQ:AMZN) founder Jeff Bezos, the world's richest person according to Forbes magazine.

Bill Gates and Buffett also pioneered "The Giving Pledge," where more than 200 people like Michael Bloomberg, Larry Ellison, Carl Icahn, Elon Musk, Mark Zuckerberg and Saudi Prince Alwaleed bin Talal have committed at least half their fortunes to philanthropy.

NO 'SWAN SONG'

Buffett has since 1965 built Omaha, Nebraska-based Berkshire into a more than $600 billion conglomerate, owning businesses such as the BNSF railroad and Geico auto insurance, and stocks such as Apple Inc (NASDAQ:AAPL).

He still holds 31.5% of Berkshire's voting power, even after the donations.

Buffett's statement on Wednesday also addressed recent criticism after a ProPublica investigation included him among wealthy people who paid low taxes.

Buffett said his donations have resulted in only about 40 cents of tax savings per $1,000 given.

"Nevertheless, tax deductions are important to many - particularly to the super-rich - who give large amounts of cash or securities to philanthropy," he said.

Buffett also used references to American football to assure fans he has no plans to step away, including from Berkshire.

"These remarks are no swan song," he said. "I still relish being on the field and carrying the ball. But I'm clearly playing in a game that, for me, has moved past the fourth quarter into overtime."

Warren Buffett resigns from Gates Foundation, has donated half his fortune
 

Related Articles

Former Virgin Galactic CEO to fly to space - CNBC
Former Virgin Galactic CEO to fly to space - CNBC By Reuters - Jul 24, 2021

(Reuters) - Former chief executive officer of Virgin Galactic Holdings, George Whitesides, will fly to space on the aerospace company's next test spaceflight, CNBC reported on...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (5)
Alex Malmström
Alex Malmström Jun 25, 2021 6:17
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tax write-off, nothing else.
bs brahmachari
bs brahmachari Jun 24, 2021 3:56
Saved. See Saved Items.
This comment has already been saved in your Saved Items
you are so lovable sir Buffett. so unlike some billionaires of my country India
Massimo Calvo
Massimo Calvo Jun 23, 2021 21:04
Saved. See Saved Items.
This comment has already been saved in your Saved Items
A man, a legend! Chapeau Mr Buffet
jan hui
jan hui Jun 23, 2021 19:44
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What an absolute legend
Chris Hm
Chris Hm Jun 23, 2021 16:40
Saved. See Saved Items.
This comment has already been saved in your Saved Items
"Society has a use for my money: I don't." ...you don't hear that so often !
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email