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Buffett: Gates' charity 'surest way' to helping(Omaha World-Herald (NE) (KRT) Via Thomson Dialog NewsEdge) Jun. 27--NEW YORK -- With Bill and Melinda Gates at his side, Warren Buffett on Monday described his plan to dramatically ramp up their already multibillion dollar charitable foundation as a sensible move to get the most bang for his buck. Buffett, chairman and chief executive of Omaha's Berkshire Hathaway Inc. and the second-richest man in the world, said at a packed press conference in a New York hotel that "I'm better at managing money than most people," prompting Gates, the No. 1 richest, to nod his head vigorously. But as he pondered what to do with the fortune after the death of his wife, Susan, Buffett said he came up with a "sensational solution." He would donate the majority of his money, about $31 billion, to the Bill & Melinda Gates Foundation, whose track record and goals he greatly admires in its focus on improving world health and American education. He plans to donate about $6 billion more to four family foundations. "I've got some people who I say can give it away better than I can," Buffett said. "I think this is the best way, personally, to have $40-odd billion invested as the surest way to getting a good result." Gates, the founder of Microsoft Corp., said he and his wife are thrilled at Buffett's move, the largest charitable contribution in history. Melinda Gates said they were "absolutely humbled by Warren's gift." That was how the cheerful super-tycoons launched a modern-day philanthropic endeavor similar to that of the storied Carnegie or Rockefeller families of a century ago, who built schools and libraries and endowed charities nationwide. Earlier in the day, at a town hall discussion with Buffett at the New York Public Library, the Gateses set a bold goal for a foundation that will double in size as the world's largest. They aim within their lifetimes to make all American schools great and to eradicate the top 20 diseases such as AIDS, malaria and tuberculosis. "Can that be done in our lifetime?" Bill Gates said. "I'll be optimistic and say, absolutely." Buffett, whose decision to donate most of his money was revealed Sunday in a Fortune magazine article, endorsed their goals and jokingly said he would ask for a status report only every day or so. He joined the Gateses in New York on Monday to talk about what the money will be used for, the value of philanthropy for society and to encourage other wealthy people to also give their money to charities. At the library, Buffett signed and presented letters of intent to donate to the Gates Foundation, as well as to a foundation he set up with his late wife and those headed by his three children. His children hugged him, as did Melinda Gates. Bill Gates shook his hand as an audience of 600 people cheered. "Don't lose that letter!" Bill Gates said, handing his signed copy to an aide. Looking on were representatives of groups that work with the Gates Foundation, members of other foundations, educators, school students and philanthropists such as David Rockefeller. In a question-and-answer session, Buffett and the Gateses were repeatedly praised for their generosity, yet several questioners wondered whether the beefed-up foundation could handle the influx of cash. Buffett described it as a "great day for me and my family." For him, he said, it was a much tougher problem deciding how to give away his money than to amass it. Over the last few years, Buffett said, he often has cited the Gates Foundation as a model of philanthropy. He heard Bill Gates talk about the foundation's work several years ago at the Greenbrier Resort in West Virginia and was impressed by the enthusiasm he and his wife have for trying to do the most good for the most people, Buffett said. He was introduced to Bill Gates in 1991 and had shared countless games of bridge with him. So it was natural, Buffett said, to give most of the money to the Gateses rather than try to expand his own foundation or to give it to other foundations. He said he hoped that several early partners in Berkshire Hathaway who also had made fortunes would follow his lead and donate to charities of their choice. "They'd shoot me if I gave their names," Buffett said with a chuckle. Buffett, who owns about 32 percent of Berkshire, will earmark 10 million shares of Class B stock for the Bill & Melinda Gates Foundation and will donate about $1.5 billion worth of the shares to the foundation each year. That will roughly double the amount of money the Gates Foundation has to donate to its causes. He said that he didn't think his contributions would harm Berkshire and that he wouldn't have made them if he thought they would. He said he still loves running the company and, at age 75, has no plans to stop anytime soon. Receiving so much new money is an "almost scary" prospect, said Gates, who with his wife started the Gates Foundation with billions he'd made through Microsoft. "If I make a mistake with my money, it doesn't feel the same as if I do with Warren's money," he said. Gates and his wife pledged to try to make wise choices. But the trio said that one value of a foundation was that it could take risks that might fail in an effort to address major problems in society. Melinda Gates said she hoped that 50 to 100 years from now people would think of "the Oracle from Omaha" as history's most generous philanthropist. Her husband added that Buffett was "the world's greatest investor for good." For his part, Buffett said he was lucky to have been born in America. "I was wired in a way that paid off disproportionately in this economy. All along the way, though, I felt it should go back to society." He said he left each of his children enough money so they never had to worry but that he is not an "enthusiast for dynastic wealth." |