Buffett leaves Gates Foundation out of latest Berkshire stock gifts

Warren Buffett is sending this year’s Berkshire Hathaway stock donations entirely to four foundations tied to his family, leaving out the Gates Foundation after years in which it received the largest share of his annual gifts. For everyday Berkshire investors, the move does not change the company’s operating business, but it does matter because Buffett’s stock-giving plan is one of the clearest windows into how the 95-year-old chairman is reducing his personal stake over time.

Berkshire Hathaway said Buffett will donate 12 million Class B shares in total. A stock gift means Buffett is transferring shares rather than cash, allowing the receiving foundations to hold or later sell the stock to fund their charitable work.

The company said 9 million Class B shares will go to the Susan Thompson Buffett Foundation. The Sherwood Foundation, the Howard G. Buffett Foundation and the Novo Foundation will each receive 1 million shares, according to Berkshire.

The Gates Foundation was not included in the latest annual distribution. CNBC reported that the foundation, created by Bill Gates and Melinda French Gates, had for years been the biggest recipient of Buffett’s yearly Berkshire donations. Since 2006, Buffett has given more than $47 billion worth of Berkshire stock to the organization, according to CNBC.

A shift in a long-running pledge

The omission stands out because Buffett’s relationship with the Gates Foundation had been central to his philanthropic plan for two decades. In a 2006 letter to Bill and Melinda Gates, Buffett said he was “irrevocably committing” to make yearly gifts of Berkshire shares to their foundation “throughout my lifetime,” as long as at least one of them remained actively involved in the organization.

The Wall Street Journal reported that Buffett had paused his usual gift to the Gates Foundation while waiting for the results of a review into the foundation’s connections to Jeffrey Epstein, the late sex offender. CNBC also reported that Buffett discussed the matter in a March interview with Becky Quick.

In that interview, Buffett said he had not spoken with Gates “at all since the whole thing was unveiled,” according to CNBC. Asked whether the two were still close friends, Buffett said they had shared “great times together,” but added: “Until it gets cleared up ... I just don’t think it makes sense to do a lot of talking.”

Buffett’s timetable for giving away Berkshire shares

Buffett framed the latest donations as part of his broader plan to give away his Berkshire holdings. In the statement announcing the gifts, he said: “My goal is to dispose of all of my Berkshire shares within about eight years.”

He linked that timetable to the ages of his children, who are involved in carrying out his estate and philanthropic plans. “As I explained last year, my children are unfortunately growing older. I have every hope that the three of them are able to carry out the disposal of my shares by December 31, 2034,” Buffett said in the statement.

Berkshire said Buffett is expected to discuss the annual donations Wednesday on CNBC’s “Squawk Box.”

This story draws on original reporting from CNBC.