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.