A recent donation by Warren Buffett to five foundations raises his total charitable contribution to more than $50 billion – significantly higher than his entire net worth in 2006 when he first announced these grants. The 92-year-old legendary investor said Thursday that he had converted over 9,000 Berkshire Class A shares into B shares to donate 13.7 million B shares to five foundations. A total of 10.5 million shares were delivered to the Bill & Melinda Gates Foundation Trust. In addition, 1.05 million shares were donated to the Susan Thompson Buffett Foundation, named for his first wife, who died in 2004. A further 2.2 million shares were divided equally among the three foundations run by his children: the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation. As of 1:30 p.m. ET, the B shares were worth about $336.
The “Oracle of Omaha” said the schedule for annual grants was made on June 26, 2006, when he owned $43 billion of Berkshire A shares, representing more than 98% of his net worth. Buffett pledged in a 2006 letter to make annual gifts of Berkshire B shares throughout his lifetime to benefit the Bill & Melinda Gates Foundation. “During the following 17 years, I have neither bought nor sold any A or B shares nor do I intend to do so. The five foundations have received Berkshire B shares that had a value when received of about $50 billion, substantially more than my entire net worth in 2006,” Buffett said. “I have no debts and my remaining A shares are worth about $112 billion, well over 99% of my net worth.” On Thanksgiving eve last year, Buffett donated over $750 million to his four family foundations as an “ultimate endorsement” of his children. Buffett plans to distribute his Berkshire shares through annual gifts 10 years after settling his estate. After this year’s donation, Buffett now owns 218,287 A shares and 344 B shares. “Nothing extraordinary has occurred at Berkshire; a very long runway, simple and generally sound decisions, the American tailwind and compounding effects produced my current wealth,” Buffett said. “My will provides that more than 99% of my estate is destined for philanthropic usage.” Omaha-based conglomerate, which has businesses ranging from insurance to railroads, utilities to energy and retail, is now worth $730 billion.