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.