Warren Buffett to give bulk of his wealth to Gates Foundation

KING5.com ^ | June 25, 2006 | KING5.com

[HAL9000]

Excerpt -

SEATTLE - Warren Buffett, the world's second richest man, is starting this year to give much of his wealth to charity, with the bulk of over $40 million in Berkshire Hathaway stock going to the Bill and Melinda Gates Foundation.

In a letter dated Monday, Buffett, who is chairman of Berkshire Hathaway Inc., tells Bill and Melinda Gates that the first annual donation would go to the foundation this year. It's expected to total about $1.5 billion.

Up until now, all the money given away by the Gates Foundation has come from Bill and Melinda Gates.

The money from Buffett comes with a signficant catch. The letter says Buffett wants all his money to be distributed in the year it is donated, not added to the foundation's assets for future giving. He is giving the foundation a few years to get used to the idea of giving away a lot more money.

~ snip ~

[Cicero]

The truth is, the work of piling up money is often a great deal better for the world than the subsequent donation of that money to "charity."

The Rockefellers are a good example. The first Rockefeller built Standard Oil. The leftists attacked him as a selfish capitalist. Later generations of Rockefellers spent their lives giving money away to charities, unfortunately mostly destructive charities like Population Control and abortion.

They decided that the best way to deal with the numerous poor was to kill them off. Then there wouldn't be so many poor people around.

You could even say that about the Kennedys. Joe Kennedy did less damage to the world smuggling liquor during Prohibition than his children have done using the inherited money for leftist causes.

Is it their money? Sure. Can they spend it as they like? Sure. But that doesn't mean it's a good thing.

[Nihil Obstat]

BILL GATES' PLANNED-PARENTHOOD-PRESIDENT DAD INSPIRED PRO-ABORT FUNDING

NEW YORK, May 9, 2003 (LifeSiteNews.com) - In a lengthy interview with Bill Moyers released today, Microsoft billionaire Bill Gates reveals the inspiration for his funding of pro-abortion population control measures. Responding to a question by Moyers on how he came to fund "reproductive issues" Gates answered, "When I was growing up, my parents were always involved in various volunteer things. My dad was head of Planned Parenthood. And it was very controversial to be involved with that. And so it's fascinating. At the dinner table my parents are very good at sharing the things that they were doing. And almost treating us like adults, talking about that."

http://www.lifesite.net/ldn/2003/may/03050902.html

[GSlob]

"But that doesn't mean it's a good thing."
Actually, it is irrelevant - good, not so good, bad, or otherwise. What it does mean [to me at least] is that instead of entering into consideration of their charitable activities I need to loudly say "none of my business!!" [and of anyone's else, too]. This also complies with the injunction that in the works of charity the left hand ought not know whose pocket the right hand is picking.

[kenavi]

If you want to destroy an activity, tax it or give it boatloads of money for no economic return. "All the money in the world" will hurt not help Buffet's causes.

[Ronaldus Magnus Reagan]

NOTE: BUFFET (and GATES) WILL NOT PAY ESTATE TAXES.....but they WANT EVERYONE else to. They have enough money to pay the litany of attorneys it takes to set up Foundations for their pet causes.....and then hire their friends and family (Gates, at least)....

You are so right! I have gone through the Gates Foundations financial records (you can see them at their website) and guess what? In charitable contributions, the Gates' don't even spend the yearly *interest* that is collected on their fortune, let alone the estate capital itself. In fact, they spend $92 million a year just to administer the estate!

This is looking more and more like a permanent jobs program for Gates family members for many generations to come, with NO estate taxes paid! Bill Gates' father is a total hypocrite on the estate tax!

[al baby]

Buffet is a worthless human he wants to kill potential consummers how is that good bussines?

[Extremely Extreme Extremist]

This money would have been better served helping people in either a venture capital fund or used as capital for micro-financing.

Well said. I would have done the same too.

[ReleaseTheHounds]

Of course, he's going to pay estate taxes on this, correct? He hasn't done anything to avoid the death tax, has he? I know he's a proponent of the inheritance tax -- it's only fair, right? Now is this the same Warren Buffett who has enjoyed friendly deals to take over Solomon Brothers, and other nice insider deals, because he is such an icon? He didn't leverage this to his personal benefit did he?

[hedgetrimmer]

No more tax exempt foundations. They are destroying this country. Time to get rid of them.

[woofie]

Bill and Melinda, dont forget "The Woofie Fund"

[Nihil Obstat]

careful with that, they might want to spay/neuter you

[aShepard]

Well good for him.

That means that he's totally supportive of the youth and the ability of the Gates Foundation to totally vet the millions of "charity money-grubbers" looking for donations, and decide the best issues to fund, amongst the melee.

Fantastic news, and it points to his not being willing to pay huge salaries to an infrastructure, ala United Fund; US Red Cross, and others (Of course Salvation Army excluded from this rant!)

[kenavi]

And the Gates Foundation will invest it in Berkshire Hathaway.

There is no "market play" in Buffett giving Berkshire Hathaway shares to the Gates Foundation, for the Foundation then to sell those shares and then reinvest the proceeds (net of commission) back into Berkshire Hathaway. The only one that "scheme" enriches is the broker.

Besides, according to the article, Buffett will require the Gates Foundation to spend all he donates within one year from when it is given.

The $1.5 billion annual giving represents an amount that is less than 1/3 of the trading volume in BH stock in ONE DAY! That is why Buffett can afford to give away so much stock without pushing down the price and stiffing his fellow shareholders.

[libs_kma]

I never could understand why Gates is such a liberal, after Bubba Klintoon spent more money and energy going after Gates and Microsoft than he did going after terrorists.

Well, maybe Gates isn't so smart after all.....

[jim_trent]

There is a LOT of misinformation on this thread. The staunchly pro-abortion person in the family was Buffett's wife. She died a couple of years ago or so. She was separated from Warren (and lived on the left coast) for MANY years before that. However, it was MUCH cheaper for Mr. Buffett to finance her with as much money as she could spend rather than divorce her and give her half of it. There is no quesiton that he has supported her causes, but I don't really believe he is as rabid an abortion supporter as the people here are posting. He has already (actually many years ago) said he is not leaving his money to his kids since it would ruin them. I will trust that he has similar sense in other things.

[OmahaFields]

Well, it is his money and he deals with it as he sees fit. The nice touch is that he piggybacks on an existing foundation instead of the hassle of setting his own.

He set up the Buffet Foundation years ago.

[Mr. Bird]

There is absolutely zero value in either praising or hammering Buffett or Gates for their spending proclivities. My heavens, they hold wealth that is positively unimaginable; they owe society nothing in exchange (I would argue they have improved it collaterally anyway).

It's disappointing that they're not on my side, politically, but so what? And for those of you who concern yourselves with any potential estate tax evasion, get over it. I'd legally evade any tax I could; reminds me of the old saw about offering a woman $1 million and then $10 to have a little romp. It's all relative.

And by the way, the Gates foundation has provided millions for cancer research, which is in my opinion the best use of exhorbitant wealth.

[balrog666]

Actually, it is irrelevant - good, not so good, bad, or otherwise. What it does mean [to me at least] is that instead of entering into consideration of their charitable activities I need to loudly say "none of my business!!" [and of anyone's else, too]. This also complies with the injunction that in the works of charity the left hand ought not know whose pocket the right hand is picking.

Exactly. Envy is such a waste of time.

[John Lenin]

Mr. Buffet, please send me a million dollars. I promise to invest it wisely ...

[Imgr8t]

So how will this affect all of the Berkshire companies??