For decades, the friendship between Warren Buffett and Bill Gates—two of the wealthiest individuals on earth—has been a fascinating story in the business world. The two first met over 30 years ago at a meeting that neither initially wanted to attend.
Since that meeting, Buffett and Gates have developed a deep friendship, serving as mutual mentors and colleagues. Gates joined Berkshire Hathaway’s board in 2004 and served until 2020, the same year he stepped down from Microsoft’s board. Buffett was a member of the Bill and Melinda Gates Foundation board until 2021, resigning shortly after the couple announced their divorce.
In 2006, Buffett pledged to donate 85 percent of his Berkshire stock, then worth about $37 billion, to charity, with the bulk of it going to the Gates Foundation. To date, his donations have totaled more than $43 billion.
In 2010, Buffett co-founded The Giving Pledge, encouraging billionaires to give away the majority of their wealth during their lifetime or upon their death. However, in a recent interview with The Wall Street Journal, Buffett revealed that donations to the Gates Foundation would cease after his death. “The Gates Foundation has no money coming after my death,” Buffett stated.
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Buffett didn’t elaborate on the reason for this change in his plans. When he resigned from the foundation’s board, he noted that his goals were “100% in sync with those of the foundation,” and his physical presence was unnecessary to achieve those goals.
This decision means the foundation will face a significant funding gap in the future. Buffett intends to entrust his children with deciding the fate of his wealth after his death. “I feel very, very good about the values of my three children, and I have 100% trust in how they will carry things out,” Buffett told the Journal.
Buffett’s confidence in his children is based on their preparation over the past 18 years. In November, he previewed his estate plan, naming his three children as executors and stating, “They were not fully prepared for this awesome responsibility in 2006, but they are now.”
Buffett’s will stipulates that “more than 99% of my estate is destined for philanthropic usage.” However, he believes that the best people to decide the use of his wealth after his death are those still living. He could have imposed strict instructions, but he acknowledges that circumstances, laws, and needs change over time.
“Laws in respect to philanthropy will change from time to time, and wise trustees above ground are preferable to any strictures written by someone long gone,” Buffett wrote in a letter last year.
This perspective offers a valuable lesson for leaders. Your role should be to build and trust successors, allowing them to make decisions without undue restrictions. Ultimately, your most important job is to prepare your successors for success.
