Buffett Billions Not Going to His Kids
June 26, 2006 — -- Warren Buffett's legendary gift -- the largest in the history of American charity -- is in keeping with the billionaire financier's philosophy about wealth and family.
"I think that a rich person should leave their children enough so they can do anything but not enough that they can do nothing," Buffett told reporters in Manhattan.
Buffett said he believes in what he called "equality of opportunity," which is why he said the bulk of his personal fortune is going to charity instead of to his three children.
"It isn't in keeping with my view of how the world should operate to create huge amounts of dynastic wealth," he said.
But he does intend to help their charitable efforts. Buffett's plan to gift about 85 percent of his wealth includes about a billion dollars to foundations run by each of his children.
"My kids' view was elation." Buffett said. "They know my views on inherited wealth and share them. The idea of having considerably more resources to work with in terms of their own philanthropic interests got them enormously excited, and I think they'll do a terrific job."
Buffett is entrusting nearly $31 billion worth of Berkshire Hathaway stock to the foundation run by Bill and Melinda Gates.
"I have used the Gates Foundation as an example when I talk to students of a terribly successful organization," Buffett said.
The Gateses share Buffett's vision of giving back from their immense wealth. Bill Gates recently announced that he will be scaling back his responsibilities at Microsoft over the next two years in order to be more involved in his charitable endeavors.
"Bill and I really live by the belief that to whom much is given, much is expected," Melinda Gates told reporters.
The Gates Foundation focuses on fighting diseases worldwide and improving libraries and high schools in the United States. It has handed out more than $10 billion in grants since its inception in 1994. As Gates becomes more involved in the daily activities, the foundation has said it could double its staff of about 250 full-time workers during the next few years.
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