Warren Buffett Gifts Over $2.8 Billion More in Stock to Charities

Industrials

Published: July 6, 2015 12:15 pm

Last Updated: July 6, 2015 12:16 pm

Berkshire Hathaway Inc. (NYSE: BRK-A) has announced that Warren E. Buffett now has given 20,640,653 Berkshire Hathaway Inc. (NYSE: BRK-B) shares to five foundations. These were the Class B shares, but this still had a closing value of roughly $2.8 billion.

All in all, this has no impact on Berkshire Hathaway’s big four major public equity holdings.

Berkshire Hathaway’s press release showed that this was Buffett’s 10th annual gift. These gifts have been made to the Bill and Melinda Gates, Susan Thompson Buffett, Sherwood, Howard G. Buffett and NoVo Foundations.

The press release showed that the shares had a value of more than $2.8 billion as of last Thursday’s close. Under the terms, the gift must be spent currently for operations and not added to endowment funds.

Based on a $137.39 closing price, the actual sum is $2.835 billion.

It is always up for debate as to whether this is a tax strategy move under the acceptable guidelines of philanthropy. Unfortunately, such conversations generally fall on deaf ears when it comes to Buffett. After all, the public seems to always think that Warren Buffett knows better than anyone else.

As a reminder, this has no impact on actual payouts inside of outside of Berkshire Hathaway. After all, the company pays no dividend.

Berkshire Hathaway’s B shares were last seen down $0.20 at $137.19, against a 52-week trading range of $122.72 to $152.94. Berkshire Hathaway’s A shares were at $206,200, against a 52-week range of $185,005 to $229,374.

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