Warren Buffett Named The Most Generous Billionaire

One of the reasons that I started this website is because I so admired the investing style of Berkshire Hathaway CEO Warren Buffett. I have marveled at the investment strategy of Warren Buffett since my college days and have long since considered him one of the greatest minds in value investing. There is another reason however that I follow Buffett’s financial wisdom. Buffett has been a generous investor and his philanthropic endeavors continued in 2012.

According to Bankrate, Buffett gave away over $3 billion dollars last year. “Buffett is putting his money where his mouth is. In 2010 he announced that he was giving 90 percent of his fortune to charity and urged other rich Americans to donate at least half of their wealth. Since then, his Giving Pledge, as the campaign is called, has attracted dozens of billionaires, including media tycoon Ted Turner and Oracle Corp. co-founder Larry Ellison. Buffett’s $3.09 billion gift last year was in the form of stock, to be divided equally among foundations run by his children. After Buffett, the largest donations in 2012 came from Facebook founder Mark Zuckerberg, whose $498.8 million gift to the Silicon Valley Community Foundation will support health and education. No. 3 is Paul Allen, co-founder of Microsoft, with a $300 million donation to the Allen Institute for Brain Science.”

Warren Buffett should be commended for his generosity as well as his financial prowess. While the S&P 500 had a fine year in 2012 gaining over 13% from its closing value in 2012. Warren Buffett had an even better year. Shares of Berkshire Hathaway rose nearly 17%. The billionaire investor generated a robust 16.8% return for his investors. Warren Buffett has managed to prove time and time again that you do not have to chase risk to generate solid returns. Investors could have made a tidy profit in 2012 and slept well at night by investing with the world’s greatest investor.

Class A shares are trading at $140,000 per share and Class B shares are trading at $93 per share. Full Disclosure: I do own shares of Berkshire Hathaway.

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3 Responses to “Warren Buffett Named The Most Generous Billionaire”

  1. I am not being cynical here and Mr. Buffett is to be commended. I just wanted to point out that there is a real gift/estate tax incentive to lifetime versus death-time gifts. Under our tax code, when he makes lifetime gifts he reduces the size of his future taxable estate by the gift taxes he pays while alive. So if he made 3 billion in gifts, he paid 1.2 billion in gift taxes (assumed 40% estate tax rate for simplicity). That 1.2 billion is now out of his taxable estate. If he did not do this and waited until he died this would not be the result. In tax parlance, this is called the “tax exclusive and tax inclusive” nature of our federal estate and gift tax system.
    Regardless, he is most generous and should be admired.

  2. I agree that Warren Buffett should be commended for his generosity and for inspiring so many other wealthy individuals to be generous as well.

  3. Buffett is such a generous guy, then again i would be if I had billions sat in the bank. Its important when you get as wealthy as he is that you don’t forget to put back. You have the power to do so much with your wealth Buffett, glad to see you’re using it wisely. :)

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