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Buffett Donates $3.17 Bn in Berkshire Stock

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Billionaire investor Warren Buffett donated more than $3 billion in Berkshire Hathaway (BRK-A

Berkshire Hathaway Inc
BRK-A
255,499.99
+0.04%

,BRK-B) stock this week as part of his 2006 pledge to give away all of his money.

In a press release the company said shares worth $3.17 billion went to the Bill & Melinda Gates Foundation, Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation. This donation marks the largest contribution by Buffett to charities since announcing the his goal more than a decade ago. With the current gift, more than 40% of his 2006 holdings – a total value of $27.54 billion – have been given to five foundations. (See more: How Warren Buffett made Berkshire Hathaway a World-beater)

The most recent donation is made up of 18.63 million Class B shares valued at $170.25 per share based on the closing price on Monday. Buffett, who is 86, now owns around 17% of Berkshire Hathaway. Of the five charities, the Gates Foundation is getting $2.42 billion, reported CNBC, noting the Gates are good friends with Buffett. The charities that get the donations typically sell the stock to bankroll their activities and to meet the billionaire investor’s desire to see the money he donates put to use. (See more: Berkshire Hits All-Time High.)

Back in 2006 when Buffett vowed to donate his fortune to the five charities, he gave $37 billion, his largest donation ever, to the Bill and Melinda Gates Foundation, which fights poverty and is focused on improving healthcare and education. The foundation gets the money upon his death. Buffett’s estate consists of Berkshire Hathaway stock that he plans on contributing directly to the foundation and cash that he is leaving for his heirs to keep invested in index funds. His contribution has given him profound influence in the Bill and Melinda Gates Foundation, and he maintains active involvement in the organization. He has a strong interest in philanthropy and in solving global health and educational problems. This interest led him to actively promote the foundation and encourage others to contribute, especially those with high-value estates.

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