Post by Kat on Jun 26, 2006 18:06:58 GMT -5
It was nice to see something like this happening. I think its great. That sure is a heck of alot of money...
Buffett, Gates unite on $60 billion foundation By Jonathan Stempel
NEW YORK (Reuters) - Warren Buffett on Monday signed over much of his $44 billion fortune to the Bill & Melinda Gates Foundation, uniting the world's two richest people in a bid to fight disease, reduce poverty and improve education.
The roughly $30.7 billion donation doubles the Gates Foundation's size to $60 billion, five times larger than any other U.S. charitable group and bigger than the gross domestic product of Kuwait.
Bill Gates, the world's richest person, co-founded and remains chairman of software company Microsoft Corp..
His friend and bridge partner Buffett, 75, became known as the Sage of Omaha as he built the world's second biggest personal fortune running Berkshire Hathaway Inc., an insurance and investment company.
"I am not an enthusiast for dynastic wealth, particularly when the alternative is 6 billion people having much poorer hands in life than we have," Buffett said at a signing ceremony with the Gateses at the New York Public Library.
Gates, 50, this month said he plans in July 2008 to step down from his day-to-day Microsoft role to focus on his foundation, one of the goals of which is to improve access to technology in U.S. public libraries. It also focuses on fighting diseases such as HIV/ AIDS, tuberculosis and malaria.
Buffett pledged 10 million Berkshire Class B shares to the Gates Foundation. He also pledged 2.05 million Class B shares to foundations in the name of his late wife, Susan, who died in 2004, and for his three children, Susie, Howard and Peter.
The total donations of about $37.1 billion amount to 85 percent of Buffett's net worth and constitute the largest single act of U.S. charitable giving ever.
Buffett made the donations fewer than four months after he said Berkshire's board had identified a successor for him.
At a news conference, Gates said serious talks about a donation to the Gates Foundation began early this year.
Buffett's gift to that foundation will be in stages and conditioned on money being distributed the year it is donated.
The foundation gave away $1.36 billion in 2005, so Buffett's first gift of $1.5 billion, in July, may double its spending.
"This is his life's work," Gates said at the library ceremony. "Now that the money is going to be as much Warren's as the money my job helped generate, it's almost scary."
He said the extra funds will let the foundation "deepen, accelerate what we do."
Time magazine last year named the Gateses and Irish singer Bono of the band U2 its "Persons of the Year" for 2005, citing their charitable and philanthropic pursuits.
HIGHER VALUE?
Both Buffett and Gates emphasized the importance of keeping philanthropy separate from Berkshire's day-to-day operations.
Buffett's donations of Berkshire shares means the ultimate value of his gifts will be tied to the company's share price.
He downplayed speculation about the impact on Berkshire, saying he would not have acted if he thought it would hurt the company's shares or intrinsic value.
"I am having so much fun at doing what I do," he said at the news conference. "To say I'm going to spend a high percentage of my time in some other area, it's not realistic."
Berkshire shares fell as much as 2.9 percent on Monday as investors looked toward Buffett's eventual retirement and the possible sale by the foundations of Berkshire stock to fund giving.
"Those who are selling haven't thought this through," said Thomas Russo, a principal at Gardner, Russo & Gardner, which owns Berkshire stock. "Warren will no longer have to distract himself with charitable donations and can focus on the company."
Berkshire owns large stakes in such blue-chip companies as American Express Co. and Coca-Cola Co. and owns some 50 businesses, including Dairy Queen ice cream, Fruit of the Loom underwear and Geico auto insurance.
While Berkshire shares have lagged the Standard & Poor 500 index over the last two years, they have far outgained the benchmark since Buffett took over Berkshire, then a struggling textile maker, in 1965.
At the library ceremony, Buffett made the gifts official, first signing letters for his children's foundations.
"The first three letters are easy to sign," he said. "I just sign 'Dad."'
Buffett, Gates unite on $60 billion foundation By Jonathan Stempel
NEW YORK (Reuters) - Warren Buffett on Monday signed over much of his $44 billion fortune to the Bill & Melinda Gates Foundation, uniting the world's two richest people in a bid to fight disease, reduce poverty and improve education.
The roughly $30.7 billion donation doubles the Gates Foundation's size to $60 billion, five times larger than any other U.S. charitable group and bigger than the gross domestic product of Kuwait.
Bill Gates, the world's richest person, co-founded and remains chairman of software company Microsoft Corp..
His friend and bridge partner Buffett, 75, became known as the Sage of Omaha as he built the world's second biggest personal fortune running Berkshire Hathaway Inc., an insurance and investment company.
"I am not an enthusiast for dynastic wealth, particularly when the alternative is 6 billion people having much poorer hands in life than we have," Buffett said at a signing ceremony with the Gateses at the New York Public Library.
Gates, 50, this month said he plans in July 2008 to step down from his day-to-day Microsoft role to focus on his foundation, one of the goals of which is to improve access to technology in U.S. public libraries. It also focuses on fighting diseases such as HIV/ AIDS, tuberculosis and malaria.
Buffett pledged 10 million Berkshire Class B shares to the Gates Foundation. He also pledged 2.05 million Class B shares to foundations in the name of his late wife, Susan, who died in 2004, and for his three children, Susie, Howard and Peter.
The total donations of about $37.1 billion amount to 85 percent of Buffett's net worth and constitute the largest single act of U.S. charitable giving ever.
Buffett made the donations fewer than four months after he said Berkshire's board had identified a successor for him.
At a news conference, Gates said serious talks about a donation to the Gates Foundation began early this year.
Buffett's gift to that foundation will be in stages and conditioned on money being distributed the year it is donated.
The foundation gave away $1.36 billion in 2005, so Buffett's first gift of $1.5 billion, in July, may double its spending.
"This is his life's work," Gates said at the library ceremony. "Now that the money is going to be as much Warren's as the money my job helped generate, it's almost scary."
He said the extra funds will let the foundation "deepen, accelerate what we do."
Time magazine last year named the Gateses and Irish singer Bono of the band U2 its "Persons of the Year" for 2005, citing their charitable and philanthropic pursuits.
HIGHER VALUE?
Both Buffett and Gates emphasized the importance of keeping philanthropy separate from Berkshire's day-to-day operations.
Buffett's donations of Berkshire shares means the ultimate value of his gifts will be tied to the company's share price.
He downplayed speculation about the impact on Berkshire, saying he would not have acted if he thought it would hurt the company's shares or intrinsic value.
"I am having so much fun at doing what I do," he said at the news conference. "To say I'm going to spend a high percentage of my time in some other area, it's not realistic."
Berkshire shares fell as much as 2.9 percent on Monday as investors looked toward Buffett's eventual retirement and the possible sale by the foundations of Berkshire stock to fund giving.
"Those who are selling haven't thought this through," said Thomas Russo, a principal at Gardner, Russo & Gardner, which owns Berkshire stock. "Warren will no longer have to distract himself with charitable donations and can focus on the company."
Berkshire owns large stakes in such blue-chip companies as American Express Co. and Coca-Cola Co. and owns some 50 businesses, including Dairy Queen ice cream, Fruit of the Loom underwear and Geico auto insurance.
While Berkshire shares have lagged the Standard & Poor 500 index over the last two years, they have far outgained the benchmark since Buffett took over Berkshire, then a struggling textile maker, in 1965.
At the library ceremony, Buffett made the gifts official, first signing letters for his children's foundations.
"The first three letters are easy to sign," he said. "I just sign 'Dad."'
