Warren Buffett gives away another $1.1B and plans for distributing his $147B fortune after his death

OMAHA, Neb. (AP) — Investor Warren Buffett renewed his Thanksgiving tradition of giving by announcing plans Monday to hand more than $1.1 billion of Berkshire Hathaway stock to four of his family's foundations, and he offered new details about who will be handing out the rest of his fortune after his death.

Buffett has said previously that his three kids will distribute his remaining $147.4 billion fortune in the 10 years after his death, but now he has also designated successors for them because it's possible that Buffett's children could die before giving it all away. He didn't identify the successors, but said his kids all know them and agree they would be good choices.

“Father time always wins. But he can be fickle – indeed unfair and even cruel – sometimes ending life at birth or soon thereafter while, at other times, waiting a century or so before paying a visit,” the 94-year-old Buffett said in a letter to his fellow shareholders. “To date, I’ve been very lucky, but, before long, he will get around to me. There is, however, a downside to my good fortune in avoiding his notice. The expected life span of my children has materially diminished since the 2006 pledge. They are now 71, 69 and 66.”

Buffett said he still has no interest in creating dynastic wealth in his family — a view shared by his first and current wives. He acknowledged giving Howard, Peter and Susie millions over the years, but he has long said he believes “hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing.”

The secret to building up such massive wealth over time has been the power of compounding interest and the steady growth of the Berkshire conglomerate Buffett leads through acquisitions and smart investments like buying billions of dollars of Apple shares as iPhone sales continued to drive growth in that company. Buffett never sold any of his Berkshire stock over the years and also resisted the trappings of wealth and never indulged in much — preferring instead to continue living in the same Omaha home he'd bought decades earlier and drive sensible luxury sedans about 20 blocks to work each day.

“As a family, we have had everything we needed or simply liked, but we have not sought enjoyment from the fact that others craved what we had,” he said.

If Buffett and his first wife had never given away any of their Berkshire shares, the family's fortune would be worth nearly $364 billion — easily making him the world's richest man — but Buffett said he had no regrets about his giving over the years. The family's giving began in earnest with the distribution of Susan Buffett's $3 billion estate after her death in 2004, but really took off when Warren Buffett announced plans in 2006 to make annual gifts to the foundations run by his kids along with the one he and his wife started, as well as the Bill & Melinda Gates Foundation.

Warren Buffett's giving to date has favored the Gates Foundation with $55 billion in stock because his friend Bill Gates already had his foundation set up and could handle huge gifts when Buffett started giving away his fortune. But Buffett has said his kids now have enough experience in philanthropy to handle the task and he plans to cut off his Gates Foundation donations after his death. Buffett always makes his main annual gifts to all five foundations every summer, but for several years now he has been giving additional Berkshire shares to his family's foundations at Thanksgiving.

Buffett reiterated Monday his advice to every parent to allow their families to read their will while they are still alive — like he has done — to make sure they have a chance to explain their decisions about how to distribute their belongings and answer their children's questions. Buffett said he and his longtime investing partner Charlie Munger, who died a year ago, “saw many families driven apart after the posthumous dictates of the will left beneficiaries confused and sometimes angry.”

Today, Buffett continues to lead Berkshire Hathaway as chairman and CEO and has no plans to retire although he has handed over most of the day-to-day managing duties for the conglomerates dozens of companies to others. That allows him to focus on his favorite activity of deciding where to invest Berkshire's billions. One of Buffett's deputies who oversees all the noninsurance companies now, Greg Abel, is set to take over as CEO after Buffett's death.

FILE - Warren Buffett, Chairman and CEO of Berkshire Hathaway, speaks during a game of bridge after the annual Berkshire Hathaway shareholders meeting in Omaha, Neb., on May 5, 2019. (AP Photo/Nati Harnik, File)

FILE - The children of Berkshire Hathaway Chairman and CEO Warren Buffett, from left, Howard Buffett, Susie Buffett, and Peter Buffett, pose for a photo at the CenturyLink Center exhibit hall in Omaha, Neb., May 1, 2015. (AP Photo/Nati Harnik, File)

CRANBERRY TOWNSHIP, Pa.--(BUSINESS WIRE)--Nov 25, 2024--

Westinghouse Electric Company and CORE POWER today announced the formalization of a cooperative agreement for the design and development of a floating nuclear power plant (FNPP) using the industry-leading eVinci™ microreactor.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20241125066795/en/

FNPPs are a game-changing approach to deploying nuclear energy to islands, ports, coastal communities and industry. These innovative power plants can be centrally manufactured and easily transported to operation sites, combining advanced nuclear technology with shipyard efficiency. As a highly transportable source of cost-competitive, reliable nuclear power, the eVinci microreactor is perfectly suited to FNPPs. The eVinci microreactor requires minimal maintenance and can operate for eight years at full power before refueling, allowing for reliable long-term power generation at almost any location.

“There’s no net-zero without nuclear. A long series of identical turnkey power plants using multiple installations of the Westinghouse eVinci microreactor delivered by sea, creates a real opportunity to scale nuclear as the perfect solution to meet the rapidly growing demand for clean, flexible and reliable electricity delivered on time and on budget,” said Mikal Bøe, CEO of CORE POWER. “Our unique partnership with Westinghouse is a game changer for how customers buy nuclear energy.”

Under the agreement, Westinghouse and CORE POWER will advance the design of a FNPP using the eVinci microreactor and its heat pipe technology. Based on more than 60 years of proven use, heat pipe technology improves reliability while providing a simple, non-pressurized method of passively transferring heat. Heat pipes in the eVinci microreactor transfer heat from the nuclear core to a power conversion system, eliminating the need for water cooling and the associated recirculation systems. In addition, the companies will collaborate to develop a regulatory approach to licensing FNPP systems.

“With this groundbreaking agreement, we will demonstrate the viability of the eVinci technology for innovative use cases where power is needed in remote locations or in areas with land limitations,” said Jon Ball, President of eVinci Technologies at Westinghouse. “We look forward to our partnership with CORE POWER, bringing the unique advantages of eVinci microreactors to maritime and coastal applications, potentially even paving the way for future disaster relief efforts.”

The eVinci microreactor builds on decades of industry-leading Westinghouse innovation to bring carbon-free, safe and scalable energy wherever it is needed for a variety of applications, including providing reliable electricity and heating for remote communities, universities, mining operations, industrial centers, data centers, and defense facilities, and soon the lunar surface and beyond. The resilient eVinci microreactor has very few moving parts, working essentially as a battery, providing the versatility for power systems ranging from several kilowatts to 5 megawatts of electricity, delivered 24 hours a day, 7 days a week for eight-plus years without refueling. It can also produce high temperature heat suitable for industrial applications, including alternative fuel production such as hydrogen, and has the flexibility to balance renewable output. The technology is factory-built and assembled before it is shipped in a container.

Westinghouse Electric Company is shaping the future of carbon-free energy by providing safe, innovative nuclear and other clean power technologies and services globally. Westinghouse supplied the world’s first commercial pressurized water reactor in 1957 and the company’s technology is the basis for nearly one-half of the world's operating nuclear plants. Over 135 years of innovation makes Westinghouse the preferred partner for advanced technologies covering the complete nuclear energy life cycle. For more information, visit www.westinghousenuclear.com and follow us on Facebook, LinkedIn and X.

CORE POWER is building a Maritime Civil Nuclear Program in the OECD through scalable new nuclear technology solutions for maritime and heavy industries. CORE POWER's mission is to dramatically improve energy efficiency and local energy security by delivering investable, floating nuclear energy solutions from shipyard manufacturing on time and on budget. CORE POWER is present across the OECD, with offices in London, Washington DC, and Tokyo. For more information, please visit https://corepower.energy and follow us on LinkedIn.

Westinghouse and CORE POWER are partnering for the design and development of a floating nuclear power plant using the industry-leading eVinci™ microreactor. Floating Nuclear Power Plant Image © 2024 by CORE POWER. (Photo: Business Wire)