With $150 billion in personal wealth, Warren Buffett presented a compelling argument against establishing “dynastic” riches when he gave $1.1 billion in Berkshire Hathaway stock to four family foundations and appointed three independent trustees to manage his generosity after his children.
The 94-year-old renowned investor has long promised to donate 99 percent of the riches he amassed at Berkshire, the Omaha-based conglomerate he began managing in 1965, rather than passing on a sizable legacy to his three children.
Family wealth dynasties, in Buffett’s opinion, may have unfavourable effects like impeding human development and making relationships more difficult. In the meanwhile, they also cause uncertainty in society because it is unpredictable how future generations would decide to divide such wealth.
In a long letter delivered Monday, Buffett stated, “I have never wanted to establish a dynasty or pursue any plan that extended beyond the children.” “I have great faith in all three of them and know them well.
The next generation is a different story. Who can predict how future generations would prioritise, think, and be faithful when it comes to distributing great wealth in what may be a very different charitable environment?
Source (CNBC)
