Buffet stated in a letter earlier this week he planned to “give away 12,050,000 Class B shares of Berkshire Hathaway stock to five foundations. Five-sixths of the shares will be earmarked for The Bill & Melinda Gates Foundation, with other donations going to the Susan Thompson Buffett Foundation--named in honor of his late wife--and 350,000 shares for the three foundations run by each of his children” as reported on forbes.com.
Many thought Buffet was going to leave most of his fortune to his own Buffet foundation as did the majority of his wife’s estate, valued at $2.6 billion. His inheritance was not destined for his children either as he said in the past, “There's no reason why future generations of little Buffetts should command society just because they came from the right womb. Where's the justice in that?”
The donations will start with an immediate gift of around “$1.5 billion and add to it each summer with donations of 5% of the additional earmarked shares in Berkshire.” Interestingly the Buffet money is required to be used that year instead of sitting in the foundation for future use. This means the Gates Foundation will double it’s spending, considering in 2005 it spent $1.36 billion. Unless of course the Foundation decides to only spend the Buffet money.
There are enough nations in need of basic education, health care, shelter and food to help the Gates in their quest to spend billions of dollars on worthy causes.
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