Why Is Warren Buffett Giving Away Billions to Charity Instead of Leaving It to His Own Children?

Warren Buffett, born on August 30, 1930, in Nebraska, US, took an interest in business and investing in his youth. He is a successful investor known for his financial acumen and his philanthropy.

Warren is also a dad of three. He has promised to leave his fortune to charitable sources rather than have his kids, Howard, Susan who goes by Susie, and Peter Buffett inherit his wealth. The investor has shared his motivation behind this decision.

His kids have also broken their silence regarding their father’s choice. Warren, who has also worked in filmography, had three children with his late wife Susan Buffett. Sadly, Susan died in 2004 from a stroke while visiting friends in Cody, Wyoming.

Before her death, Susan had battled stage four oral cancer. Her daughter, Susie, narrated that Susan underwent surgery as part of her treatment and was admitted to the ICU. The surgery was then followed by radiation therapy.

Susan couldn’t talk, eat, and swallow for a while as she recovered. However, Susie stayed with her mom as she healed for four months. She described her mom’s whole healing process as “terrible.”

Susie also shed light on the kind of marriage her mother and father had. She noted that her mother is the reason her father became successful. “If he had married someone else, it wouldn’t have been the same at all,” Susie said about Warren and Susan.

Warren’s daughter divulged that Susan, who tied the knot in 1952 with Warren, played an important role in the investor’s personal development as a human and business person.

Warren and Susan also never fought and focused on supporting each other. “It sounds like a fairy tale life, but we did grow up with this wonderful role model of a relationship with our parents,” shared Susie. Even so, Warren and his wife did not have a conventional marriage.

Susan moved out of their Omaha home to San Francisco in 1977 to pursue her music career. She and her husband remained married but this was also when Warren met his second wife, Astrid Menks.

Susie explained that her mother’s desire to leave Omaha and move to California wasn’t due to a lack of love for her father or a wish to end the marriage. Susan wanted to be known for who she was, especially as Warren had become famous and wealthy.

“She basically wanted a room of her own. They were very connected in a very deep way. They didn’t need to be in the same room,” added Susie.

Still, at first, she didn’t understand why her mom had to leave her dad knowing that he would find it hard to function on his own. After Susan left, Sussie stayed at home for a while helping his dad do chores such as laundry.

Sussie also divulged that she knew her father’s second wife before Astrid met her parents. Susie knew that her mom met Astrid at one of the restaurants down at the market, where Susan was singing and Astrid was working.

So, when Susan moved to San Francisco, she asked some people, including Astrid to keep an eye on Warren. Eventually, Astrid moved in with Warren, and two years after Susan died, they married in 2006.

Susie mentioned that Astrid had been a part of the family for so long that it became normal for them when she moved in with her father. Susie was 24 and living in California at the time.

Susie acknowledged that this arrangement might not work for everyone. However, it was suitable for her parents and Astrid, as everyone was happy and no one was hurt. While it felt normal to them, Susie recognized it wasn’t a typical situation.

She noted that her mom and Astrid were very close and loved each other very much. Susan was also glad that Astrid was there to take care of Warren.

“She loved my dad. She wanted him taken care of and happy. And, Astrid, there’s no one better than Astrid, I mean she’s just, she loves my dad, she wouldn’t care if he had one cent. I mean, she just loves him,” elaborated Susie

Susie was grateful that Astrid was in Warren’s life. “He’s not somebody that any of us thought would make it too well on his own so it kinda worked out perfectly. That’s why we’re all glad Astrid moved in,” Susie said about Warren.

Aside from her parents’ marriage life, Susie has also opened up on the kind of man and father Warren is. The investor lives a simple life, which extends to his family life. Susie recalled their childhood as ordinary, noting that their dad wasn’t wealthy or famous during those years.

They lived in a comfortable but modest home, attended public schools, and did not receive cars at 16. Instead, they had allowances and household chores, creating a very typical upbringing. Warren was strict with money and his kids had to work and save.

Susie said she discovered her father’s wealth through a news article. Additionally, when she was in middle school, Adam Smith, who wrote “Supermoney” came to see her dad. When she heard the name of the book, it gave her an early clue that her dad may be rich.

She revealed that Warren didn’t have a flashy lifestyle. He would work daily, return home for dinner, and spend evenings reading upstairs. “Really, we lived in what I guess I would describe as an upper-middle-class neighborhood. He still lives in the same house today,” Susie divulged.

When Warren got rich, his wealth did not change his personality. “He’s pretty boring — it’s just not what people expect. I think it’s also probably surprising to people that the money doesn’t matter to him,” said Susie.

Susie mentioned that her father accumulated his wealth almost unintentionally by excelling at what he loved. Despite ending up with a lot of money, he genuinely doesn’t care about being wealthy.

Susie shared that her dad would still be okay if he wasn’t making a lot of money from his work. Warren, an intense worker, is now at a point where he has control over what he does with his time.

Peter has also spoken about his upbringing, especially regarding his father’s wealth. Reflecting on his childhood, he felt fortunate not to have fully understood what his father did for a living.

Peter added that Warren’s work wasn’t motivated by a desire to flaunt his wealth or prove his worth. “He was doing it because he was really good at it and he just loved it. He was so good at it, of course, but the money didn’t matter,” he shared.

Peter said the money was just a way for his father to acknowledge his success internally. He reiterated what his sister revealed, saying that Warren maintained a modest lifestyle despite his wealth.

“He lives in the house that I grew up in. I can go home and sleep in my bedroom—it’s a little different now, but it’s basically the same room,” Peter said.

Warren also had the same car for years, driving himself to the same office as he did when Peter was five. Peter and his siblings also attended public school, and their grandparents lived nearby, providing a typical neighborhood experience.

This upbringing was a valuable lesson as Peter noted, “So it was an extraordinary gift to be shown that ultimately money wasn’t the point. It was to provide a loving, safe household.”

Peter is also now into philanthropic work like his father. His foundation, the NoVo Foundation, was founded in 2006. It backs programs that advocate for a holistic, interconnected, and restorative approach to humanity.

Susan had the vision this foundation does, especially its work towards humanity. So, Peter is glad his mom’s idea became a reality. To Peter, the foundation simply ensures people are kind to each other. This work is directed at people who have been historically marginalized.

However, Peter ventured into music too. He had always been involved in music, and after exploring other options, he realized it was his true calling.

Over time, his work, including projects like “Dance With Wolves,” led him to delve into the American Indian story. This connection resonated with a part of him that had been significant since his childhood. It also deepened his passion for both music and cultural storytelling.

As Peter looks back, he notes that many people make assumptions about him due to his father. These people feel he had an easy life filled with privilege.

However, Peter has faced challenging economic and personal periods. He has had a double mortgage on his house and needed to fundraise for shows.

He has admitted to occasionally wishing for an easier path. In his 20s, he once asked his father for a loan, but his father refused. Though Peter was initially upset, he now values his father’s steadfastness.

“I learned more in those [difficult] times about myself and my resiliency than I ever would have if I’d had a pile of money and I could have glided through life,” he admitted.

Peter said that the best act of love for a parent is to believe in their child and to let them know they do not need help. He revealed that his support and privilege came from two parents who believed in him.

“That support didn’t come in the form of a check. That support came in the form of love and nurturing and respect for us finding our way, falling down, figuring out how to get up ourselves,” concluded Peter.

Just like Peter and Sussie, Howard described his childhood as normal. He attributes this normalcy to the fact that his father was not rich or famous when they were growing up. Rather, he was in the process of making money.

Howard believes he and his siblings grew up normally because they celebrated holidays like Christmas together and had dinner as a unit. Warren was also a father who instilled knowledge in his kids.

Howard recalled that when he was 11 or 12, Warren told him that he should remember it takes even up to 30 years to build a reputation and less than five minutes to destroy it. He said the little bits of philosophy his dad gave helped build their character.

“The kind of person he is, I think all three of us kids have parts of that in us and he always tried to stress integrity and at the same time being pretty flexible, knowing that, you know, all young kids, you know, good kids make mistakes,” said Howard.

Warren’s lessons to his kids have extended to money management. He announced in 2006 that much of his $50 billion accumulated wealth would go to charity and not to his kids. He passed this fortune to the charitable organization run by Bill and Melinda Gates.

The news may have surprised the world but Susie, Howard, and Peter, much like their humble father, appear largely unaffected by wealth.

Rather than focusing on what they could have inherited, the siblings have been concentrating on how to manage the money. The three received approximately $1 billion each from their father. They are dedicated to using these funds for their own charitable foundations.

The three children have always known their father’s disdain for inherited wealth. Howard acknowledged that it was evident they wouldn’t receive a substantial amount of money.

He expressed that if given a choice between receiving $50 million annually for personal use or the foundation, he would choose the foundation. Howard questioned the purpose of having $50 million without donating it.

So, Howard felt that what his dad had done was give his kids the kind of money they could do a lot with. They can use the money to help people in the world without having to manage a lot of individuals personally.

Susie also supported her father’s decision. “The truth is it would be insane to leave us that much money. It just would be,” she admitted. Warren also values his kids as he revealed he could never sign a will until his kids read it, understood it, and gave their suggestions.

As for Warren, he shared his plans to donate 85 percent of his wealth, roughly $37.4 billion, all in Berkshire stock. The largest portion, about $31 billion, would go to the Gates Foundation. This foundation improves health and education, particularly in impoverished countries.

Gates Foundation is already the largest grant-making foundation in the US, with assets nearing $30 billion. Warren’s donation was likely to cement its status as the most significant and influential organization of its kind.

Additionally, Warren would become a trustee of the foundation alongside Bill and Melinda. For 18 years now, Warren has contributed generously to this foundation, and the Gates Foundation is grateful for the investor’s donation.

His donation and role helped the foundation champion and shape its work to create a better world where individuals can live healthy and productive lives.

In 2024, Warren, who now owns $130 billion in Berkshire Hathaway stock, said his donation to the Gates Foundation would end upon his death.

Now, his children need to make a unanimous decision on which philanthropic purpose his remaining $130 billion will go to after his death. “It should be used to help the people that haven’t been as lucky as we have been,” explained Warren.

Warren, who has changed his will repeatedly, arrived at this goal after he saw how his children have developed over the years. Today, he trusts his kids wholly. “I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out,” he gushed.

Susie mentioned that she and her siblings are yet to discuss plans for the $130 billion, as it feels too early. However, she anticipated that they would likely continue their current efforts.

Peter noted that various factors might influence their future decisions. These include stock prices, tax laws, and social and political changes. He emphasized that with so many variables, it’s difficult to predict what the best choices will be when the time comes.

Howard recognized the enormity of the task he and his siblings had. He stated that someone needed to manage the substantial funds their father intends to donate to charitable foundations. He also expressed that he considers it a privilege to undertake this responsibility.

Despite Warren’s immense wealth, his children have witnessed firsthand how well he raised them and his belief that money isn’t everything.

His dedication to philanthropy is evident as he generously donates to charity. His well-raised children have been entrusted with ensuring his charitable intentions are fulfilled after his passing.