The shares are set to be delivered on Monday.

Who Gets What

The biggest slice of the donation is headed to the Bill & Melinda Gates Foundation Trust, which will receive 9.4 million shares. The Susan Thompson Buffett Foundation, named after Buffett’s late wife, will get 943,384 shares. The remaining shares—660,366 each—will be split among the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation, all of which are associated with Buffett’s children.

A Life Committed to Giving

Buffett has long pledged to give away the vast majority of his wealth, and this move reinforces that commitment. In a statement, he reiterated that roughly 99.5% of his estate is earmarked for philanthropy, as outlined in his will.

“Nothing extraordinary has occurred at Berkshire,” Buffett wrote. “A very long runway, simple and generally sound decisions, the American tailwind and compounding effects produced my current wealth.”

Buffett made headlines last year when he announced that, after his death, donations to the Gates Foundation will stop, leaving his three children in charge of distributing the rest of his estate through their respective foundations.

Berkshire’s Stock Keeps Climbing

Berkshire Hathaway’s Class B shares, which are more affordable and widely held than the famously expensive Class A stock, closed Friday at $485.68. The company’s stock has gained 19.1% over the past year, outperforming the broader U.S. stock market’s 14.1% return (including dividends).

Buffett’s reputation as a value investor—buying strong companies at fair prices and avoiding hype-driven trends—has been central to both his success and the enduring growth of Berkshire Hathaway. Today, his fortune is estimated at $145 billion, nearly all of it tied up in the company he built.

Source: AP News – Warren Buffett announces $6 billion in donations to five foundations

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OMAHA, Neb. — In a move that left thousands of shareholders in stunned silence, Warren Buffett, one of the most iconic figures in global finance, announced Saturday he will retire from his role as CEO of Berkshire Hathaway at the end of this year.

The surprise announcement came at the very end of the company’s annual meeting in Omaha, where Buffett, 94, revealed he will formally recommend Vice Chairman Greg Abel as his successor.

“I think the time has arrived where Greg should become the chief executive officer of the company at year end,” Buffett said, ending a five-hour Q&A without fielding questions about his decision.

Passing the Torch to Greg Abel

Abel, who oversees all of Berkshire’s non-insurance businesses and has long been seen as Buffett’s successor, was reportedly caught off guard. Sitting beside Buffett on stage during the announcement, he had no advance warning.

Still, Abel returned to the stage later to lead the company’s formal business meeting and addressed the moment:

“I just want to say I couldn’t be more humbled and honored to be part of Berkshire as we go forward.”

Though Abel has quietly managed much of Berkshire’s vast empire behind the scenes, he’ll now take on a more public role — including overseeing the company’s insurance operations and investment strategy, two areas where Buffett’s influence has long loomed large.

Buffett Backs Abel, Keeps All His Shares

To reassure shareholders, Buffett pledged to leave his fortune fully invested in the company.

“I have no intention — zero — of selling one share of Berkshire Hathaway,” he said. “The decision to keep every share is an economic decision because I think the prospects of Berkshire will be better under Greg’s management than mine.”

Buffett’s commitment received a standing ovation from the 40,000-strong crowd — a fitting tribute to his six-decade leadership, during which Berkshire’s stock delivered a 19.9% annual return, nearly doubling the S&P 500’s performance.

Can Abel Fill Buffett’s Shoes?

While many investors express confidence in Abel’s leadership, they also recognize he won’t replicate Buffett’s legendary investment instincts.

“He’s had a long time alongside Warren and a chance to know the businesses,” said investment manager Omar Malik. “Will he allocate capital as dynamically as Warren? No. But I think he’ll do a fine job.”

Still, not everyone is fully convinced. Cole Smead of Smead Capital Management noted Buffett seemed less sharp at the meeting, suggesting the time was right to pass the baton — even if matching Buffett’s legacy will be a tall order.

“I think the challenge Abel’s going to have is, will anyone give him Buffett’s or Charlie Munger’s pass card? Not a chance in God’s name,” Smead said.

Buffett’s Warning on Tariffs and Trade Tensions

Earlier in the meeting, Buffett made headlines by criticizing former President Donald Trump’s trade policies, warning that weaponizing tariffs could backfire on the U.S. globally.

“It’s a big mistake in my view when you have 7.5 billion people who don’t like you very well, and you have 300 million who are crowing about how they have done,” he said.

He stressed that trade should foster peace and mutual prosperity, not global instability.

No Bargain Buys, Yet Cash Keeps Piling Up

Despite recent market fluctuations, Buffett said he sees no compelling investment opportunities at the moment. Berkshire is sitting on a massive $347.7 billion in cash, waiting for the right moment.

“This has not been a dramatic bear market,” Buffett said, downplaying recent volatility and referencing historical drops during the Great Depression as far more significant.

Investor Chris Bloomstran of Semper Augustus Investment Group added that market crises often create the best opportunities for Berkshire.

“Berkshire needs a crisis. I mean Berkshire thrives in crisis,” he said.

A Final Farewell to the Oracle of Omaha

This year’s shareholder gathering, which drew notable attendees including Hillary Clinton, now marks the end of an era. Buffett, known as the Oracle of Omaha, has spent a lifetime building not just a company, but a legacy rooted in patience, value investing, and long-term vision.

Longtime investor Devan Bisher, 72, who began buying Berkshire stock in the 1980s, summed up what many felt:

“It’s been a good train to ride,” he said. “And I’m going to stay with it.”

Source: AP News – Warren Buffett shocks shareholders by announcing his intention to retire at the end of the year

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Warren Buffett, in his annual letter to shareholders on Saturday, reflected on Berkshire Hathaway’s remarkable journey over the past 60 years. Since taking over a struggling New England textile company in 1965, Buffett has transformed it into a massive conglomerate with holdings spanning insurance, railroads, utilities, and retail. While celebrating Berkshire’s successes, he also acknowledged making mistakes along the way—though he provided few specific examples.

Greg Abel: The Future of Berkshire

Buffett reassured shareholders that his chosen successor, Greg Abel, is fully prepared to take the helm when the time comes. Highlighting Abel’s ability to act decisively on investment opportunities, Buffett wrote:

“We are impartial in our choice of equity vehicles, investing in either variety based upon where we can best deploy your (and my family’s) savings. Often, nothing looks compelling; very infrequently, we find ourselves knee-deep in opportunities. Greg has vividly shown his ability to act at such times.”

Berkshire’s Growing Cash Reserves

With Berkshire now holding a staggering $334.2 billion in cash—nearly double the $167.6 billion it held a year ago—Abel will have plenty of resources to deploy. The increase comes after Berkshire sold much of its Apple and Bank of America stock while continuing to generate significant cash flow from its diverse businesses, including:

• Geico Insurance
• BNSF Railroad
• Utility Companies
• Manufacturers and Retailers, such as Dairy Queen and See’s Candies

Recent Investments: Utilities, Truck Stops, and Japan

While Buffett has struggled to find major acquisitions in recent years, he did make several key moves in 2023:

• $3.9 billion to acquire full ownership of Berkshire’s utility business.
• $2.6 billion to purchase the remaining shares of the Pilot truck stop chain.
• Increased investment in five major Japanese conglomerates, bringing Berkshire’s six-year total investment in Japan to $13.8 billion, now valued at $23.5 billion.

No Plans for a Dividend

Despite its immense cash reserves, Buffett reaffirmed that Berkshire has no plans to offer a dividend. The company continues to prioritize reinvesting profits into new opportunities rather than returning cash to shareholders.

A Shorter Shareholder Meeting & Buffett’s Reflections

For the first time, Buffett announced that the annual shareholder meeting in May will be shorter, running from 8 a.m. to 1 p.m.—several hours less than usual. At 94 years old, Buffett also acknowledged using a cane to prevent falls, saying, “I am now officially in the age of precaution.”

Unlike the company’s 50th anniversary letter, where he and longtime partner Charlie Munger (who passed away in 2023) reflected deeply on Berkshire’s history, Buffett kept this year’s message relatively forward-looking.

From Humble Beginnings to Historic Success

Buffett recalled that when he took over in 1965, Berkshire paid zero corporate income tax, a sign of its struggling financial state. Fast forward to 2023, and Berkshire paid $26.8 billion in corporate taxes—the largest amount ever paid by a U.S. company, surpassing even trillion-dollar tech giants.

Berkshire’s stock tells a similar story of extraordinary growth:

• Buffett began buying Berkshire shares in 1962 for $7.60 each.
• Today, Class A shares trade at $718,750, making them the most expensive publicly traded stock in the world.
• The company also offers Class B shares at a more accessible $478.74.

A Special Anniversary Celebration

To commemorate Berkshire’s 60th anniversary, Buffett promised shareholders the opportunity to purchase a special edition book filled with untold stories and lessons from the company’s journey.

As Buffett celebrates six decades of success, his message to shareholders remains clear: Berkshire Hathaway is stronger than ever, and its future under Greg Abel looks just as promising.

Source

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