"I Will Accelerate the Pace of Donating My 200 Trillion Won Fortune"
Ensuring Shareholder Confidence in Successor CEO Abel
Warren Buffett, the Chairman of Berkshire Hathaway and known as the "Oracle of Omaha," announced that he will continue to hold his Berkshire Hathaway shares until shareholders' trust in his successor is firmly established. He also stated that he plans to accelerate the pace at which he donates his fortune, worth over 200 trillion won, to his children's charitable foundations.
On November 10 (local time), Buffett revealed these plans in a shareholder letter released ahead of Thanksgiving later this month.
Buffett expressed his intention to retain his Berkshire Hathaway shares for a certain period until shareholders' confidence in Greg Abel, the company's next CEO, is firmly in place. Earlier, Buffett officially announced his retirement as CEO by the end of this year, with Vice Chairman Greg Abel set to take over management. Buffett will remain as Chairman of the Board.
He stated, "It won't take long for confidence in Greg as CEO to build," emphasizing, "My children already support Greg 100%, and so do the Berkshire Hathaway board members."
As of the end of the second quarter this year, Buffett remains the largest shareholder of Berkshire Hathaway, holding approximately $149 billion (about 217 trillion won) worth of shares. His holdings are primarily composed of Class A shares, which trade at about $751,480 per share.
He also explained that, since his children are already advanced in age, it is necessary to distribute his Berkshire Hathaway shares to their foundations more quickly. He added, "By doing so, my children will have a greater chance to directly manage their inheritance before other trustees replace them."
Buffett's children-Susie, Howard, and Peter-are all in their 60s and 70s, while Buffett himself is 95 years old this year.
Since declaring in 2006 that he would donate 99% of his wealth to society, Buffett has regularly contributed to several family-run charitable foundations. To date, he has donated about 60% of his total fortune. The family foundations include the Susan Thompson Buffett Foundation, named after his late wife, and three other foundations managed by each of his children.
On this day, Buffett additionally donated some of his Berkshire Hathaway shares to the family foundations, with the donation amounting to approximately $1.3 billion (about 1.9 trillion won).
He emphasized, "Increasing my lifetime donations to my children's foundations does not mean that my outlook on Berkshire Hathaway's prospects has changed," reaffirming his confidence in the company's future.
Buffett also commented on his health, stating, "Surprisingly, I feel good most of the time," and added, "Although I am moving more slowly and reading is becoming increasingly difficult, I still go to the office five days a week to work with wonderful people." He continued, "I started aging late in life, but once it comes, aging is undeniable," showing a calm acceptance of the passage of time.
This letter marks Buffett's first official message since announcing his retirement as CEO. The industry interprets this as a signal marking the end of his management journey, which has lasted over 60 years. Buffett stated that he will continue to release a shareholder letter every Thanksgiving going forward.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
