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Warren Buffett, who has amassed a $150 billion personal fortune, made a case against creating "dynastic" wealth as he named three independent trustees to oversee his philanthropy following his children and donated an additional $1.1 billion in Berkshire Hathaway stock to his family's four foundations.
Instead of leaving his three children an enormous inheritance, the 94-year-old legendary investor has long pledged to give away 99% of the fortune he built at Berkshire, the Omaha, Nebraska-based conglomerate he has been running since 1965.
Buffett believes family wealth dynasties could have negative consequences such as eroding personal growth and complicating relationships. Meanwhile, they also create societal uncertainties as it's unforeseeable how future generations choose to distribute such wealth.
"I've never wished to create a dynasty or pursue any plan that extended beyond the children," Buffett wrote in a lengthy letter Monday. "I know the three well and trust them completely. Future generations are another matter. Who can foresee the priorities, intelligence and fidelity of successive generations to deal with the distribution of extraordinary wealth amid what may be a far different philanthropic landscape?"
In other words, he's saying that he'll give money to his kids, just not his grandchildren. Which doesn't actually solve the problem, as we all expected.