Multi-Billionaire May Give Away 85 Percent of Fortune

By
ABC News
June 25, 2006, 2:12 PM ET
2 min read

June 25, 2006 — -- Warren Buffett, one of the world's richest men, is making an unprecedented donation to another of the world's richest men, Microsoft CEO Bill Gates.

Buffett, 75, the CEO of the Omaha, Neb.-based company Berkshire Hathaway, is worth $44 billion, according to Fortune magazine. Fortune reports Buffett will donate 85 percent of his fortune amassed from stock in the Berkshire Hathaway company to five foundations.

Five-sixths of the money reportedly will go to the Bill and Melinda Gates Foundation, which specializes in finding cures for diseases that plague the third world. His first annual donation is expected to be about $1.5 billion. The only catch is that Buffett wants his money to be used by foundation the same year he donates it, according to Fortune magazine.

Buffett, often called "Oracle of Omaha" for his uncanny ability to understand financial markets, is the first person to make a donation large enough to rival the money the Gates' spend on the foundation.

An unsigned statement from the Gates Foundation said Bill and Melinda Gates are "awed" by Buffett's decision.

According to Fortune magazine, Buffett will join the Gates foundation as a trustee once his donations begin.

Gates told the magazine that he and his wife are "thrilled" at the idea of having a new partner, and that Buffett's money will "both deepen and accelerate" what the foundation is trying to accomplish.

"The generosity and trust Warren has shown," Gates said, "is incredible."

Starting next month, Buffett will give a set of Berkshire B stock to the selected charities, Fortune said. Each year, the number of stocks he donates will decline by 5 percent. Either Buffet or his estate will continue to give to the Gates Foundation as long as Bill or Melinda Gates remain part of it, according to Fortune.

On Monday, Buffett will discuss philanthropy in America with the Gateses at the New York Public Library in a closed event from 11 a.m. to 12:30 p.m. He will hold a press conference at the New York Sheraton hotel at 1:30 p.m.