Warren Buffett to Increase Giving to Children's Foundations: Supports Successor Greg Abel

Warren Buffett, the 95-year-old chairman of Berkshire Hathaway, has announced plans to speed up the distribution of his $149 billion fortune to his children’s foundations while continuing his support for incoming CEO Greg Abel. This move ensures his wealth will be in active philanthropic use and helps build investor confidence in Berkshire’s next chapter.

Buffett Plans Faster Giving Amid Leadership Change

In his Thanksgiving letter, Buffett revealed that the ageing of his children prompted him to fast-track stock transfers to their foundations. He plans to distribute a major portion of his Berkshire Hathaway shares in the short term, while holding on to a significant number of Class A shares until shareholders gain comfort with CEO-in-waiting Greg Abel. 

The donation of 1,800 Class A shares, converted into 27,00,000 B shares and valued at over $1.3 billion, was made to four family-led foundations, including the Susan Thompson Buffett Foundation and the NoVo Foundation.

Continued Commitment to Greg Abel’s Leadership

Buffett reaffirmed strong support for Greg Abel, currently Vice Chairman for non-insurance operations. He mentioned that his children and Berkshire board members are already fully behind Abel’s leadership. By retaining shares for a brief period, Buffett aims to provide a smooth leadership handover and extend investor confidence.

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Update on Buffett’s Health and Daily Role

Offering a rare look into his well-being, Buffett shared he is in relatively good health despite slowing down. He maintains a steady 5-day workweek and remains actively engaged in Berkshire operations. His new annual Thanksgiving letters will continue alongside the traditional shareholder letters that Abel will now author.

Berkshire Remains Financially Robust

Buffett spoke of Berkshire’s enduring strength, holding $3,81,600 crore in cash as of September and maintaining a strategy to manage risk skillfully. He acknowledged, however, that its massive size can limit growth potential. Berkshire’s operating profit grew 34% in Q3, showing underlying resilience even as its stock modestly lags broader indices in a tech-driven market.

Conclusion

Warren Buffett’s increased philanthropic efforts and strategic succession planning underline a thoughtful transition at Berkshire Hathaway. By accelerating stock donations and affirming faith in Greg Abel, Buffett is securing his legacy while ensuring Berkshire’s future remains in capable hands.

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