Warren Buffett is accelerating the transfer of wealth to children. $150 billion to be divided
In his letter, the “guru from Omaha” explained that the acceleration of the transfer of shares was due to his age and the desire for the property to go to family foundationsbefore their management is taken over by subsequent trustees.
He emphasized that intends to retain a significant portion of class “A” shares until Berkshire Hathaway shareholders gain full confidence in Greg Abel, who will replace him as CEO at the beginning of the new year. Buffett noted that his children and the company's management fully support this change, writes CNBC.
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The value of Buffett's stake in Berkshire Hathaway is approximately $150 billion. according to Bloomberg's latest valuation and is the company's largest shareholder. Most of this wealth consists of class “A” shares, the current price of which reaches PLN 751,000. $480 each. Recently, 1,800 shares of this class were converted into 2.7 million “B” shares and donated to four family foundations: the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard G. Buffett Foundation and the NoVo Foundation.
Generational change at Berkshire Hathaway
Buffett emphasized that the acceleration of donations does not mean he has changed his beliefs about Berkshire Hathaway's future. In his letter, he noted that he wanted shareholders to have time to get to know the new CEO and develop confidence in him, as he and his longtime business partner Charlie Munger, who died two years ago, did. Buffett expressed confidence that this level of trust should not take long, and his children and the company's management already fully support Greg Abel.
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In the letter, Buffett also addressed his health, admitting that although feels the effects of aging, still feels good and works in the office every day. He noted that despite his slower pace and difficulties with reading, he remains professionally active and is surrounded by a great team.
The future of Berkshire
Greg Abel, currently vice president of non-insurance operations, will take over from Buffett the responsibility of writing annual letters to Berkshire Hathaway shareholders. This tradition, started by Buffett in 1965, has become an important point of reference for investors around the world. Alone Buffett intends to continue writing Thanksgiving letters.
In one of the more personal parts of his letter, Buffett admitted that he was surprised by how good he felt after all these years. He pointed out that although he moves slower and reads more difficult, he still works five days a week surrounded by excellent colleagues, according to CNBC.
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Buffett devoted part of his letter to highlighting Berkshire Hathaway's stability. He recalled that since taking control of the company in 1965, he transformed it from a struggling textile factory into conglomerate worth $1 trillioncovering the insurance, railway, energy and consumer industries.
According to Buffett, Berkshire Hathaway was designed to survive even the most difficult periods and is exceptionally resilient to crises. He pointed out that the company had less chance of disaster than any other company he knew. Berkshire at the end of September had a record amount of USD 381.6 billion. in cashand investors treat the company as a safe haven in times of market uncertainty.
Financial results and challenges
Berkshire Hathaway's core business remains strong in the third quarter operating profit increased by 34%. However, Buffett admitted that the company's size is both an asset and a limitation. He pointed out that while Berkshire's companies have moderately better-than-average prospects, there will be plenty of companies that will outperform in a decade or two.
Berkshire Hathaway shares are up about 10% in 2025, outperforming many defensive stocks, although lagging the tech-sector-driven S&P 500 Index.
