Berkshire Hathaway Chairman Warren Buffett is no longer making large annual charitable donations to the Gates Foundation, saying Bill Gates' association with the late sex offender Jeffrey Epstein is distasteful.
Buffett said in an interview: "Since January this year, I have carefully read a large number of relevant reports about Bill's dealings with Epstein. This matter is indeed uncomfortable. He made mistakes, but I also made mistakes. I have also hired all kinds of people and made all kinds of friends. Only later did I discover that they were completely different from what I originally imagined. There was nothing in the whole thing that I thought I would never do."
Buffett and Gates have known each other for more than 30 years. He said that before adjusting his charitable donation plan, he comprehensively sorted out the relevant information about the relationship between Gates and Epstein. Buffett, 95, will allocate all donations this year to four foundations run by his relatives.
For years, the Gates Foundation has been the largest recipient of Buffett's annual donations to Berkshire. Since 2006, Buffett has donated more than $47 billion worth of Berkshire stock to the charity founded by Microsoft co-founder Gates and his ex-wife Melinda.
Buffett revealed that he and Gates still keep in touch, and the two recently spent a few hours together in Omaha.
"He came to Omaha to visit me three weeks ago. I can't remember the exact date, but it must have been less than three months. We chatted for a full three hours." Buffett said, "He will call me later and we have made an appointment for the next meeting."
Charitable assets will be handed over to children
The "Oracle of Omaha" said his estate plan will give greater philanthropic responsibility to his three children, and he has been gradually cultivating them to shoulder this important responsibility for decades.
"I have completely re-examined my philanthropic layout." Buffett said, "In the past, I donated a huge amount of money to the Gates Foundation. At the time, I thought it was a good choice. I still think this decision was not a bad one today. But at that time, I decided that my children were completely incapable of managing and disposing of such a huge amount of money."
“Now I have clearly told my three children that this charitable asset is at their disposal and it is their responsibility to properly complete the charity work,” he said.
Buffett issued a statement earlier this week saying that as his children grow older, he plans to dispose of all of his Berkshire shares in about eight years.
This year, Buffett will donate 9 million Class B shares to the Susan Thompson Buffett Foundation, named after his late first wife, with a current market value of approximately US$4.5 billion.
The three foundations run by his three children - Susie Buffett's Sherwood Foundation, Howard G. Buffett Foundation, and Peter Buffett's Novo Foundation, each received 1 million Class B shares, worth nearly US$500 million.
Buffett also added that he broke his leg a few weeks ago and underwent surgery and is currently recovering well.