Warren Buffet, the chief executive officer and the chairman of Berkshire Hathaway, saw a significant surge in his wealth when his shares increased by 29%, a boost of $115.42/share. This is possibly the reason why he decided to revise the annual contributions that he makes to the Bill Gates Foundation. This time, he made a donation amounting to $2 billion. This has surpassed his $1.8 billion record, which was his contribution to the foundation back in 2008. Bill Gates, the world’s 2nd richest man and also the Microsoft Corp. founder, is a close friend of Buffet. He was the one who inspired Buffet to get into philanthropy, through his and his wife Melinda Gates’ foundation.
The donation that billionaire investor Buffet has made to the Bill & Melinda Gates Foundation this year comes in the form of around $17.5 million shares of stock. These shares are from his company Berkshire Hathaway Inc. William Alden of DealBook reported that these stocks are valued at about U.S. $2 billion.
A Brief Overview on Warren Buffet
Warren Edward Buffet is an internationally acclaimed business magnate born in Omaha, Nebraska. Aside from this, he is also best known for being a philanthropist and an investor. The 82-year old businessman is considered by many as the most successful investor today. Buffet is the chairman, CEO, and the primary shareholder of Berkshire Hathaway. His name also consistently appears in the lists of the wealthiest people in the world. In fact, in 2008, he was the recipient of the title of being the world’s wealthiest person. Though his ranking was pushed down to 3rd in 2011, he is still nonetheless one of the richest people in the world.
In 2012, Time Magazine named Warren Buffet as one of the world’s most influential people. He also has a lot of nicknames, some of the most popular being the ‘Wizard of Omaha’, the ‘Sage of Omaha’, and the ‘Oracle of Omaha’. He is known for his adherence to the philosophy of value investing. While Buffet has immense wealth under his name, he is still known for living a frugal lifestyle. Around 99% of his fortune has been given away to many philanthropic causes, the major one being the Gates Foundation.
In a nutshell, Buffet is known for his great views on philanthropy and on accumulating wealth. The contributions that he has made in the past and that he says he will be making for the rest of his years have truly helped the poor all over the world.
The Bill & Melinda Gates Foundation
The Bill & Melinda Gates Foundation, also commonly referred to simply as the Gates Foundation or the B&MGF, is the world’s largest transparently operated foundation. Its founders are Bill Gates, who is also the founder of Microsoft Corp., and his wife, Melinda Gates. The primary goals of the foundation are to reduce extreme poverty while also enhancing health care and related services. These goals are not limited to the United States; it aims to help people from all over the world. In America, the aim of the foundation is to expand opportunities in terms of education and also grant more people with access to information technology.
There are three key people who control the Seattle, Washington-based foundation. As mentioned above, Bill and Melinda Gates are two of them. The third is none other than Warren Buffet. As of the 30th of September, 2012, the foundation’s endowment totaled to U.S. $36.2 billion. The scale and the reach of the foundation, as well as its methods of seeking business techniques, have made it one of the leaders in the revolution of philanthro-capitalism. In fact, in 2007, its three founders were considered to be some of the most generous American philanthropists.
Warren Buffet and His Significant Contributions
Of the five beneficiaries of Berkshire shares, the Bill & Melinda Gates Foundation receives the largest piece of the pie. The other foundations were the recipients of a little less than two million shares. These other foundations include the Susan Thompson Buffet Foundation, NoVo Foundation, Sherwood Foundation, and the Howard G. Buffet Foundation. All of these other foundations have been started by Warren Buffet himself, together with his three children.
Buffet has contributed Class B shares amounting to around $1.75 million to the Susan Thompson Buffet Foundation, which supports education among many other causes. This particular foundation has been named after his late wife. Around 1.22 million shares was also donated to the NoVo Foundation, which is being managed by his own son Peter together with his wife; the Sherwood Foundation; and the Howard G. Buffet Foundation, which he named after his son.
Warren Buffet makes such significant contributions to all of these foundations every year. He has pledged to contribute to all of these five charities, organizations that are focused on reducing the level of poverty from all around the world. Seven years ago, it was reported that Buffet will be contributing approximately $31 billion to the Gates Foundation. He also stated that the majority of his wealth would go towards the five foundations that he started with his children. Last year, Buffet also said that he would be increasing his annual contributions to the charities that he founded with his children because of how greatly he appreciates the things that they have done and accomplished.
Warren Buffet and His Net Worth
According to Forbes, the total net worth of Warren Buffet is around $53.5 billion. This was in March of this year. This net worth places him, again, on the list of the wealthiest people in the world. In fact, Buffet has been ranked as the world’s third wealthiest man on the Bloomberg Billionaire Index. Bill Gates has received the first spot in the same list.
Warren Buffet and his good friend Bill Gates have always joined forces in striving hard to extend help to the less fortunate and to the needy, a proof of which is the Giving Pledge. This encourages other extremely wealthy Americans to make contributions to foundations and organizations. Investors across the globe have given their pledges to make large donations to charity, such as the activist investor Bill Ackman, together with his wife Karen. Others who have also pledged include the Larry Ellison of the Oracle Corporation and Mark Zuckerberg of Facebook Inc.
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