Warren Buffett has laid out a plan to “accelerate” the pace at which he gives away his $149 billion fortune to his children’s foundations, but still allows for short-term donations. Berkshire Hathaway Shareholders gain confidence in incoming CEO Greg Abel.
In his annual Thanksgiving letter, Buffett said he needed to accelerate the release of Berkshire stock to his three children’s foundation because of their age, which would “increase the likelihood that they will dispose of what is essentially my entire estate before a replacement trustee takes over.”
Mr. Abel, 63, will remain chairman of Oracle of Omaha and is expected to replace Mr. Buffett, 95, as CEO of Berkshire early in the new year.
“I intend to continue owning a significant amount of ‘A’ stock until Berkshire shareholders develop the sense of security with Greg that Charlie and I have enjoyed for many years,” Buffett wrote, referring to Charlie Munger, Berkshire’s longtime vice chairman and beloved business partner who passed away two years ago.
“It shouldn’t take long to gain that level of trust,” Buffett said. “My children are already 100 percent behind Greg, as are the Berkshire directors.”
Buffett owns about $149 billion worth of Berkshire stock, based on his holdings at the end of the second quarter, making him by far the company’s largest shareholder. Most of his wealth is in original A shares, which trade at about $751,480 per share.
He said 1,800 of the Berkshire A shares were converted into 2.7 million B shares and donated on Monday to four family foundations: the Susan Thompson Buffett Foundation, the Sherwood Foundation, the Howard G. Buffett Foundation and the Novo Foundation. This gift is worth more than $1.3 billion.
Buffett added, “The acceleration of my lifetime gifts to my children’s foundation in no way reflects any change in my view of Berkshire’s prospects.”
The memo is Buffett’s first major communication since announcing his plans to step down as CEO, marking the end of a six-decade run that made him a household name and one of the most successful investors in history.
“I am, as the British say, ‘keeping quiet’…” Buffett wrote in the letter.
“I feel good overall.”
Mr. Abel, now vice chairman of non-insurance operations, will take over writing Berkshire’s annual shareholder letter, a tradition Mr. Buffett started in 1965 that has become essential reading throughout Wall Street, and Mr. Buffett said he would continue this Thanksgiving message.
In one of the most personal parts of the letter, Buffett gave a rare update on his health.
“Surprisingly, I’m feeling good overall. I’m moving slowly and reading is becoming increasingly difficult, but I’m in the office five days a week and working with great people,” he wrote. “I was slow to age…but once it shows up, you can’t deny it.”
Berkshire Fortress
Since taking over Berkshire in 1965, Buffett has built a struggling textile mill into a $1 trillion conglomerate spanning insurance, railroads, utilities and consumer brands.
He spent part of his letter reaffirming Berkshire’s durability, saying it was designed to withstand almost any economic environment.
“Berkshire is less likely to suffer a catastrophic disaster than any company I know,” he said.
Berkshire had a record $381.6 billion in cash at the end of September, highlighting its unparalleled balance sheet and prudent investment approach. In addition, Buffett has sold stocks for 12 consecutive quarters, reflecting his wariness about high-priced markets.
The company’s core business continues to perform well, with operating income increasing 34% in the third quarter. Still, Buffett acknowledged that Berkshire’s massive size is both its strength and its limitation.
“Overall, Berkshire’s business has a slightly better-than-average outlook, led by a small number of uncorrelated, fairly large, blue-chip companies. But 10 or 20 years from now, there will be many companies that will perform better than Berkshire, at the cost of our size,” he wrote.
Berkshire‘s stock rose about 10% in 2025, outperforming many defensive stocks but lagging the S&P 500 in a tech-driven bull market.
“Our stock price has been volatile, sometimes dropping by as much as 50%, which has happened three times in 60 years under current management,” Buffett said. “Don’t despair. America will come back, and so will Berkshire.”
— With reporting by Becky Quick.
