Warren Buffett announced plans to donate over $1.1 billion of Berkshire Hathaway stock to four family foundations this year, continuing his annual tradition of giving away his $147 billion fortune.
Buffet shared how his wealth–accumulated over time due to compounding interest on billions of dollars of investments, like the Apple shares he has long owned–will be distributed after his death, reported the Associated Press.
Previously, Buffett planned for his three children, Howard, Peter, and Susie, to manage the disbursement over a 10-year period, but now he has appointed successors in case they pass away before completing the task.
"To date, I've been very lucky, but, before long, he will get around to me," he wrote in an official statement to shareholders published in the Financial Times. "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 emphasized the importance of philanthropy and stated he does not aim to create "dynastic wealth for his children," a view shared by his first and current wives.
Buffet's largess will reduce his Berkshire Hathaway Class A shares to a 56.6 percent decrease since his 2006 donations, per his statement.
The 94-year-old believes that "hugely wealthy parents should leave their children enough so they can do anything but not enough that they can do nothing."
Buffett also urged parents to make their wills transparent while they are alive to avoid confusion and conflict amongst their offspring.
Currently, Buffet continues to lead Berkshire Hathaway. He has selected Greg Abel to be appointed as his successor as the chief executive officer upon his passing.
In August, the financial guru sold $845 million in Bank of America stock which netted him $7 billion in sales.
November marked Buffet's sixth year in a row of not buying back shares of Berkshire Hathaway despite having a $320 billion cash pile.
Berkshire Hathaway is the first non-tech company in the United States to hit a $1 trillion market valuation.
