Warren Buffett revealed plans on Monday to quicken the pace at which he donates his $149 billion fortune to his children's charitable foundations, while still giving Berkshire Hathaway, Inc. (NYSE:BRK) (NYSE:BRK) investors time to gain faith in incoming CEO Greg Abel.
Buffett Signs Off
In a Thanksgiving letter that will now be an annual tradition, Buffett explained he needs to speed up transferring his Berkshire stock to his children's foundations due to their advancing ages, according to CNBC.
This, he said, increases the likelihood that they will manage and distribute his entire estate before alternate trustees take charge.
Read Next:Top Stocks With Earnings This Week: Plug, Oklo, Circle And More
Abel, 63, will succeed Buffett, 95, as Berkshire CEO early next year, while Buffett remains chairman.
Buffett noted he intends to retain a substantial portion of Berkshire's "A" shares until shareholders grow comfortable with Abel, much like they were with him and the late Charlie Munger, his longtime partner.
He added that this trust should build quickly, noting his children and Berkshire's board already fully support Abel.
Buffett, the largest Berkshire shareholder with roughly $149 billion in stock as of the second quarter, holds most of his wealth in high-priced "A" class shares.
Recently, he converted 1,800 of those into 2.7 million "B" shares and donated them, worth over $1.3 billion, to four family-backed charities: The Susan Thompson Buffett Foundation, The Sherwood Foundation, The Howard G. Buffett Foundation and the NoVo Foundation.
He emphasized that this faster pace of giving does not signal any change in his confidence about Berkshire's future.
The note marks Buffett's first major statement since revealing his intention to step aside as CEO, closing a legendary six-decade tenure that made him an iconic figure in investing.
‘Going Quiet … Sort Of’
“I will no longer be writing Berkshire's annual report or talking endlessly at the annual meeting. As the British would say, I'm ‘going quiet.’ Sort of,” Buffett wrote.
“Greg Abel will become the boss at yearend. He is a great manager, a tireless worker and an honest communicator. Wish him an extended tenure,” he added.
Abel, now vice chairman for noninsurance operations, will begin writing Berkshire's well-known annual letters to shareholders starting next year. Buffett plans to keep publishing his Thanksgiving note.
Touching briefly on his health, Buffett wrote that he feels generally well despite moving more slowly and reading with difficulty, continuing to work at the office five days a week with colleagues he admires.
Reflecting on his company's evolution, Buffett recounted how Berkshire grew from a struggling textile firm into a trillion-dollar powerhouse spanning insurance, transportation, utilities and consumer brands.
He reiterated the firm's resilience, claiming it is structured to endure almost any economic upheaval.
“I wish all who read this a very happy Thanksgiving. Yes, even the jerks; it's never too late to change,” Buffett wrote in closing.
Read Next:
Photo: Shutterstock
