In an exclusive interview with the Wall Street Journal in June this year, the 94-year-old Buffett rarely revealed the latest inheritance arrangements.
He noted that he had revised his will several times to accommodate his children's maturation.
Berkshire Hathaway (BRK.A-US) (BRK.B-US) issued a statement on Monday (11/25) that Warren Buffett converted his 1,600 Class A shares into 2.4 million Class B shares. shares and will be donated to four family foundations respectively.
Based on the closing price that day, the price of Berkshire's Class B shares was approximately US$477.42, and the total amount of this donation was approximately US$1.146 billion.
Buffett's philanthropic act marks his further commitment to wealth inheritance and philanthropy.
According to a statement from Berkshire Hathaway, Buffett will donate 1.5 million Class B shares to the "Susan Thompson Buffett Foundation" named after his late wife.
The remaining 300,000 Class B shares each will be donated to the three foundations owned by the three children: Sherwood Foundation, Howard G. Buffett Foundation and NoVo Foundation.
The three of them must unanimously decide on the use of the foundation's funds, which is undoubtedly a major test of their teamwork and decision-making abilities.
This decision reduced Buffett's holdings of Berkshire's Class A shares to 206,363 shares after the donation, and he still holds approximately 37.6% shares.
Buffett mentioned in the statement that as early as 2004, he and his late wife Susan jointly owned 508,998 Class A shares. He said that after his death, his children will be fully responsible for the gradual distribution of all the Berkshire shares he holds, which currently account for 99.5% of his wealth.
CNBC reported that Buffett wrote in the letter on Monday, "Make sure each of your children understands the logic of your decisions and the responsibilities they will face after your death, regardless of whether your wealth is modest or staggering."
According to the Bloomberg Billionaires Index, Buffett is worth $150.2 billion, making him the seventh richest person in the world.
On the same day Buffett announced his donation, the three major U.S. stock indexes collectively rose.
As of the close, the Dow Jones Industrial Average rose 440.06 points, or 0.99%, to 44,736.57 points, continuing to hit a record high.
The Nasdaq index rose 51.19 points, or 0.27%, to 19,054.84 points.
The S&P 500 index rose 18.03 points, or 0.30%, to 5987.37 points.
In terms of individual stocks, most large technology stocks rose, with Amazon rising by more than 2%, and Google, Apple, and Facebook rising by more than 1%.
In terms of chip stocks, GlobalFoundries rose by more than 5%, Microchip Technology rose by more than 4%, and ON Semiconductor rose by more than 3%.
Bank stocks also performed well, with Citigroup, Bank of America, and Wells Fargo all rising more than 1%.
Only Tesla fell by nearly 4% due to California’s plan to introduce a subsidy policy for electric vehicle purchases.
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Buffett's final decision, through share conversion and charitable donations, not only demonstrated his philanthropic philosophy, but also brought about the continued rise of the US stock market.
It provides a clearer framework for its subsequent wealth inheritance, which will undoubtedly have a profound impact on investors at different levels and the market.
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