A 96-year-old American named Ruth Gottesman announced on Monday that she would donate $1 billion worth of Berkshire Hathaway shares, which was an unexpected legacy left to her by her late husband when he died in 2022.
Gottesman's husband, David "Sandy" Gottesman, began his career in the 1960s as a friend of Warren Buffett, making him one of Berkshire Hathaway's earliest investors, according to Foundation Guide. He later founded his own investment firm, First Manhattan Co., which is now run by his son.
When David died in 2022, the amount of wealth he left behind surprised even his wife. "He left me an entire portfolio of Berkshire Hathaway stocks without my knowledge," Ruth said in an interview, telling her to "do what you think is right."
Initially, Ruth didn't know what to do with this huge inheritance, but this week she made the decision to donate all the money to the Albert Einstein College of Medicine in the Bronx, the poorest borough of New York City.
"I want to sponsor Einstein College students so they have free tuition," Ruth said.
The Albert Einstein College of Medicine said in a news release that Ruth's gift is so large that the money will pay for the medical students' tuition in perpetuity. All current fourth-year students will receive reimbursement for spring 2024 tuition, and starting in August, all current and future students will attend for free.
Gottesman personally announced the news to current students at the medical school on Monday morning local time. The video showed that when she said the words "free tuition", students in the auditorium burst into cheers, people applauded enthusiastically, jumped from their seats, and some even cried.
Ruth Gottesman is clinical professor emeritus of pediatrics at the Albert Einstein College of Medicine, where she began her career in 1968, according to a press release from the school. From 2007 to 2014, she served as chairperson of the school board.
According to reports, one year of tuition at the Albert Einstein College of Medicine exceeds $59,000, and many graduates have debts in excess of $200,000.