Berkshire Hathaway CEO Warren Buffett is famed not only for his wildly successful investments but also for his philanthropic efforts—a practice his children are tasked with continuing.
The ‘Oracle of Omaha’ confirmed this summer that his $144 billion fortune would be transferred to a charitable trust that his three children would oversee: Susan, Howard, and Peter.
But 94-year-old Buffett’s middle child, Howard, says gifting money isn’t as easy as it might seem—particularly if one wants the funds to have a meaningful impact.
While overseeing a multi-billion fund tasked with making the world a better place might seem like an enviable task, Buffett has long warned philanthropy is no easy thing.
It’s an opinion his children can now appreciate.
Howard Buffett told the Associated Press last week: “It’s not so easy to give away money if you want to do it smart, if you want to be intelligent about it.”
The 69-year-old Buffett junior said he couldn’t yet give specifics about which causes the trio would focus their efforts on, but they would make those decisions quickly when they take on the task.
“I can tell you, we’ll sit down in a room when the time comes, and we’ll get it figured out pretty quickly,” he added.
While family-run organizations can often present challenges in high-powered households, the businessman who farms his own land in Illinois added that partnering with his siblings will make their work more successful.
“What this is going to do is we’re going to bring all of our collective experience together,” he added, per AP.
“Somebody is going to spend that money. Somebody is going to give that money away. So, I would rather do that with my brother and sister and do it together, as a partnership, than see it done any other way.”
While the siblings are preparing themselves to take on the challenge, the younger Buffett added his father is still in good health.
He said Buffett senior is still as sharp as ever, adding: “It’s pretty amazing that he’s giving us this opportunity.”
The Gates question
The creation of the new foundation led by the Buffett children signals a shift in the sands for another massive philanthropic player: The Bill and Melinda Gates Foundation.
Over the course of almost two decades, Buffett has donated nearly $40 billion to the organization launched by the Microsoft co-founder and his ex-wife.
But in an interview with the Wall Street Journal published this summer, Buffett said the Gates Foundation “has no money coming after my death.”
The relationship between the billionaires appears not to be intact in the wake of the news.
Gates told CNBC earlier this month that Buffett is a friend and added that he hopes to continue working into his 90s like the Berkshire CEO.
The alteration to Buffett’s will also marks a change in the donations given to the trusts established in connection with his family.
Instead of continuing to donate to the Susan Thompson Buffett Foundation (named after his wife), the Sherwood Foundation, the Howard G. Buffett Foundation, and the NoVo Foundation—three charities run by his children—Buffett will put the money into an overarching fund.
The famed investor has seemingly been impressed by the work of his children, and has stipulated the beneficiaries of the new trust must be agreed upon by all three of his offspring.
