On November 21, US time, the "stock god" Buffett once again donated approximately $866 million in Berkshire Hathaway stocks to four charitable organizations.
On the same day, 93 year old Buffett issued a shareholder letter appointing his children as executors of his will. After his death, over 99% of his wealth will be donated to charitable organizations, and Berkshire already has a suitable CEO successor. He said, "I feel great, but I am fully aware that I have entered extra time
Donate another $866 million in stocks
Warren Buffett stated that he has donated approximately $866 million in Berkshire Hathaway stock to four family charitable organizations.
According to regulatory documents submitted by Buffett's investment company Berkshire Hathaway, Buffett donated 1.5 million shares of Berkshire's B-class shares to the Susan Thompson Buffett Foundation named after his first wife; And donated another 900000 B-class shares to the charity of his three children, Howard, Susan, and Peter, with each charity receiving an average of 300000 shares. These three charitable organizations are the Howard G. Buffett Foundation, Sherwood Foundation, and Novo Foundation.
Since 2006, the "stock god" Buffett has donated to the four aforementioned charitable organizations every year before Thanksgiving. In a shareholder letter released on the same day, Buffett once again promised to donate over 99% of his wealth to charity and designated his children as executors of his will.
I have already entered extra time
In this shareholder letter, Buffett, now 93 years old, rarely revealed information about his successor. Buffett stated that Berkshire has a "suitable CEO" and a "suitable board of directors" to succeed. At the age of 93, I feel great, but I am fully aware that I have entered extra time, "he said in the letter
The "God of Stocks" assured Berkshire's shareholders in the letter that even without his supervision, the "empire" he has cultivated over the past 60 years will withstand the test of time. He said, "In the short term, I will use my significant shareholding to support Berkshire in continuing its uniqueness. However, in the near future, Berkshire will earn its reputation on its own. Corruption may occur in all types of large institutions, whether they are government, charitable, or profit seeking. However, this is not inevitable, Berkshire's advantage lies in its ability to withstand the test of time
Continue to overweight the Japanese stock market
Buffett's every move remains the focus of market attention.
Last week, Berkshire issued $827 million worth of Japanese yen bonds, marking the company's second issuance of Japanese yen bonds this year. Market speculation suggests that Buffett may be attempting to hedge Berkshire's currency risk with Japan's low interest rates.
Since its first issuance of Japanese yen bonds in 2019, Berkshire has frequently raised funds in the market. As of September, the company has approximately $7.6 billion in Japanese yen debt. Market analysts suggest that some of the newly issued bonds may be used to repay Berkshire's existing Japanese yen debt due in September, suggesting that Buffett plans to stay in the Japanese market for the long term.
Berkshire first disclosed its Japanese holdings in 2020, investing in five major Japanese companies: Mitsubishi Corporation, Mitsui Industries, Itochu Corporation, Marubeni Corporation, and Sumitomo Corporation. Since then, Buffett has repeatedly increased his holdings in these five companies. The "stock god" stated that buying is because they have a rough understanding of what the five major firms are doing, they are very similar to Berkshire, and the prices are "absurdly low".
This investment has indeed brought significant returns to Berkshire. Buffett's deputy, Munger, once said a few weeks ago that investing in Japan was "natural" and "money came too easily".
With the Japanese stock market soaring to a 33 year high, Berkshire has revealed that it has doubled its holdings.