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nlitened 4 hours ago

As I understand, the son is there not to lead the company (Greg Abel is the CEO), but to oversee their family's share in the enterprise.

jjallen 2 hours ago | parent | next [-]

He's there to maintain the very unique culture of the company. I think it's sort of like if they have his son there he of all people should know Buffett's/Berkshire's culture and be able to best maintain it. He's got a few years to figure out a successor. But yeah this is mostly about the unique culture they have.

WarmWash 2 hours ago | parent | next [-]

He also has been on the board since 1993. So it's not like his son is walking in today as the new guy.

He was elected by the board too, rather than directly placed by Warren.

koolba 2 hours ago | parent [-]

> He was elected by the board too, rather than directly placed by Warren.

I don’t think the last name hurt his chances in 1993 either.

jjallen 2 hours ago | parent [-]

You would want someone who is intimately familiar with the culture to be involved for a long time in case something happened to Warren.

thundercleeze an hour ago | parent [-]

I imagine there were some other candidates in 1993 that didn't share Buffet's genetics.

Waterluvian 2 hours ago | parent | prev [-]

Does this actually work or is this just the best option he's got given he cannot live forever?

yuuu 4 hours ago | parent | prev | next [-]

I thought he was giving away 99% of his wealth?

crossroadsguy 2 hours ago | parent | next [-]

Rich people donate for tax and the ultra-rich donate without actually donating it :)

sarjann 3 hours ago | parent | prev | next [-]

Probably in a charitable trust that will be managed by the family. With the trust owning the shares.

nostrademons an hour ago | parent [-]

He was giving it to the Gates Foundation for Bill & Melinda Gates to manage, but that deal went into limbo when Bill showed up in the Epstein files and Melinda divorced him.

csdreamer7 an hour ago | parent [-]

The money he is giving away is going to foundations managed by his children (last I read).

nostrademons 43 minutes ago | parent | next [-]

That's recent, just as of the last couple months. Historically the children's foundations have been a sideshow and he's given the bulk of his wealth away to the Gates Foundation. You can see that from the dollar amounts: this year's gift to the children's foundations was 1M BRK-B shares (the equivalent of about $500M) to each, while he's given away a total of $66B, over 120x as much.

bluGill 29 minutes ago | parent | prev [-]

Though unlikely the case here, family foundations should always be looked at as a likely source of corruption.

You cannot bribe me directly - that would be caught. However you can donate money to my family foundation and my kids (or spouse) will draw a large salary from it while doing almost nothing and they do some good for the world so it looks like a charity. Of course the kids/spouse will support me in various ways that all rich kids will.

Again, probably not what is happening here, but every time you hear of a family foundation you should ask who they are using it to corruption in some form. Even when it doesn't seem to be you should still look.

apothegm 3 hours ago | parent | prev | next [-]

Still leaves an absurd amount of wealth to manage.

JauntTrooper an hour ago | parent | prev | next [-]

1% of $140 billion is still $1.4 billion.

al_borland 2 hours ago | parent | prev | next [-]

That’s now in limbo

https://www.yahoo.com/news/politics/articles/warren-buffett-...

DennisP 2 hours ago | parent [-]

Plenty of other charities in the world. Just because he stopped giving to the Gates Foundation over Epstein ties doesn't mean he won't send the money somewhere else.

Waterluvian 2 hours ago | parent | prev | next [-]

Most of them seemingly have control problems where even if they do, it is in the form of a giant money pile still under their control that they give away the returns of, usually also completely under their control.

toomuchtodo 2 hours ago | parent [-]

What's interesting is they cannot, but their ex partners go much further in their giving (Melinda French, MacKenzie Scott, for example).

Waterluvian 2 hours ago | parent [-]

I wonder if there's a survivorship bias there: those who can and do reject the status quo.

toomuchtodo 2 hours ago | parent [-]

My hot take is that men with extreme wealth and power are desperate to keep it as part of their identity, where the women I mentioned do not have the same character and personality flaws, and therefore use it as a tool to do good because they are not optimizing for status, power, and wealth: they are optimizing to do good. Doesn't always hold, there are exceptions.

"Power tends to corrupt and absolute power corrupts absolutely. Great men are almost always bad men, even when they exercise influence and not authority; still more when you superadd the tendency of the certainty of corruption by authority." -- Lord Action

DennisP 2 hours ago | parent | next [-]

One giant exception was Chuck Feeney, who made $8 billion on duty free shops and gave almost all of it away, much of it anonymously. By the end of his life he and his wife had a couple million and lived in a rented apartment.

idiotsecant 22 minutes ago | parent | next [-]

Giving away your fortune in secret is so much more virtuous than doing it with a giant foundation with your name on it. Much respect.

toomuchtodo 2 hours ago | parent | prev [-]

https://en.wikipedia.org/wiki/Chuck_Feeney

https://en.wikipedia.org/wiki/Atlantic_Philanthropies

https://hn.algolia.com/?dateRange=all&page=0&prefix=false&qu...

Great human, thanks for mentioning.

seki285 an hour ago | parent | prev | next [-]

There's a difference in men and women... until there's not. Very convenient.

toomuchtodo an hour ago | parent [-]

There's a large body of medical research around women having more empathy than men, specifically around brain volume in the inferior frontal gyrus. Does it always hold? There are always exceptions. Broadly speaking, in most cases, it is a function of brain structure, per person. Do you have many examples of exceptional wealthy and powerful women who are monsters? I do not. I welcome corrections and citations, and am happy to be proven wrong on this.

TLDR Show me the brain fMRI and I will show you the soul. In some cases, facial structure is enough for weak but meaningful signal (as a proxy for brain structure).

(politics are also brain structure, citations in https://news.ycombinator.com/item?id=48634883)

IncreasePosts an hour ago | parent | prev [-]

I think more likely is that bill and Jeff built their wealth through their businesses, which they are still directly involved in. Giving away their wealth would be equivalent to giving away the business they built from the ground up

I think there's also a question of efficacy. Bill and Jeff are really good at turning $1 into $10. Melinda and Mackenzie? Not so much. If bill or Jeff wanted to maximize the amount they can give, the best strategy would be for them to continually earn until they die, and then donate it.

toomuchtodo 42 minutes ago | parent [-]

I agree that Bill and Jeff are better at exploitation at scale. That’s how you become that wealthy. We are lucky they’re divorced and the wealth is in the hands of better stewards to distribute it to do good.

bragr 3 hours ago | parent | prev | next [-]

Well he's not dead yet.

Betelbuddy 2 hours ago | parent [-]

That is what I told the tax man...they did not buy it...

u1hcw9nx 3 hours ago | parent | prev | next [-]

He has. His family manages the foundation that owns BRK stock.

infecto 3 hours ago | parent [-]

Isn’t that the usual loophole though? He definitely continues to donate large amounts but I always question setting up a trust that the kids run.

traviswingo 3 hours ago | parent | next [-]

It’s not really a “loophole,” it’s a standard way to give away absurd sums of money.

Have you ever tried to donate billions of dollars? It’s actually extremely difficult.

You have to find causes you’re passionate about/things that society needs, find the correct charities to give the money to, make sure your money actually goes towards the thing they say it will (this is difficult), and then figure out how much you can actually donate (you can’t just give N dollars to company Y. They’ve got zero experience managing that much money, and no way to scale into doing it efficiently.)

What happens then is you have $100b to donate, and mostly only do it $10m at a time or less.

Warren’s kids are old now. They’ve all been donating money for YEARS (it’s a mandatory part of their trust).

So yeah, you receive tax benefits by transferring shares to a foundation you also control, but that money is now earmarked for charity. It doesn’t flow both ways, and the laws on this are very tight (bad actors will find a way, but what’s new?).

infecto 2 hours ago | parent | next [-]

Sure that is the typical way to donate your wealth but there are many other ways than giving it with control to your children. I have no judgement but doing it this way is a nice way to move money within your family.

Everyone does it different and I have no judgement but you could just as easily pick a quorum of folks to do the job with a very explicit timeline. Charitable donations are quite broad in the US. So sure lots of wealthy folk don’t this way but not everyone!

mvc an hour ago | parent | prev [-]

If it's so difficult, maybe they could take the easy option and, you know, properly fund the government to build the shared infrastructure on which we all rely by paying tax proportional to their wealth.

macintux an hour ago | parent | next [-]

https://www.investopedia.com/warren-buffett-paid-billions-to...

dsl an hour ago | parent | prev [-]

Warren Buffet made the largest single tax payment in US history last year. He doesn't play any games.

Grombobulous 3 hours ago | parent | prev [-]

Right, donating your present wealth because you expect to continue receiving an astronomical amount of wealth in perpetuity through your company ownership is not all that grand of a gesture.

Certainly better than many alternatives, but it’s not a gesture that should make the median income person feel like existing as an excessively wealthy person should be okay/legal.

In my opinion, personal wealth/asset control above a certain level deemed excessive (perhaps $100 million then adjusted for inflation moving forward) should be taxed at 100% and put into a special fund intended to help pay for social services, healthcare, housing the homeless, etc. In the case of asset control perhaps a good method would be to distribute excessively valued ownership stakes to employees or random members of the public (e.g., many of Elon Musk’s shares in his companies forfeited and distributed to others).

idiotsecant 20 minutes ago | parent [-]

This makes sense as long as public control makes the outcome of that money better than letting the bazillionare control it. I'm not sure which way the actual truth tilts, but I suspect it's sometimes one and sometimes the other.

mrlonglong 3 hours ago | parent | prev | next [-]

Can he give me a few million then?

ozim 2 hours ago | parent | next [-]

Few million?

I would be set for the rest of my life if I got half a mill falling from sky today, I guess I could even make it work with 250k.

Currently I am pondering how absurd amount of money a billion of dollars is. When loads of people can only -earn and eat through/spend not save- $1 million; working their asses off for something like 20 years.

david-gpu 2 hours ago | parent [-]

For what it is worth, if you want your withdrawals to last for decades, then you are limited to around a yearly inflation-adjusted cap of around 3% of the original principal per year, gross of taxes, if you invest in low-cost passive index funds. That is a budget of $30K/year for every million you have invested in the market.

If you are interested, the /r/fire and /r/financialindependence subreddits are useful.

andrewstuart 3 hours ago | parent | prev [-]

And me please. 2 mill.

iso1631 3 hours ago | parent | prev | next [-]

Still leaves $1.5b, that's a hell of an income if you stick it in any widespread passive fund, and still 100 times more than even the 1% mark in the US.

Betelbuddy 2 hours ago | parent | prev | next [-]

Yes the Billionaires pledge...a masterpiece of public relations...or he could have have paid more taxes than his Secretary...but he never did...

hshdjdjdif 3 hours ago | parent | prev [-]

he is giving 99% to the buffet family foundation ofc

mgfist 3 hours ago | parent | prev [-]

> but to oversee their family's share in the enterprise

Not exactly, he's there to oversee the culture of Berkshire and ensure it's continuity. Buffett is donating all of his wealth (and has already donated $66B), so there isn't a fortune to protect.

Berkshire is an institution of sorts at this point, and requires strong stewardship to prevent enshittification (for lack of a better word).

almostarockstar 3 hours ago | parent | next [-]

Some better words just off the top of my head:

- to prevent institutional degradation.

- to avoid cultural shift for the worse.

- to keep hold of and nurture that culture.

donut an hour ago | parent | next [-]

Those phrases soften what happens too much.

idiotsecant 19 minutes ago | parent | prev [-]

no, enshittification is accurate.

rayiner 3 hours ago | parent | prev [-]

And this is how you get constitutional monarchy.