Warren Buffett to give away the fortune to his children’s foundations while supporting Abel’s successor
Warren Buffett unveiled a plan to “accelerate” the pace of giving away his $149 billion fortune to his children’s foundations, while still counting on the short term that Berkshire Hathaway shareholders are gaining confidence in incoming CEO Greg Abel.
In a Thanksgiving letter that will become an annual tradition, Buffett said he needed to speed up the payment of his Berkshire stock to his three children’s foundations because of their own advanced age and that doing so would “increase the likelihood that they will dispose of what will be essentially my entire estate before being replaced by replacement trustees.”
Abel, 63, is expected to take over from Buffett, 95, as Berkshire’s chief executive early in the new year, with the “Oracle of Omaha” remaining as chairman.
“I would like to retain a significant amount of ‘A’ stock until Berkshire shareholders develop the comfort with Greg that Charlie and I have long enjoyed,” Buffett wrote, referring to longtime Berkshire vice chairman and beloved business partner Charlie Munger, who died two years ago.
“That level of confidence shouldn’t last long. My kids are already 100% behind Greg, as are the Berkshire directors,” Buffett said.
Buffett owns Berkshire worth about $149 billion based on shares held at the end of the second quarter, making him by far the largest shareholder. Most of his wealth is in the original A shares, which trade for around $751,480 per share.
He said 1,800 of those Berkshire A shares were converted into 2.7 million B shares and given Monday to four family foundations: The Susan Thompson Buffett Foundation, The Sherwood Foundation, The Howard G. Buffett Foundation and the NoVo Foundation. This gift is worth more than $1.3 billion.
“The acceleration of my lifetime gifts to my children’s foundations in no way reflects any change in my views about Berkshire’s prospects,” Buffett added.
The remarks represent Buffett’s first major communication since announcing plans to step down as CEO, signaling the end of six decades that have made him a household name and one of the most successful investors in history.
“As the British would say, ‘I’m going low.’…sort of,” Buffett wrote in the letter.
“I generally feel good”
Abel, currently the non-insurance company’s vice chairman, will take over writing Berkshire’s annual shareholder letters — a tradition Buffett started in 1965 that has become essential reading on Wall Street — while Buffett said he will continue that message of thanksgiving.
In one of the most personal passages of the letter, Buffett provided rare information about his health.
“To my surprise, I generally feel good. Even though I’m moving slowly and reading with increasing difficulty, I’m in the office five days a week working with wonderful people,” he wrote. “I aged late… but once it shows up, there’s no denying it.
Berkshire Fort
Since taking control of Berkshire in 1965, Buffett has transformed the struggling textile mill into a $1 trillion conglomerate spanning insurance, railroads, utilities and consumer brands.
He devoted part of his letter to reaffirming Berkshire’s resilience, saying it is designed to withstand almost any economic environment.
“Berkshire has less chance of a devastating disaster than any other business I know,” he said.
Berkshire held a record $381.6 billion in cash at the end of September, underscoring its unmatched balance sheet and cautious investment approach. It has also sold shares for 12 straight quarters, reflecting Buffett’s caution in a highly valued market.
The company’s core businesses remain strong, and operating profit jumped 34% in the third quarter. Still, Buffett acknowledged that Berkshire’s sheer scale has become both its strength and its limitation.
“Overall, Berkshire’s businesses have slightly better than average prospects, led by a few uncorrelated and sizeable gems. However, in a decade or two, there will be many companies that have outperformed Berkshire; our size is taking its toll,” he wrote.
BerkshireThe company’s shares are up about 10% in 2025, outperforming many defensive names, but trailing the S&P 500 amid the tech boom.
“Our stock price is going to be volatile, sometimes going down 50% or so, which has happened three times in 60 years under current management,” Buffett said. “Don’t despair, America will come back and so will Berkshire stock.”
— With a report from Becky Quick.