Berkshire Hathaway News Release (Nov 2023)
Warren Buffett's Thanksgiving 2023 donation to family foundations
Berkshire Hathaway News Release (November 21, 2023)
Author: Warren E. Buffett Published: November 21, 2023 Source: Berkshire Hathaway
Overview
Warren Buffett announced the conversion of 1,600 Berkshire A shares into 2,400,000 B shares, donated to four family foundations. This repeated his Thanksgiving 2022 donation and was part of his 2006 lifetime pledge commitment.
The Donation
| Foundation | Shares Received |
|---|---|
| Susan Thompson Buffett Foundation | 1,500,000 |
| Sherwood Foundation | 300,000 |
| Howard G. Buffett Foundation | 300,000 |
| NoVo Foundation | 300,000 |
Key Themes
On Dynastic Wealth
"My three children, along with their father, have a common belief that dynastic wealth, though both legal and common in much of the world including the United States, is not desirable."
The Ovarian Lottery
"The United States is exhibit A for that belief, and the four of us feel lucky that we beat very long odds when we were born in the U.S."
On Capitalism
"We also agree that capitalism – whatever its weaknesses, including the vast disparities in wealth and political influence that it delivers somewhat capriciously to its citizens – has worked wonders and continues to work wonders."
On Wealth and Wisdom
"We have had many opportunities to observe that being rich does not make you either wise or evil."
Succession Planning
Buffett addressed Berkshire's future post-death:
"We have the right CEO to succeed me and the right Board of Directors as well. Both are needed."
"Berkshire – one of the largest and most diversified companies in the world – will inevitably encounter human errors in judgment and behavior... But these mistakes are unlikely to be serious at Berkshire and will be acknowledged and corrected."
The Testamentary Trust
Key provisions outlined:
- Three children as unanimous trustees — All decisions require consensus
- Successors must be designated — Due to mortality's random nature
- Self-liquidating after ~10 years
- Lean staff operation
- Open book — No hidden trusts or foreign entities; simple will available at Douglas County Courthouse
Historical Context
Buffett at 93 reflected on his situation:
"At 93, I feel good but fully realize I am playing in extra innings."
This followed his 2006 pledges, available at berkshirehathaway.com, which include conditions recipients must continue to meet.
Related Concepts
Source
Warren E. Buffett, Berkshire Hathaway News Release, November 21, 2023.