Warren Buffett – A Wisdom Philanthropic Billionaire

If you own a fortune worth $ 44 billion ($ 4,400,000,000), what will you do? Spend like no tomorrow? Leave the fortune to your family? Just throw the monies on the street to watch someone pick it up? Actually, the possibilities are infinite. Though, to use this huge sum of monies in the needy, useful ways, it requires the owner’s wisdom. Warren Buffett mentioned before that while his circle of competence is within investment world, to use the monies his accumulated wisely is not within his circle of competence. Thus, it makes sense to hand it over to the one whose is in his circle of competence in distributing his wealth. He admires the way Bill and Melinda Gates in running their foundation. Although the foundation does not carry his name, he does not mind. This is in contrast to many “generous donator” that when they donate, their name must appear prominently.

“I still believe in the philosophy - FORTUNE quoted me saying this 20 years ago - that a very rich person should leave his kids enough to do anything but not enough to do nothing.” How brilliant this billionaire. While, many rich people after many years of hard work and accumulated a tremendous sum of monies, they normally give the wealth to their children after they pass away. Very often, the wealth accumulated might not even pass down to 3rd generation. It’s pity to see that.



We need to learn from this Greatest Investor cum Philanthropist of the century. Warren’s wisdom not only lies in investment but in many scopes. We are delighted to share these through our on-going “Berkshire’s 40 Years Wisdom of Life” series postings.

TV interview with Warren Buffett, Bill and Melinda Gates could be view here.

There is also a short video clips during the announcement of Buffett’s gift to Bill and Melinda Gates Foundation. Check it out here.

Thank You Mr. Buffett

Warren Buffett, one of the most successful investors in the world, over the years had been criticized as a stingy person. They reckon him as not been generous in donation as compared to his net worth. When talking about the donation, Buffett has his own thoughts, which include:
1) If someone could generate investment return faster than others, he should retain all of the incomes and reinvest to maximized the return. Put it an example, if you have $ 1 million net worth, you can either donate it all or retain it and invest it for the future benefit. If you choose the former, the donation is limited to the amount that you donate today. If you retain it and do the investment that could give you at a return rate of 24% per annum, after 40 years, your original $ 1 million will become $ 5.5 billion! Yes, it’s $ 5,500,000,000!! The difference is enormous. How many people could benefit from the $ 1 million donation as compared to $ 5.5 billion? This is similar to corporation. If the monies retained could gives higher return rate to its shareholders, the corporation should retain all the profits and reinvest it. Over the years, the value of the corporation will grew in tandem with the investment result it achieved.


2) The donation made should come out from your own pocket, not from others. This is in contrast to most of the so called “generous donator”. These “generous donator” often make a donation that shines his name but the money is from his company shareholders’ money. When making a sincere donation, these people should not donate at the expense of his shareholders’ monies but his own.




Buffett, whose net worth at $ 44 billion will give out his 85% of the net worth to 5 foundations that is fought for global health problems, education, poverty, nuclear weapons threat and so forth. The foundations are:
1) Bill and Melinda Gates Foundation
2) Susan Thompson Buffett Foundation
3) Howard Graham Buffett Foundation
4) Susan A. Buffett Foundation
5) NoVo Foundation (Peter A. Buffett)

The letter to the foundations from Warren Buffett could be viewed from this link.

By donating such huge amount to the philanthropic foundations, it could shut the mouth of the criticizers who attack Warren Buffett over the years. Mr. Buffett is in line what he believes in: live in the modest life, generate huge fortune not for his own pleasure but for the whole human kind. Once again, we put salute to this greatest investor who also pay attention to philanthropic works. Thank You Mr. Buffett.

News of the Buffett’s donation could be viewed from here.