Buffett halts Gates Foundation donations, shifts 10m shares to family
Warren Buffett is redirecting millions of Berkshire Hathaway shares to his children’s foundations instead of the Gates Foundation, a move driven by governance scrutiny that unfolds as the conglomerate's stock significantly underperforms the broader market.
Warren Buffett will distribute 10 million Class B shares of Berkshire Hathaway among four family-led foundations, marking the first time in two decades he has skipped his midyear donations to the Bill & Melinda Gates Foundation. The sudden halt to a long-standing philanthropic arrangement carries notable implications for both the charity sector and Berkshire shareholders.
The 95-year-old chairman is allocating 1 million shares each to the Sherwood Foundation, the Howard G. Buffett Foundation and the NoVo Foundation. These three entities are each run by one of his children. An additional 9 million shares will go to the Susan Thompson Buffett Foundation, named for his late wife.
Buffett excluded the Gates Foundation from this round of giving and from a list of organizations slated for future gifts. This pause follows the release of US Justice Department documents earlier this year that renewed scrutiny of Bill Gates’ past relationship with Jeffrey Epstein. The Gates Foundation is now reviewing its historical interactions with Epstein and its vetting policies, and Buffett is reportedly awaiting those results before committing further capital.
For market professionals, this reallocation of shares is unfolding against a backdrop of striking underperformance in Berkshire’s stock. Since reaching a historic high in May last year—immediately before Buffett announced he would step down as chief executive—the company's shares have declined 8%. Over that exact same period, the broader S&P 500 index has surged 32%.
The divergence highlights the market's uncertainty regarding the conglomerate's post-Buffett era. Despite the recent price lag, the billionaire retains a dominant position in the business. He currently owns 188,290 Class A shares and 1,162 Class B shares of Berkshire Hathaway.
Redirecting this volume of shares to his children's foundations consolidates family control over a vast portion of Berkshire's equity. For long-term investors, the decision effectively merges a major governance controversy at a peer charity with the complex succession mechanics of the world's most famous holding company.
