Making billions is quite an accomplishment. Giving that money away is probably quite tough to do. But that’s exactly what billionaire investor Warren Buffett is doing.
Let’s take a look at how much he’s giving away to charity and why he’s doing it.
Who is Warren Buffett?
An original believer in value investing, Warren Buffett has made a lot of money through being a smart investor. The wealth he’s amassed has made him one of the richest people in the world. A lot of the wealth he’s created has been as a major shareholder in his investment company Berkshire Hathaway.
But now, at the ripe old age of 90, Buffett has decided to give away a lot of the money that he’s built up over his lifetime.
Why is Warren Buffett giving away money?
In a recent statement, Buffett explained his reasons for giving away a lot of his wealth: “Over many decades I have accumulated an almost incomprehensible sum simply by doing what I love to do. I’ve made no sacrifice nor has my family.
“Compound interest, a long runway, wonderful associates and our incredible country have simply worked their magic. Society has a use for my money; I don’t.”
This isn’t the first time he’s given away a big chunk of money in the form of Berkshire Hathaway shares. He’s one of around 200 billionaires who signed ‘The Giving Pledge’. These billionaires stated that they would donate huge amounts of their wealth.
In 2006, Buffett revealed he would give away all of his shares, which is equal to 99% of his net worth.
How much is he giving away?
Buffett’s donation to charities is equal to roughly £2.9 billion worth of Berkshire Hathaway shares.
Back in 2006, Warren Buffett owned a total of 474,998 shares in the business. This recent donation takes him midway to his goal of giving away all of his shares, leaving him with 238,624 shares.
So we can expect this philanthropy to continue as he goes through the motions of relieving himself of all his wealth and stock over the coming years.
Who is he giving the money to?
The donation of stock will be going towards five foundations:
- Bill & Melinda Gates Foundation
- Susan Thompson Buffett Foundation
- Sherwood Foundation
- Howard G. Buffett Foundation
- NoVo Foundation
How can I follow in the footsteps of Warren Buffett?
Giving away a lot of money is a noble act. But in order to do something like this, you first need to build the wealth to give away!
One of the best ways of creating multi-generational wealth is through investing. Following Buffett’s example, you can use a share dealing account to invest in solid businesses that you think will be around for decades to come.
There are plenty of different ways to invest. All investing carries risk, but some methods are riskier than others. Taking a long-term investing approach, as Buffett did, gives you a great chance of growing your portfolio so that you can be just as charitable one day.
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