Warren Buffett, the 95-year-old chairman of Berkshire Hathaway Inc., announced that he plans to dispose of his entire stake in the company within about eight years by donating his remaining shares to four charitable foundations.
Buffett converted 8,000 Class A shares into 12 million Class B shares with the express purpose of making grants to charity. The converted shares will be distributed as follows: the Sherwood Foundation, the Howard G. Buffett Foundation and the NoVo Foundation will each receive 1 million Class B shares, while the Susan Thompson Buffett Foundation will receive 9 million Class B shares.
Formalizing the timeline for the transfers, Buffett said, in his words, "My goal is to dispose of all of my Berkshire shares within about eight years." He added that he has "every hope that the three of them are able to carry out the disposal of my shares by December 31, 2034."
"Of course, mortality is unpredictable, but my remaining shares will be donated to the four foundations one way or the other by December 31, 2034," Buffett said.
At present, Buffett holds 188,290 Class A shares and 1,162 Class B shares of Berkshire Hathaway. He also described how the grants will evolve over time: the three foundations managed by his children will receive annual increases in their grants, while donations to the Susan Thompson Buffett Foundation will rise at a somewhat greater rate.
Market reaction to the announcement was muted in early trading. Berkshire Hathaway Class B shares traded roughly 0.5% flat in pre-market trading on the same day the plan was disclosed.
This plan sets a clear timetable for the redistribution of Buffett's personal holdings through philanthropic vehicles and specifies both the immediate conversions performed to facilitate that plan and the intended pattern of future grant increases to the named foundations.
- Allocation details - 12 million Class B shares were created by converting 8,000 Class A shares; 1 million Class B shares each to Sherwood, Howard G. Buffett and NoVo foundations; 9 million Class B shares to the Susan Thompson Buffett Foundation.
- Timeline - Buffett aims to have his remaining shares donated to the four foundations by December 31, 2034.
- Holdings - Following the conversion, Buffett's personal holdings are 188,290 Class A shares and 1,162 Class B shares.
The announcement frames a multiyear program of donations and share disposals tied to specific charitable recipients and a definitive end date for the transfers. It also underscores two operational elements: the conversion of Class A to Class B shares to facilitate the donations and the differentiated growth rates Buffett described for grants to the children-managed foundations versus the foundation named for his late wife.