As I understand, the son is there not to lead the company (Greg Abel is the CEO), but to oversee their family's share in the enterprise.
jjallen 2 hours ago [-]
He's there to maintain the very unique culture of the company. I think it's sort of like if they have his son there he of all people should know Buffett's/Berkshire's culture and be able to best maintain it. He's got a few years to figure out a successor. But yeah this is mostly about the unique culture they have.
WarmWash 2 hours ago [-]
He also has been on the board since 1993. So it's not like his son is walking in today as the new guy.
He was elected by the board too, rather than directly placed by Warren.
koolba 1 hours ago [-]
> He was elected by the board too, rather than directly placed by Warren.
I don’t think the last name hurt his chances in 1993 either.
jjallen 1 hours ago [-]
You would want someone who is intimately familiar with the culture to be involved for a long time in case something happened to Warren.
thundercleeze 54 minutes ago [-]
I imagine there were some other candidates in 1993 that didn't share Buffet's genetics.
Waterluvian 2 hours ago [-]
Does this actually work or is this just the best option he's got given he cannot live forever?
yuuu 3 hours ago [-]
I thought he was giving away 99% of his wealth?
crossroadsguy 2 hours ago [-]
Rich people donate for tax and the ultra-rich donate without actually donating it :)
sarjann 3 hours ago [-]
Probably in a charitable trust that will be managed by the family. With the trust owning the shares.
nostrademons 44 minutes ago [-]
He was giving it to the Gates Foundation for Bill & Melinda Gates to manage, but that deal went into limbo when Bill showed up in the Epstein files and Melinda divorced him.
csdreamer7 34 minutes ago [-]
The money he is giving away is going to foundations managed by his children (last I read).
nostrademons 27 minutes ago [-]
That's recent, just as of the last couple months. Historically the children's foundations have been a sideshow and he's given the bulk of his wealth away to the Gates Foundation. You can see that from the dollar amounts: this year's gift to the children's foundations was 1M BRK-B shares (the equivalent of about $500M) to each, while he's given away a total of $66B, over 120x as much.
bluGill 14 minutes ago [-]
Though unlikely the case here, family foundations should always be looked at as a likely source of corruption.
You cannot bribe me directly - that would be caught. However you can donate money to my family foundation and my kids (or spouse) will draw a large salary from it while doing almost nothing and they do some good for the world so it looks like a charity. Of course the kids/spouse will support me in various ways that all rich kids will.
Again, probably not what is happening here, but every time you hear of a family foundation you should ask who they are using it to corruption in some form. Even when it doesn't seem to be you should still look.
JauntTrooper 33 minutes ago [-]
1% of $140 billion is still $1.4 billion.
apothegm 3 hours ago [-]
Still leaves an absurd amount of wealth to manage.
Plenty of other charities in the world. Just because he stopped giving to the Gates Foundation over Epstein ties doesn't mean he won't send the money somewhere else.
Waterluvian 2 hours ago [-]
Most of them seemingly have control problems where even if they do, it is in the form of a giant money pile still under their control that they give away the returns of, usually also completely under their control.
toomuchtodo 2 hours ago [-]
What's interesting is they cannot, but their ex partners go much further in their giving (Melinda French, MacKenzie Scott, for example).
Waterluvian 2 hours ago [-]
I wonder if there's a survivorship bias there: those who can and do reject the status quo.
toomuchtodo 2 hours ago [-]
My hot take is that men with extreme wealth and power are desperate to keep it as part of their identity, where the women I mentioned do not have the same character and personality flaws, and therefore use it as a tool to do good because they are not optimizing for status, power, and wealth: they are optimizing to do good. Doesn't always hold, there are exceptions.
"Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority; still more when you superadd the tendency of the certainty of corruption by authority." -- Lord Action
DennisP 1 hours ago [-]
One giant exception was Chuck Feeney, who made $8 billion on duty free shops and gave almost all of it away, much of it anonymously. By the end of his life he and his wife had a couple million and lived in a rented apartment.
idiotsecant 6 minutes ago [-]
Giving away your fortune in secret is so much more virtuous than doing it with a giant foundation with your name on it. Much respect.
There's a difference in men and women... until there's not. Very convenient.
toomuchtodo 41 minutes ago [-]
There's a large body of medical research around women having more empathy than men, specifically around brain volume in the inferior frontal gyrus. Does it always hold? There are always exceptions. Broadly speaking, in most cases, it is a function of brain structure, per person. Do you have many examples of exceptional wealthy and powerful women who are monsters? I do not. I welcome corrections and citations, and am happy to be proven wrong on this.
TLDR Show me the brain fMRI and I will show you the soul. In some cases, facial structure is enough for weak but meaningful signal.
I think more likely is that bill and Jeff built their wealth through their businesses, which they are still directly involved in. Giving away their wealth would be equivalent to giving away the business they built from the ground up
I think there's also a question of efficacy. Bill and Jeff are really good at turning $1 into $10. Melinda and Mackenzie? Not so much. If bill or Jeff wanted to maximize the amount they can give, the best strategy would be for them to continually earn until they die, and then donate it.
toomuchtodo 26 minutes ago [-]
I agree that Bill and Jeff are better at exploitation at scale. That’s how you become that wealthy. We are lucky they’re divorced and the wealth is in the hands of better stewards to distribute it to do good.
bragr 3 hours ago [-]
Well he's not dead yet.
Betelbuddy 2 hours ago [-]
That is what I told the tax man...they did not buy it...
u1hcw9nx 3 hours ago [-]
He has. His family manages the foundation that owns BRK stock.
infecto 3 hours ago [-]
Isn’t that the usual loophole though? He definitely continues to donate large amounts but I always question setting up a trust that the kids run.
traviswingo 2 hours ago [-]
It’s not really a “loophole,” it’s a standard way to give away absurd sums of money.
Have you ever tried to donate billions of dollars? It’s actually extremely difficult.
You have to find causes you’re passionate about/things that society needs, find the correct charities to give the money to, make sure your money actually goes towards the thing they say it will (this is difficult), and then figure out how much you can actually donate (you can’t just give N dollars to company Y. They’ve got zero experience managing that much money, and no way to scale into doing it efficiently.)
What happens then is you have $100b to donate, and mostly only do it $10m at a time or less.
Warren’s kids are old now. They’ve all been donating money for YEARS (it’s a mandatory part of their trust).
So yeah, you receive tax benefits by transferring shares to a foundation you also control, but that money is now earmarked for charity. It doesn’t flow both ways, and the laws on this are very tight (bad actors will find a way, but what’s new?).
infecto 2 hours ago [-]
Sure that is the typical way to donate your wealth but there are many other ways than giving it with control to your children. I have no judgement but doing it this way is a nice way to move money within your family.
Everyone does it different and I have no judgement but you could just as easily pick a quorum of folks to do the job with a very explicit timeline. Charitable donations are quite broad in the US. So sure lots of wealthy folk don’t this way but not everyone!
mvc 1 hours ago [-]
If it's so difficult, maybe they could take the easy option and, you know, properly fund the government to build the shared infrastructure on which we all rely by paying tax proportional to their wealth.
dsl 33 minutes ago [-]
Warren Buffet made the largest single tax payment in US history last year. He doesn't play any games.
Right, donating your present wealth because you expect to continue receiving an astronomical amount of wealth in perpetuity through your company ownership is not all that grand of a gesture.
Certainly better than many alternatives, but it’s not a gesture that should make the median income person feel like existing as an excessively wealthy person should be okay/legal.
In my opinion, personal wealth/asset control above a certain level deemed excessive (perhaps $100 million then adjusted for inflation moving forward) should be taxed at 100% and put into a special fund intended to help pay for social services, healthcare, housing the homeless, etc. In the case of asset control perhaps a good method would be to distribute excessively valued ownership stakes to employees or random members of the public (e.g., many of Elon Musk’s shares in his companies forfeited and distributed to others).
idiotsecant 4 minutes ago [-]
This makes sense as long as public control makes the outcome of that money better than letting the bazillionare control it. I'm not sure which way the actual truth tilts, but I suspect it's sometimes one and sometimes the other.
mrlonglong 3 hours ago [-]
Can he give me a few million then?
ozim 2 hours ago [-]
Few million?
I would be set for the rest of my life if I got half a mill falling from sky today, I guess I could even make it work with 250k.
Currently I am pondering how absurd amount of money a billion of dollars is. When loads of people can only -earn and eat through/spend not save- $1 million; working their asses off for something like 20 years.
david-gpu 2 hours ago [-]
For what it is worth, if you want your withdrawals to last for decades, then you are limited to around a yearly inflation-adjusted cap of around 3% of the original principal per year, gross of taxes, if you invest in low-cost passive index funds. That is a budget of $30K/year for every million you have invested in the market.
If you are interested, the /r/fire and /r/financialindependence subreddits are useful.
andrewstuart 3 hours ago [-]
And me please. 2 mill.
iso1631 2 hours ago [-]
Still leaves $1.5b, that's a hell of an income if you stick it in any widespread passive fund, and still 100 times more than even the 1% mark in the US.
Betelbuddy 2 hours ago [-]
Yes the Billionaires pledge...a masterpiece of public relations...or he could have have paid more taxes than his Secretary...but he never did...
hshdjdjdif 3 hours ago [-]
he is giving 99% to the buffet family foundation ofc
mgfist 3 hours ago [-]
> but to oversee their family's share in the enterprise
Not exactly, he's there to oversee the culture of Berkshire and ensure it's continuity. Buffett is donating all of his wealth (and has already donated $66B), so there isn't a fortune to protect.
Berkshire is an institution of sorts at this point, and requires strong stewardship to prevent enshittification (for lack of a better word).
almostarockstar 2 hours ago [-]
Some better words just off the top of my head:
- to prevent institutional degradation.
- to avoid cultural shift for the worse.
- to keep hold of and nurture that culture.
donut 1 hours ago [-]
Those phrases soften what happens too much.
idiotsecant 3 minutes ago [-]
no, enshittification is accurate.
rayiner 3 hours ago [-]
And this is how you get constitutional monarchy.
cmiles8 6 minutes ago [-]
His son isn’t running the company, he’s just the board chair which has fairly limited power on its own.
Iolaum 3 hours ago [-]
While I liked your comment enough to upvote, I then realized that Chairman isn't an operational position. It's more a position where the person can exercise ownership of a company (to put it in layman terms). In your analogy he wouldn't be the athlete, more like the person who gets the winning money (assuming his son also has shares) and chooses the trainer/coach of the athletes (which still needs skill btw).
mcculley 3 hours ago [-]
But we have been told for a long time that Buffett was a very active Chairman.
mgfist 3 hours ago [-]
Warren was CEO until 9 months ago. While yes, he's been chairman for 50 years, he's been an exclusive chairman for only 9 months. The role is ambiguous anyways and it's pretty obvious that someone else won't have the authority Warren has. And his son has been a director for 30 years so it's not like he's a new hire
jjallen 2 hours ago [-]
He was chairman and CEO for a long time. Since he has only been a chairman for not that long I don't think it's fair to say that he's been a very active chairman for a long time.
kristianc 3 hours ago [-]
Whose strategy is explicitly to hold good stocks for a very long time.
seanclayton 3 hours ago [-]
I think Claude can do that right?
runjake 48 minutes ago [-]
Warren's son has been a leader at Berkshire for a very long time. He was voted in by the board, not Warren.
I’m sure his dad had nothing to do with it and it’s just a coincidence.
lesuorac 23 minutes ago [-]
His dad probably has a lot to do with it.
You think he didn't teach his children anything about finance?
avdwrks 4 minutes ago [-]
The guy is 71 years old and has built a life long career of his own, people are acting like he just elected a 21 year old nepo baby to run the company.
Aurornis 44 minutes ago [-]
This is a position on the board. The Buffett estate gets an important board role because it represents their family’s large stake. Choosing someone in the family is consistent with this structure.
The article you’re picking the quote from is about estate taxes.
datsci_est_2015 4 hours ago [-]
Maybe the implication is that Warren thinks it’s significantly easier to run a wealth fund than get gold in the Olympics. I would probably agree.
dzonga 4 hours ago [-]
there's nothing wrong with leaving things to your kids to run.
that's the point of the effort after all.
warren as smart as he is was tryna go against the grain of thousands of human evolution. if you train your kids - then most likely they would've values similar to yours. hit or miss but most times a hit.
mcculley 3 hours ago [-]
A lot of rich men, when younger, say that they will not leave so much of the wealth to their children. Then they get older and realize what other old men realized.
detourdog 3 hours ago [-]
These are jobs with titles we are talking about it says nothing about Buffets assets or will.
willmarch 3 hours ago [-]
Which is what?
mcculley 2 hours ago [-]
Evolutionary psychology is stronger than whatever they thought previously.
jnsie 3 hours ago [-]
Don't grow old
lifestyleguru 3 hours ago [-]
You only have to get rich once, you will not get rich for the second time, and opportunity to get rich occurs only once in every many generations.
expedition32 2 hours ago [-]
We live in neo feudalism. The hard part is getting to a billion but once you do your family will be part of the elite for centuries.
Nemi 3 hours ago [-]
The Chairman position is to protect company culture, not make operational decisions.
cube00 3 hours ago [-]
Not sure any chairman has their ear to the ground to fully understand the culture within their organization.
I never saw our CEO in person, never saw our chairman even on a webinar.
And yes it's not their job to be that low level, but they can't have an idea of the culture either.
mgfist 3 hours ago [-]
Berkshire itself has less than 50 employees, so it's absolutely possible to do this.
ekjhgkejhgk 3 hours ago [-]
"Company culture" at Berkshire Hathway doesn't mean the same as at most companies. BH buys companies and don't interfere with them. So while BH employs upwards of 100k people, the people whose culture the CEO cares about is probably under 100 people.
Nemi 1 hours ago [-]
This is the answer. While it is very real to talk about "employee culture" as company culture, in this particular case, the "culture" I was talking about was from a corporate/investment/acquisition level. Howards job is not to understand how each company that BRK owns is run, that is the CEO's job. But Howards job is to look at BRK from a high level and make sure that the CEO is executing in the same way that Warren set up, namely – buying companies and stocks at a "fair" price or below, and not micromanaging the companies that they acquire. If the CEO is not living up to that, Howard's (and the board's) one card that they can play is to replace the CEO.
red-iron-pine 31 minutes ago [-]
sounds like a role that can be replaced by GPT
epolanski 18 minutes ago [-]
No, the chairman is there to represent the biggest shareholders and defend the common interest of getting the best out of the company.
epolanski 20 minutes ago [-]
He also invested his personal money in securities that Berkshire itself owned, thus breaking one of the rules of Berkshire itself.
wmeredith 3 hours ago [-]
Oh it applies to him. He just doesn’t care.
micromacrofoot 47 minutes ago [-]
Yes, the powerful always do this. It might be challenging to find an exception.
It's not as rewarding to consider that you've reached your position by more good luck than effort, so you hand down advice from on high because clearly you're smarter than everyone else (doesn't help that many people treat you this was to gain access).
Then you continue to do whatever you want despite your own advice because of course... you're smarter than everyone else.
keiferski 4 hours ago [-]
Buffett has been planning this since at least 2011:
CHICAGO (MarketWatch) -- Warren Buffett has told the CBS News program "60 Minutes" that after he dies, he wants his son to become non-executive chairman of Berkshire Hathaway. Howard Buffett, a farmer with no college degree, would be a good successor, the elder Buffett said, because he understands the values of the company.
Howard Buffett, a farmer with no college degree, would be a good successor, the elder Buffett said, because he understands the values of the company.
I’m not usually about hereditary succession, but this is an exception I could get behind.
crossroadsguy 2 hours ago [-]
> Howard Buffett, a farmer with no college degree
What absolute humble beginnings ;-)
hn9zmdcaou 4 hours ago [-]
Sat on a couple of boards and the non exec chair mostly just guards the culture and can fire the CEO. Abel runs the business. That's a very different job from Howard's.
BennyBallTC 4 hours ago [-]
Many people do not know this but he still holds the stock that he first bought as a 13y old. It is now worth 8+ figures!
obelix150 2 hours ago [-]
Not true. He bought his first stock at 11 by pooling money with his sister, and sold after it dropped 30% then bounced back up to a profit. The stock was "Cities Service" which became Citgo later.
I've read this years ago in "The Warren Buffett Portfolio", but couldn't find a definitive source for this response quickly, so here (https://www.fool.com/how-to-invest/2014/03/15/the-very-first...) is the reference I used to recount the details above.
BennyBallTC 1 hours ago [-]
Wording. That stock in question he first bought at 13 is Texas Pacific Land and he still owns it. It may not have been "his first ever" but he holds that one still.
iso1631 2 hours ago [-]
To be fair that was around the time Columbus was sailing across the ocean blue
ricardobayes 3 hours ago [-]
Maybe someone can enlighten me, but what's the point of "never selling"? Stocks are not a collectible that you can just look at for fun. Their whole point is to sell for profit, at some time. Maybe it's just me but if you "never cash out", that seems a waste of capital. Or perhaps this is a marketing stunt wealthy people sometimes to? Akin to "I live in a small house".
reticulates 3 hours ago [-]
this is such a funny comment, we are so tech-pilled that we forgot companies traditionally pay dividends and that’s the reason to invest, to share in the profits, not to speculate
I wish I saw this comment two years ago while the stock price of one of our local company is still cheap. I sold all my shared before the price slightly tanked, earning just around 14% profit. Now two years later the price has gone up ~100% and they paid dividends twice during the time.
Should have treated it the old-fashion way, not the modern day-trading way.
detourdog 3 hours ago [-]
If it pays a dividend there is income. Buy and hold is a very common approach to investing. Overtime the cost basis of a good stock will decrease. Some could be sold to invest in other things.
Buy and hold is a hedge against inflation as good if goods increases the the stock reflects the relative expansion of the money supply.
metabro 2 hours ago [-]
wealth needs to be kept somewhere. you can either keep it in cash where it inflates away. or in bonds that also inflates away but slower or stocks that is a hedge against inflation.
so the point is protecting your wealth against inflation and continuing the compounding over long stretches of time.
you can liquidate as required or even borrow against it like the very rich do.
DanielHB 3 hours ago [-]
Technically you can borrow money against your share, if you think your share gains will be higher than the interest rate you essentially have free money (although, obviously, not risk free). So that is a use for never selling shares.
Also some shares pay dividends.
3 hours ago [-]
rsprinkle 3 hours ago [-]
Because if you don't sell you don't pay taxes. You can instead borrow against the asset and get a credit for the interest you pay. The joys of being filthy rich.
jjallen 2 hours ago [-]
There's a big difference between keeping all of your ownership and giving it to the son and paying a huge salary and making him non-executive chairman while giving away most of your wealth.
iambateman 2 hours ago [-]
A lot of negativity here on Buffett. I doubt any mega-billionaire is a total saint, but by comparison Warren seems like a guy who tried to do good in the world.
We should hope for fewer billionaires, but as long as we have them, we should hope for more Warrens.
Joel_Mckay 34 minutes ago [-]
Warrens team was famous for extracting undervalued companies from the market, and formed a solid rational investment posture that lasted decades.
By comparison, most other companies including your Bank are often just a group of clowns in cheap suits offloading their mistakes onto suckers. I used to think people that complained were crazy, until I started comparative investing a few ETF.
Warren drove the same old car for years, as unlike most of wall street is not selling his image. You don't have to like the guy, but we can respect his resolve. If he is leaving, it is a bad sign or his story is ending. =3
bell-cot 4 hours ago [-]
Best wishes and all. But given Berkshire's scale, and the son's age (71), questions about the next succession plan seem appropriate.
They all seem very similar to the British "new nobility" in the mid-late 19th century, albeit with less syphilis and opium.
mitxela 4 hours ago [-]
Rags to rags in three generations, don't forget. These people are not Warren Buffett and most likely do not share his skill, luck, and psychological investment.
detourdog 4 hours ago [-]
The grandson was in FFA (Future Farmers of America) in high school. My guess is the Buffett family values environment was not typical suburban USA.
mgfist 2 hours ago [-]
Buffett’s giving almost all his wealth away so not the usual rags-to-rags.
The grandson has a pretty successful career already anyways (helped obviously by his relation to Warren)
tclancy 1 hours ago [-]
Think you’re begging the question with that final phrase.
echoangle 4 hours ago [-]
Is grooming the right word here? The guy is 42, grooming to me has a pedophilic connotation.
SirFatty 4 hours ago [-]
You should spend less time on 4chan.
avazhi 4 hours ago [-]
This is how groomed is used, yes. The sexually overt connotation is a very recent thing.
Squinting at a [Compact] 1971 Oxford English Dictionary - the pedophilic meaning postdates that edition.
sajithdilshan 3 hours ago [-]
71 is way past retirement age in many countries. Also didn’t know Warren Buffett is 96 already. Maybe it’s time to pass the torch to someone younger from a different generation
4 hours ago [-]
theplumber 4 hours ago [-]
So after all no one could be trusted
andrewstuart 3 hours ago [-]
I think it would be tedious to be that wealthy. You’d spend all your time managing the money and associated stresses.
A super comfortable life with enough money to get you to 105 years old that all you need.
cube00 2 hours ago [-]
> You’d spend all your time managing the money and associated stresses.
That's what your personal executive team is for.
3 hours ago [-]
dominotw 3 hours ago [-]
Warren Jong-il
dupli 33 minutes ago [-]
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bunabhucan 2 hours ago [-]
[dead]
bicepjai 21 minutes ago [-]
[flagged]
kittikitti 4 hours ago [-]
People take what he does and says as gospel so knowing he went with monarchy tier nepotism is going to be very annoying.
eviks 4 hours ago [-]
Or it could be very beneficial - you don't need to know anything about finance to judge the quality of this particular decision, so it's easier to cast doubt on other gospels
kittikitti 17 minutes ago [-]
The decision was not based on competency so I can judge based on the factors that were considered. It's clear that this was done because of nepotism and I struggle to find other reasons. While you can hide behind ambiguity (it _could_ be very beneficial) there is no indication that it is at this time.
mrlonglong 3 hours ago [-]
Nepo dynasty.
It'll all burn eventually.
program_whiz 3 hours ago [-]
Yes, it could happen:
1. The next generation has been groomed by Buffet Himself, passing on as much knowledge as he can, but of course, this successor didn't create the fortune, doesn't appreciate it as much, and doesn't have as strong of judgement. However, he is surrounded by the old guard and wise mentors. But as those wither away, he is unable to determine who the worthy successors in his circle should be, slowly the inner circle begins to weaken too.
2. The next successor gets an even less effective set of principles from the first, only knowing off-hand how the money was made in the first place, they are a manager only. They also have no idea how the original people were selected or what makes a good inner circle. Soon it devolves into yes-men and people who seem superficially qualified to manage things.
3. The next successor has little no skills, other than showing up to meetings and going with what advisors say. Because the decision making of the original Buffet mentality has been so diluted, they only know superficial / surface understanding, akin to anyone who read the short books on the subject. They don't know how to do the deep diligence that made BH great. The inner circle is all sycophants, climbers, and clingers. Bad investments, debacles, and poor judgment create losses. Investors begin to panic sell, soon the BH stock crashes in value, losing 90% of the fortune.
And so on... Not hard to see how its like handing off a complex but successful open source project to your progeny instead of the most qualified developers. Pretty soon, its just an unmaintainable mess. They don't understand why things are the way they are, maybe they aren't as good a programmer as great grandpa. They definitely don't know how to hire and keep the best talent that originally built the thing. Pretty soon complexity budget and community good will are exhausted, people move to something newer and more dynamic.
mgfist 2 hours ago [-]
It probably will happen over time as entropy does its thing, but the structure is different than what you describe.
For one, Howard is not the successor, Greg Abel is. Howard is a Stewart of culture, but he is not the leader.
He also isn’t inheriting Buffetts fortune so the generational rot won’t be the same.
Next, both Greg and Howard have been at Berkshire for decades, and however is next up will likely be similar. So there is time to pass on the values.
Laslty, Berkshire is a decentralized company. The company itself has less than 50 employees. All of the companies they own have their own leadership structures and cultures, and Berkshire does not burden itself in managing it. This makes the successor problem a lot easier
foobarian 2 hours ago [-]
At least the next generations past 2-3 probably won't have the genetic problems we saw with the Habsburgs
He was elected by the board too, rather than directly placed by Warren.
I don’t think the last name hurt his chances in 1993 either.
You cannot bribe me directly - that would be caught. However you can donate money to my family foundation and my kids (or spouse) will draw a large salary from it while doing almost nothing and they do some good for the world so it looks like a charity. Of course the kids/spouse will support me in various ways that all rich kids will.
Again, probably not what is happening here, but every time you hear of a family foundation you should ask who they are using it to corruption in some form. Even when it doesn't seem to be you should still look.
https://www.yahoo.com/news/politics/articles/warren-buffett-...
"Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority; still more when you superadd the tendency of the certainty of corruption by authority." -- Lord Action
https://en.wikipedia.org/wiki/Atlantic_Philanthropies
https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...
Great human, thanks for mentioning.
TLDR Show me the brain fMRI and I will show you the soul. In some cases, facial structure is enough for weak but meaningful signal.
(politics are also brain structure, citations in https://news.ycombinator.com/item?id=48634883)
I think there's also a question of efficacy. Bill and Jeff are really good at turning $1 into $10. Melinda and Mackenzie? Not so much. If bill or Jeff wanted to maximize the amount they can give, the best strategy would be for them to continually earn until they die, and then donate it.
Have you ever tried to donate billions of dollars? It’s actually extremely difficult.
You have to find causes you’re passionate about/things that society needs, find the correct charities to give the money to, make sure your money actually goes towards the thing they say it will (this is difficult), and then figure out how much you can actually donate (you can’t just give N dollars to company Y. They’ve got zero experience managing that much money, and no way to scale into doing it efficiently.)
What happens then is you have $100b to donate, and mostly only do it $10m at a time or less.
Warren’s kids are old now. They’ve all been donating money for YEARS (it’s a mandatory part of their trust).
So yeah, you receive tax benefits by transferring shares to a foundation you also control, but that money is now earmarked for charity. It doesn’t flow both ways, and the laws on this are very tight (bad actors will find a way, but what’s new?).
Everyone does it different and I have no judgement but you could just as easily pick a quorum of folks to do the job with a very explicit timeline. Charitable donations are quite broad in the US. So sure lots of wealthy folk don’t this way but not everyone!
Certainly better than many alternatives, but it’s not a gesture that should make the median income person feel like existing as an excessively wealthy person should be okay/legal.
In my opinion, personal wealth/asset control above a certain level deemed excessive (perhaps $100 million then adjusted for inflation moving forward) should be taxed at 100% and put into a special fund intended to help pay for social services, healthcare, housing the homeless, etc. In the case of asset control perhaps a good method would be to distribute excessively valued ownership stakes to employees or random members of the public (e.g., many of Elon Musk’s shares in his companies forfeited and distributed to others).
I would be set for the rest of my life if I got half a mill falling from sky today, I guess I could even make it work with 250k.
Currently I am pondering how absurd amount of money a billion of dollars is. When loads of people can only -earn and eat through/spend not save- $1 million; working their asses off for something like 20 years.
If you are interested, the /r/fire and /r/financialindependence subreddits are useful.
Not exactly, he's there to oversee the culture of Berkshire and ensure it's continuity. Buffett is donating all of his wealth (and has already donated $66B), so there isn't a fortune to protect.
Berkshire is an institution of sorts at this point, and requires strong stewardship to prevent enshittification (for lack of a better word).
- to prevent institutional degradation.
- to avoid cultural shift for the worse.
- to keep hold of and nurture that culture.
Here's his Wikipedia page: https://en.wikipedia.org/wiki/Howard_Graham_Buffett
You think he didn't teach his children anything about finance?
The article you’re picking the quote from is about estate taxes.
that's the point of the effort after all.
warren as smart as he is was tryna go against the grain of thousands of human evolution. if you train your kids - then most likely they would've values similar to yours. hit or miss but most times a hit.
I never saw our CEO in person, never saw our chairman even on a webinar.
And yes it's not their job to be that low level, but they can't have an idea of the culture either.
It's not as rewarding to consider that you've reached your position by more good luck than effort, so you hand down advice from on high because clearly you're smarter than everyone else (doesn't help that many people treat you this was to gain access).
Then you continue to do whatever you want despite your own advice because of course... you're smarter than everyone else.
CHICAGO (MarketWatch) -- Warren Buffett has told the CBS News program "60 Minutes" that after he dies, he wants his son to become non-executive chairman of Berkshire Hathaway. Howard Buffett, a farmer with no college degree, would be a good successor, the elder Buffett said, because he understands the values of the company.
http://www.marketwatch.com/story/warren-buffett-wants-farmer...
I’m not usually about hereditary succession, but this is an exception I could get behind.
What absolute humble beginnings ;-)
I've read this years ago in "The Warren Buffett Portfolio", but couldn't find a definitive source for this response quickly, so here (https://www.fool.com/how-to-invest/2014/03/15/the-very-first...) is the reference I used to recount the details above.
Should have treated it the old-fashion way, not the modern day-trading way.
Buy and hold is a hedge against inflation as good if goods increases the the stock reflects the relative expansion of the money supply.
so the point is protecting your wealth against inflation and continuing the compounding over long stretches of time.
you can liquidate as required or even borrow against it like the very rich do.
Also some shares pay dividends.
We should hope for fewer billionaires, but as long as we have them, we should hope for more Warrens.
By comparison, most other companies including your Bank are often just a group of clowns in cheap suits offloading their mistakes onto suckers. I used to think people that complained were crazy, until I started comparative investing a few ETF.
Warren drove the same old car for years, as unlike most of wall street is not selling his image. You don't have to like the guy, but we can respect his resolve. If he is leaving, it is a bad sign or his story is ending. =3
Also, since the NYT says nothing else about the son: https://en.wikipedia.org/wiki/Howard_Graham_Buffett In context, his recent involvement in local politics seems rather odd.
They all seem very similar to the British "new nobility" in the mid-late 19th century, albeit with less syphilis and opium.
The grandson has a pretty successful career already anyways (helped obviously by his relation to Warren)
Squinting at a [Compact] 1971 Oxford English Dictionary - the pedophilic meaning postdates that edition.
A super comfortable life with enough money to get you to 105 years old that all you need.
That's what your personal executive team is for.
It'll all burn eventually.
1. The next generation has been groomed by Buffet Himself, passing on as much knowledge as he can, but of course, this successor didn't create the fortune, doesn't appreciate it as much, and doesn't have as strong of judgement. However, he is surrounded by the old guard and wise mentors. But as those wither away, he is unable to determine who the worthy successors in his circle should be, slowly the inner circle begins to weaken too.
2. The next successor gets an even less effective set of principles from the first, only knowing off-hand how the money was made in the first place, they are a manager only. They also have no idea how the original people were selected or what makes a good inner circle. Soon it devolves into yes-men and people who seem superficially qualified to manage things.
3. The next successor has little no skills, other than showing up to meetings and going with what advisors say. Because the decision making of the original Buffet mentality has been so diluted, they only know superficial / surface understanding, akin to anyone who read the short books on the subject. They don't know how to do the deep diligence that made BH great. The inner circle is all sycophants, climbers, and clingers. Bad investments, debacles, and poor judgment create losses. Investors begin to panic sell, soon the BH stock crashes in value, losing 90% of the fortune.
And so on... Not hard to see how its like handing off a complex but successful open source project to your progeny instead of the most qualified developers. Pretty soon, its just an unmaintainable mess. They don't understand why things are the way they are, maybe they aren't as good a programmer as great grandpa. They definitely don't know how to hire and keep the best talent that originally built the thing. Pretty soon complexity budget and community good will are exhausted, people move to something newer and more dynamic.
For one, Howard is not the successor, Greg Abel is. Howard is a Stewart of culture, but he is not the leader.
He also isn’t inheriting Buffetts fortune so the generational rot won’t be the same.
Next, both Greg and Howard have been at Berkshire for decades, and however is next up will likely be similar. So there is time to pass on the values.
Laslty, Berkshire is a decentralized company. The company itself has less than 50 employees. All of the companies they own have their own leadership structures and cultures, and Berkshire does not burden itself in managing it. This makes the successor problem a lot easier