If Warren Buffett had invested similar funds as Elon Musk did in Tesla and SpaceX, he would currently have a net worth of about $67 billion more.
Warren Buffett's Breathtaking Philanthropy
The colossal success of Warren Buffett during his staggering six-decade reign atop Berkshire Hathaway Inc. isn't fully encapsulated by his $167 billion fortune. Instead, consider this: If the Oracle of Omaha had kept his stake, his net worth would have soared to a massive $400 billion, eclipsing Elon Musk's current standing as the world's wealthiest individual.
Over the past two decades, Buffett, now age 94, has given away Berkshire shares worth more than $60 billion at the time of donation. Today, those shares would be worth a staggering $230 billion, according to Bloomberg estimates.
To put it into perspective, Buffett's holding onto his stake would have granted him an additional $67 billion, dwarfing Musk's current fortune. But the shrewd investor has always been a firm believer in giving back.
"Warren has demonstrated through word and deed how to live an impactful and fulfilling life," said Seth Klarman, CEO of Baupost Group, one of many billionaires to offer emotional tributes after news that Buffett would be stepping down from running Berkshire by the end of the year.
While Buffett had long vowed his fortune would go to charity upon his death, his giving was modest for much of his career. His philanthropic foundation, established in the 1960s and later named after his late wife, Susan, received relatively modest donations. However, in 2006, Buffett made a dramatic shift, announcing his intention to donate 85% of his wealth, then estimated at around $44 billion.
He chose to donate most of these funds to the Gates Foundation, the philanthropic juggernaut helmed by his friend Bill Gates. The remaining portion was to be distributed among foundations established by him and his three children.
In a statement to Fortune at the time, Buffett stated, "I know what I want to do, and it makes sense to get going."
The Giving Pledge Initiative
Buffett is renowned for spearheading the Giving Pledge along with Bill and Melinda French Gates in 2010. This initiative exhorts other ultra-wealthy individuals to commit to donating at least half their wealth. Notable names who have signed up include Elon Musk, Mark Zuckerberg, and Larry Ellison, who joined the pledge with the following sentiment: "Warren Buffett personally asked me to write this letter."
In his letter announcing the Giving Pledge, Buffett pledged to donate more than 99% of his fortune to philanthropic causes during his lifetime or upon his death.
"My family and I will give up nothing we need or want by fulfilling this 99% pledge," he wrote. "In contrast, that remaining 99% can have a huge effect on the health and welfare of others."
Last year, Buffett detailed his plans for the remaining portion of his fortune after his demise. His three children, Howard, Peter, and Susie, will be responsible for donating the remaining shares, requiring unanimous agreement on every decision. Buffett confirmed that the Gates Foundation, whose board he resigned from in 2021, would no longer receive gifts upon his passing. Instead, Gates announced plans to double the foundation's giving and close it down by 2045.
Buffett remains strongly rooted in his humble Nebraska origins, spending his youth delivering papers and selling candy door-to-door to fund his fascination with the stock market and investing. He attended graduate school at Columbia University, where he studied under economist Ben Graham, the father of value investing.
Buffett began acquiring shares of Berkshire Hathaway, a textile manufacturer, in 1962, and transformed it into an acquisition vehicle for his bargain hunting. As his bets paid off, the share price skyrocketed, resulting in a return of more than 5,500,000%. Buffett briefly held the title of the world's richest person in 2008.
Buffett's investment strategy and lifestyle are similarly characterized by his frugality. His interests range from bridge and the ukulele to his home, a Dutch Colonial-style Omaha house he purchased in 1958. His empire boasts an extreme concentration, with more than 99.5% of his fortune tied to Berkshire shares.
It remains unclear how much non-philanthropic capital Buffett intends to leave his children. Upon her death in 2004, Susan left each child $10 million in her will, which Buffett described as the first significant gifts to his family. Buffett is a vocal critic of dynastic wealth, once stating, "These bequests reflected our belief that hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing."
(Except for the headline, this article has not been edited by our editorial staff, and is published from a syndicated feed.)
Warren Buffet's philanthropy transcends his vast fortune, as he has pledged to donate more than 99% of his wealth to charitable causes. His giving, which includes substantial investments in business areas like finance, wealth management, and personal finance, has inspired other billionaires to commit to the Giving Pledge initiative, committing to donating at least half their wealth.
Throughout his career, Warren Buffet has demonstrated a strong belief in investing not only for personal gain but also for the betterment of society, making significant contributions to various philanthropic causes, particularly in areas related to health and welfare.
