That is why Warren Buffett who has amassed a personal fortune of $150 billion has made a strong case for preventing the creation of “dynastic” wealth. He named three independent trustees to oversee his philanthropy after his children and donated an additional $1.1 billion in Berkshire Hathaway stock to four family foundations.
Instead of leaving a huge inheritance to his three children, the 94 year old legendary investor has long pledged to give 99% of the fortune he’s generated at Berkshire, the conglomerate he’s headed since 1965 in Omaha, Nebraska.
According to Buffett, inordinate family wealth dynasties are dangerous, as they could thwart the development of the individual and complicate family relationships. They also bring about social uncertainties; for no one knows how future generations will decide to manage such wealth.
“I have never intended to create a dynasty or to implement any plan that extends beyond my children,” Buffett stated in an extensive letter on Monday. “I have complete trust in my three children. However, future generations present a different challenge. Who can predict the priorities, intelligence, and commitment of successive generations in managing the distribution of significant wealth in what may be a vastly altered philanthropic environment?”
Successor Trustees Appointed
Warren Buffett, nicknamed the “Oracle of Omaha,” owns about 37.6% of Berkshire Hathaway Class A stock, has said the accumulated assets may take longer to distribute than his children are going to live to see. He has named three trustees for his charitable trust to possibly distribute his built up wealth beyond his children. Today, the ages of Buffett’s children are 71, 69, and 66 years.
“Three successor trustees have been named. Each is known to my children and is a logical choice for all of us. They also are somewhat younger than my children,” Buffett said. “However, these successors are standing by. I hope indeed, I expect that Susie, Howie and Peter will be distributing all of my estate themselves.”
The names of the three trustees are not being disclosed.
In 2006, Buffett began making annual gifts to four family foundations. He said that over time he has developed an extraordinary confidence in his children’s management skills and philanthropic goals.
“The period from 2006 to 2024 has allowed me to witness each of my children in action, and they have gained significant insights into large scale philanthropy and human behavior,” he remarked. “They appreciate financial security, yet they are not overly focused on wealth. Their mother, from whom they inherited these values, would be immensely proud of them, as am I.”
Berkshire Hathaway, which crossed the $1 trillion market capitalization mark this year, has a wide-ranging collection of established businesses, which include its flagship Geico insurance, BNSF Railway, and consumer brands Dairy Queen and See’s Candies.
