Warren Buffett plans to donate entire Berkshire Hathaway stake by 2034

Warren Buffett plans to dispose of his entire Berkshire Hathaway stake within about eight years through donations to four charitable foundations, Bloomberg reported on Tuesday. The 95-year-old Berkshire chairman said he hopes his three children will complete the disposal of his shares by December 31, 2034.

Buffett converted 8,000 Class A shares into 12 million Class B shares for donation. The Sherwood Foundation, Howard G Buffett Foundation and NoVo Foundation will each receive 1 million shares, while the Susan Thompson Buffett Foundation will receive 9 million shares.

“My goal is to dispose of all of my Berkshire shares within about eight years,” Buffett said. “I have every hope that the three of them are able to carry out the disposal of my shares by December 31, 2034.”

He now owns 188,290 Class A shares and 1,162 Class B shares of Berkshire Hathaway. Buffett said grants to the three foundations managed by his children will increase annually, while donations to the Susan Thompson Buffett Foundation will rise at a somewhat faster pace.

“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,” he said.

Berkshire Hathaway Class B shares were little changed in pre-market trade after the announcement.Also Read: Dow Jones| Nasdaq | S&P 500 | US Stock Market Today | Live: S&P 500 and Nasdaq open higher as CPI, bank earnings take focusGreg Abel took over as the CEO of Berkshire Hathaway on January 1 this year. The succession plan, long anticipated by investors, saw Greg Abel assume operational control from January this year. Abel is also expected to lead Berkshire’s next annual shareholder meeting in Omaha, signaling a shift in day-to-day leadership even as Buffett remains an active presence.

Despite the transition, Buffett had earlier indicated he would continue coming to the office, reinforcing his long-standing approach to investing and business. His continued engagement suggests that while Berkshire has entered a new phase structurally, its core investment philosophy shaped by Buffett is unlikely to see any abrupt change.

Abel has now begun putting the company’s record cash pile to work. Berkshire agreed to buy Alphabet shares worth $10 billion in a private placement last month, the Google-parent said.

Berkshire began investing in Alphabet in last year’s third quarter, and owned $16.6 billion of shares as of March 31 this year. Last month’s investment made Alphabet one of Berkshire’s five largest common stock holdings, which are led by iPhone-maker Apple.