Buffett plans to give away remaining Berkshire shares by 2034

Warren Buffett is speeding up the transfer of his Berkshire Hathaway fortune, a move that changes where a large block of Berkshire stock is held without changing the company’s business. For everyday investors, the key point is that Buffett has put a date on giving away the rest of his shares: by the end of 2034.

In a Berkshire Hathaway news release Tuesday, Buffett said his goal is to “dispose of all” of his Berkshire shares within about eight years. He added that “mortality is unpredictable,” but said his remaining shares will go to four foundations “one way or the other” by Dec. 31, 2034.

The latest round totals almost $6 billion in Berkshire Class B shares, according to CNBC. A stock donation means Buffett transfers ownership of shares to charitable organizations. Those foundations can then hold the stock or sell shares over time to fund their work, depending on their own plans.

Where the shares are going

The largest gift is headed to the Susan Thompson Buffett Foundation, named after Buffett’s late first wife. CNBC reported that foundation will receive 9 million Berkshire Class B shares, currently valued at about $4.5 billion.

Three foundations led by Buffett’s children are each receiving 1 million Class B shares, worth just under $500 million apiece, CNBC reported. Those groups are the Sherwood Foundation, run by Susie Buffett, the Howard G. Buffett Foundation and the NoVo Foundation, run by Peter Buffett.

Buffett, who turns 96 next month, still owns Berkshire stock worth more than $140 billion, according to CNBC. If Berkshire’s share price did not rise from here, distributing that stake over roughly eight years would imply annual gifts of at least $17 billion. CNBC said that would be more than twice the roughly $7 billion in Berkshire stock Buffett donated last year.

The new timing also raises questions about the pattern of Buffett’s giving later this year. CNBC noted that Berkshire’s release did not say whether Buffett will make additional family foundation gifts around Thanksgiving, as he has in each of the past four years. Those contributions totaled about $1.3 billion last year, according to CNBC.

Gates Foundation no longer included

The Gates Foundation is not part of this latest plan. CNBC reported that Buffett’s new distribution excludes further gifts to the charity created by Bill Gates and Melinda Gates, ending a donation arrangement Buffett announced in 2006.

At that time, Buffett said he was making an annual gift commitment of Berkshire Class B shares for the Gates Foundation’s benefit as long as Bill or Melinda Gates remained alive and active in the foundation’s policy and administration. Based on the 2006 schedule, CNBC said the Gates Foundation had been due to receive nearly $4.5 billion in Berkshire stock this month.

The Wall Street Journal reported earlier this month that Buffett was holding back a scheduled donation to the Gates Foundation while a law firm reviewed the charity’s ties to Jeffrey Epstein, with results expected this summer. CNBC also reported that Buffett told CNBC in March he had not spoken to Bill Gates since the matter was disclosed and would “wait and see what unfolds” before deciding on future giving to the foundation.

Buffett’s past gifts to the Gates Foundation have been large. CNBC reported that over nearly two decades, those donations totaled almost $48 billion based on the value of the shares at the time of transfer. The nearly 321 million Berkshire shares donated to the foundation would be worth about $159 billion today, CNBC said, though the foundation has sold most of them over the years to fund its operations.

This story draws on original reporting from CNBC.