Berkshire Hathaway Inc. News Release

Rhea-AI Summary

Warren E. Buffett announced the conversion of 8,674 A shares into 13,011,000 B shares to facilitate the donation of 13,008,758 B shares of Berkshire Hathaway stock to five foundations. These include 9,930,357 shares to the Bill & Melinda Gates Foundation Trust, 993,035 shares to the Susan Thompson Buffett Foundation, and 695,122 shares each to the Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation. Post-donation, Buffett holds 207,963 A shares and 2,586 B shares. He emphasizes that from 2006 to the present, he has neither bought nor sold any Berkshire shares and does not intend to. The donations align with lifetime commitments made in 2006, and his will stipulates that over 99% of his estate will go to philanthropic causes. As of now, Buffett's remaining A shares are valued at about $127 billion, representing roughly 99½% of his net worth.

Positive

• Warren Buffett's donation of 13,008,758 Berkshire B shares to foundations increases philanthropic goodwill.
• The conversion of A shares into B shares facilitates significant charitable contributions without affecting Buffett's overall strategy.

Negative

• Large conversion of A shares to B shares might raise concerns among investors about potential stock dilution.
• The substantial donation of B shares could impact the stock's supply and demand dynamics.

OMAHA, Neb.--(BUSINESS WIRE)-- (BRK.A; BRK.B) – Today, Warren E. Buffett will convert 8,674 A shares into 13,011,000 B shares in order to donate 13,008,758 shares of Berkshire Hathaway “B” stock to five foundations: 9,930,357 to the Bill & Melinda Gates Foundation Trust, 993,035 shares to the Susan Thompson Buffett Foundation and 695,122 shares to each of the Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation. The donations will be delivered today.

Mr. Buffett’s ownership of Berkshire now consists of 207,963 A shares and 2,586 B shares.

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Mr. Buffett’s comments follow:

“The mathematics of the lifetime commitments to the five foundations are interesting. The schedule for annual grants was made on June 26, 2006, and has since been supplemented by significant grants to four of the five recipients. When originally made, I owned 474,998 Berkshire A shares worth about $43 billion and those shares represented more than 98% of my net worth. I have converted A shares into B shares before making contributions.

During the following 18 years, I have neither bought nor sold any A or B shares nor do I intend to do so. The five foundations have received Berkshire B shares with a value when received of about $55 billion, substantially more than my entire net worth in 2006. I have no debts and my remaining A shares are worth about $127 billion, roughly 99½% of my net worth.

Nothing extraordinary has occurred at Berkshire; a very long runway, simple but generally sound capital deployment, the American tailwind and compounding effects produced my current wealth. My will provides that more than 99% of my estate is destined for philanthropic usage.

The lifetime commitments expire upon my death or at an earlier time if certain conditions set forth in the 2006 letter occur. All of these conditions continue to be met.

My November 21, 2023 letter set forth procedures of my will that are unlikely to be changed before my death. My then-current will becomes public upon my death.”

About Berkshire

Berkshire Hathaway and its subsidiaries engage in diverse business activities including insurance and reinsurance, utilities and energy, freight rail transportation, manufacturing, retailing and services. Common stock of the company is listed on the New York Stock Exchange, trading symbols BRK.A and BRK.B.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240628425257/en/

Marc D. Hamburg

402-346-1400

Source: Berkshire Hathaway Inc.

FAQ

What recent action did Warren Buffett take with Berkshire Hathaway's shares on November 21, 2023?

Warren Buffett converted 8,674 A shares into 13,011,000 B shares to donate 13,008,758 B shares to five foundations.

Which foundations received donations of Berkshire Hathaway B shares from Warren Buffett?

The Bill & Melinda Gates Foundation Trust, Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation received donations.

How many Berkshire Hathaway shares does Warren Buffett hold after his recent donation?

Post-donation, Warren Buffett holds 207,963 A shares and 2,586 B shares of Berkshire Hathaway.

What is the value of Warren Buffett's remaining Berkshire Hathaway A shares?

Warren Buffett's remaining A shares are valued at approximately $127 billion.

How does Warren Buffett plan to use his estate according to his will?

Warren Buffett's will stipulates that more than 99% of his estate will be used for philanthropic purposes.