Buffett redirects annual Berkshire donations from Gates to family foundations

Warren Buffett has excluded the Gates Foundation from his annual charitable stock donations, redirecting this year’s entire allocation to four family-linked foundations. The 95-year-old Berkshire Hathaway chairman made the decision after extensively reviewing the Microsoft co-founder’s past association with convicted sex offender Jeffrey Epstein.

"While it's distasteful, while he made mistakes, I made mistakes, hiring all kinds of people, or choosing friends, and then finding out later that, one way or other, they weren't what I thought they were," Buffett said in a television interview. "I found nothing in there that was beyond what I could picture myself doing." He emphasized that the choice was not a permanent rupture, noting that he and Gates remain in contact and recently spent three hours together in Omaha.

The shift represents a significant change in the flow of capital to the philanthropic organization. Since 2006, the Gates Foundation has been the primary recipient of Buffett’s annual Berkshire Hathaway stock gifts, receiving more than $47 billion in total. Gates responded with a statement expressing immeasurable gratitude for the unprecedented support that has helped save millions of lives.

For investors tracking Berkshire Hathaway's ownership structure, the redirection highlights a broader transition in how the conglomerate's largest individual shareholder will eventually exit his position. Buffett stated his goal is to dispose of all his Berkshire shares within approximately eight years, placing greater responsibility on his three children to manage the estate.

This year, Buffett is transferring 9 million Class B shares, valued at roughly $4.5 billion, to the Susan Thompson Buffett Foundation. His children’s respective charities, the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation, will each receive 1 million Class B shares worth just under $500 million apiece.

Buffett explained that he previously kept the Gates Foundation as the main recipient because his children were not ready to manage vast charitable sums. He noted that he has spent decades gradually preparing them for this role, telling them the wealth is theirs and it is their responsibility to distribute it well. The chairman also noted he is recovering well from recent leg surgery.