Warren Buffett to step up giving away fortune to his children’s foundations, while supporting successor Abel
Warren Buffett has laid out a plan to “accelerate” the pace at which he gives his $149 billion estate to his children’s trusts; but still allowed permission to be granted for a short period of time. Berkshire Hathaway Shareholders have confidence in new CEO Greg Abel.
In what would become an annual tradition, Buffett said in his Thanksgiving letter that he had to expedite the distribution of Berkshire shares to three children’s trusts because of their advanced age and that by doing so “it would increase the likelihood that they will dispose of my entire estate before alternative trustees replace them.”
Abel, 63, will take over as chairman of the “Oracle of Omaha” at the beginning of the new year, replacing 95-year-old Buffett as Berkshire CEO.
“I would like to hold on to a significant amount of ‘A’ shares until Berkshire shareholders enjoy the comforts that Greg and Charlie and I have long enjoyed,” Buffett wrote, referring to Charlie Munger, a longtime Berkshire Vice Chairman and valued business partner who died two years ago.
“This level of trust shouldn’t last long. My kids are already 100% behind Greg and the Berkshire executives,” Buffett said.
Buffett owns Berkshire worth about $149 billion based on shares he held at the end of the second quarter, making him by far the largest shareholder. The bulk of his wealth consists of original A shares, which trade for about $751,480 per share.
Berkshire said 1,800 of its A shares were converted into 2.7 million B shares and awarded Monday to four family trusts: the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard G. Buffett Foundation and the NoVo Foundation.
“The acceleration of my lifetime giving to my children’s foundations in no way reflects any change in my views on Berkshire’s future,” Buffett added.
The memo marks Buffett’s first major communication since announcing plans to step down as CEO and signals the end of a six-decade run that has made him one of the most successful investors in history.
“As the British say, I ‘keep quiet’…sort of,” Buffett wrote in his letter.
‘I Generally Feel Good’
While Abel, currently vice president of non-insurance operations, will take over writing Berkshire’s annual shareholder letters — a tradition Buffett started in 1965 that has become essential reading on Wall Street — Buffett said he will continue his Thanksgiving message.
In one of the letter’s most personal passages, Buffett gave a rare update on his health.
“Surprisingly, I feel good overall. Although I move slowly and can read with increasing difficulty, I work in the office five days a week with great people,” he wrote. “I’m late in getting old… but once it’s out there, it’s undeniable.”
Berkshire Castle
Since taking control of Berkshire in 1965, Buffett has transformed a struggling textile mill into a $1 trillion conglomerate that includes insurance, railroads, utilities and consumer brands.
He devoted part of his letter to reaffirming Berkshire’s resilience, saying it was designed to withstand nearly any economic environment.
“Berkshire has less chance of facing a devastating disaster than any other business I know,” he said.
Berkshire had a record $381.6 billion in cash at the end of September, underscoring its unique balance sheet and cautious investment approach. Berkshire has also been selling shares for 12 consecutive quarters, suggesting Buffett is being cautious in a highly valued market.
The company’s core business remains strong, with operating profit rising 34% in the third quarter. Still, Buffett acknowledged that Berkshire’s size has become both its strength and limitation.
“Overall, Berkshire’s businesses have slightly better-than-average prospects, led by a few unrelated and fairly large gems. But there will be many companies that outperform Berkshire a decade or two from now; our size pays the price,” he wrote.
BerkshireIts shares are up about 10% in 2025, outpacing many defenders but lagging the S&P 500 amid a tech-driven rally.
“Our stock prices will move capriciously and occasionally fall by around 50 percent, as has happened three times in 60 years under the current administration,” Buffett said. “Don’t despair; America will come back, and so will Berkshire stocks.”
— Reported by Becky Fast.
