Warren Buffett, perhaps the world’s most powerful investor, has expressed again a dislike for family empires of wealth creation. It was confirmation of a long-standing belief to return to society something that, frankly, more often made sense today than ever before.
This billionaire philanthropist donated another $1.1 billion this time around in an apparent attempt to widen his commitment to redistribute wealth and socially do good.
Buffett’s Stance on Inherited Wealth
Berkshire Hathaway chief Warren Buffett has long supported the use of one’s fortune for worthy causes rather than extending it into generations.
Indeed, Buffett recently weighed in to proclaim that multi-generational wealth creation fuels economic inequality in society and that the practice of perpetuating family fortunes into the future does little for greater needs in society.
It’s an unnatural focus,” Buffett explained. “In the end, we should be focused on how our money can benefit the world, not how it can stay in the family. I believe wealth is meant to be shared, not hoarded.
The views of Buffett on wealth and inheritance have contributed to a discussion of the role philanthropy can play in responding to systemic inequality.
Through the active donation of the majority of his wealth to charitable organizations, Buffett continues to put into practice his belief that the wealthiest individuals should give a great deal to causes that benefit broader society.
$1.1 Billion Donation
Buffett’s $1.1 billion donation, given in June, marked just the latest installment in fulfilling his pledge to give away the lion’s share of his fortune. Since 2006, Buffett has committed to giving away 99% of his wealth through the Giving Pledge, which he co-founded with Bill and Melinda Gates.
So far, Buffett has contributed over $40 billion to charity, mostly to the Bill & Melinda Gates Foundation, but also other causes that support education, public health, and poverty relief.
The $1.1 billion donation went toward the Bill & Melinda Gates Foundation, which is at the forefront of the battle to reduce global poverty, enhance health care, and broaden educational opportunities.
It also attests to Buffett’s belief that the resolution of humankind’s most serious problems should fall under the obligations of the richest.
Buffett’s Continued Commitment to Philanthropy
Warren Buffett has for some time taken a rather consistent attitude toward philanthropy.
Furthermore, aside from his publicly made comments, he has shown an example himself, continuously donating enormous amounts to causes he believes will endure for a long time.
His most recent gift further cements his legacy as one of the world’s greatest philanthropists.
“I’ve always said that money can’t buy happiness, but it can do a lot of good in the world,” Buffett stated. “The point is to make a real difference. That’s what I’m trying to do with my wealth.”
The fact that Buffett remains alive, while billions of his wealth is donated, sets him apart from many other billionaires who decide to bequeath a much larger chunk of their estate to their heirs.
Rather, he has decided to concentrate on what he thinks will be the most relevant legacy — using his wealth in ways to create a better world for later generations.
A Call to Action for the Wealthy
Such statements and continued philanthropy by Buffett only voice a strong reminder to the rest of the high-net-worth individuals that the responsibility of wealth is not necessarily in its accrual but rather its redistribution towards promoting meaningful social changes.
His actions now point to the realization of how philanthropy, when executed well, can have a profoundly important impact on society.
