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Warren Buffett speaks out against creating family wealth dynasties, gives away another $1.1 billion

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Warren Buffett

David A. Grogan | CNBC

Warren Buffett, who has amassed a $150 billion personal fortune, made a strong case against creating “dynastic” wealth as he named three independent trustees to oversee his philanthropy following his children and donated another $1.1 billion in Berkshire Hathaway stock to four family 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 started 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?”

Successor trustees named

The “Oracle of Omaha,” who owns about 37.6% of Berkshire Class A shares, said the assets he’s collected may take longer to deploy than his children live. He has appointed three trustees of his charitable trust to potentially succeed his children in disbursing his wealth. Buffett’s children are now 71, 69 and 66.

“Three potential successor trustees have been designated. Each is well known to my children and makes sense to all of us. They are also somewhat younger than my children,” Buffett wrote. “But these successors are on the wait list. I hope Susie, Howie and Peter themselves disburse all of my assets.”

The identity of the trustees was not revealed.

Buffett has been making annual donations to four family foundations since 2006. He said he’s built strong trust in his children’s managerial ability and philanthropic ambition through years of observation.

“The 2006-2024 period gave me the chance to observe each of my children in action and they have learned much about large-scale philanthropy and human behavior,” he said. “They enjoy being comfortable financially, but they are not preoccupied with wealth. Their mother, from whom they learned these values, would be very proud of them. As am I.”

Buffett’s Berkshire, which pierced a $1 trillion market cap this year, owns a vast array of well-established businesses, ranging from its crown jewel Geico insurance to BNSF Railway to consumer brands like Dairy Queen and See’s Candies.

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Ken Griffin’s flagship hedge fund at Citadel climbs 15.1% in 2024

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January 2, 2025

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Ken Griffin, founder and CEO of Citadel, speaks during The New York Times’ annual DealBook Summit in New York City, Dec. 4, 2024.

Michael M. Santiago | Getty Images

Billionaire investor Ken Griffin’s handful of hedge funds at Citadel all posted double-digit returns in 2024, led by its tactical trading strategy.

Citadel’s multistrategy Wellington fund, its largest, finished the year up 15.1%, according to a person familiar with the returns. All five strategies used in the flagship fund — commodities, equities, fixed income, credit and quantitative — were positive for the year, the person said.

The Miami-based firm’s tactical trading fund was the standout performer with a 22.3% return for 2024, the person said. Citadel’s equity fund returned roughly 18%, while its global fixed income strategy gained 9.7% last year.

Citadel declined to comment. The hedge fund giant had $66 billion in assets under management as of December.

The stock market just closed out a banner year with the S&P 500 surging 23.3%, building on a gain of 24.2% in 2023. The two-year gain of 53% is the best since the nearly 66% rally in 1997 and 1998.

Griffin recently criticized the steep tariffs President-elect Donald Trump has vowed to implement, saying crony capitalism could be a consequence.

The CEO also said he’s not focused on taking Citadel Securities public in the foreseeable future. The securities firm is a Miami-based market maker founded by the 56-year-old Florida native in 2002.

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