Billionaire Buffett to donate 37 billion to charity

Largest contribution to be given to the Bill and Melinda Gates Foundation.

By
June 26, 2006 03:17
2 minute read.
warren buffett 298.88

warren buffett. (photo credit: Associated Press)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

Billionaire investor Warren Buffett announced plans Sunday to give the bulk of his roughly $42 billion fortune to five foundations in annual gifts of stock starting next month. The decision represents a stark reversal for the world's second-richest man, who for years had said his wealth would be pledged to philanthropies after his death. Moreover, his vast holdings of Berkshire Hathaway Inc. stock had been expected to go largely to the Susan Thompson Buffett Foundation, begun by his late wife. Her foundation has given millions of dollars to hospitals, universities and teachers, as well as to Planned Parenthood and other abortion rights groups. Instead the 75-year-old chairman and chief executive of Berkshire Hathaway plans to give the largest contribution to the Bill and Melinda Gates Foundation, established by Buffett's friend and Berkshire board member Bill Gates. Buffett's gift will increase the resources of the Gates Foundation, which is already the world's largest philanthropy with assets of about $29.1 billion. Calls to Berkshire Hathaway's offices were not immediately returned Sunday, but letters outlining the gifts were posted on the company's Web site. Fortune magazine reported on Buffett's decision earlier. The Gates' issued a joint statement applauding Buffett's decision. "We are awed by our friend Warren Buffett's decision to use his fortune to address the world's most challenging inequities, and we are humbled that he has chosen to direct a large portion of it to the Bill & Melinda Gates Foundation," Bill and Melinda Gates said. Over time Buffett plans to give away 12,050,000 Class B shares of Berkshire Hathaway stock to the foundations, but he will have to convert some of his 498,320 Class A shares to complete the gifts. One Class A share, which sold for $92,100 on Friday, can be converted into 30 Class B shares, which sold for 3,071 Friday on the New York Stock Exchange. The gifts would be worth nearly $37 billion at Friday's Class A share prices. Buffett said he plans to earmark 10 million B shares for the Gates Foundation, 1 million B shares for the Susan Thompson Buffett Foundation named in honor of his wife and 350,000 shares for the three foundations run by each of his children. Buffett plans to give each foundation 5 percent of his total pledge each year in July. Buffett's health has been the subject of speculation. He has said a succession plan is in place at Berkshire but refuses to name a successor. In the letters, Buffett wrote, "My doctor tells me that I am in excellent health, and I certainly feel that I am." Buffett, the chief executive officer of Berkshire Hathaway Inc, is known in Israel for his 4 billion dollar investment, which bought him 80 percent of the Israeli company Iscar. He told the Jerusalem Post a few days after announcing the purchase in early May, that his company planned to be in Israel way beyond his lifetime.

Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS