Bill Gates' Foundation Was Snubbed by Warren Buffett for the First Time in 20 Years. Buffett Is Now on Track to Offload His Entire $140 Billion Berkshire Stake by 2034.

Warren Buffett has shifted his charitable giving strategy for the first time in two decades, directing his entire $140 billion Berkshire Hathaway stake to foundations run by his children rather than the Bill & Melinda Gates Foundation. The Oracle of Omaha plans to complete this transfer by 2034.

The move marks a significant departure from Buffett's 20-year partnership with the Gates Foundation and could reshape Berkshire's capital allocation strategy. The succession to his children's foundations may pressure Berkshire to initiate or expand dividend payments to fund their philanthropic operations—a shift from Buffett's longstanding preference for retaining earnings and reinvesting in the business.

Berkshire currently pays only a nominal dividend on its Class A and Class B shares. If the new foundation structure requires regular cash distributions to support charitable giving, management may need to adjust its capital return policy. This could represent one of the most material changes to Berkshire's financial strategy in decades, potentially affecting the stock's valuation multiple and appeal to different investor classes.