Buffet Pulls a Gates, literally

LegendKiller · 06-25-2006, 12:25 PM

http://money.cnn.com/2006/06/25/maga...ex.htm?cnn=yes

It's hard to imagine just giving away $40Bn.

What I find cool about Gates and Buffet is that both were relatively (relatively mind you) "new money". Even though Gates had the trust fund and his family had lots of money, they didn't have tens of billions. Buffet is even more so. Yet, these guys just give it away.

Contrast this with the other people like the Waltons or "old money" that are trying to stop redistribution of wealth. It's an interesting comparison.

I respected W.B. for his investment style and overall outlook on life, but I respect him even more now.

hapoo · 06-25-2006, 02:52 PM

Well i figure, Gates and Buffet EARNED their money. They're not afraid to lose it because they know they have the means to get it back. Old money is sitting on its ass mooching off the work that was done decades ago. They wouldn't even know where to begin if something were to happen to their money.

I really respect both of them and look forward to the changes they will bring about in the world.

DarkFury · 06-25-2006, 02:55 PM

Well you can't take it with you.... so I guess this is a nice way of replanting the seeds from the tree you originally ate from.

I'm just wondering if this may have changed had he had an heir to his empire.

Hoser · 06-25-2006, 04:07 PM

This quote by Warren Buffet gives some insight into his thinking.

"I still believe in the philosophy - FORTUNE quoted me saying this 20 years ago - that a very rich person should leave his kids enough to do anything but not enough to do nothing."

If more rich people had this philosophy, we wouldn't end up with Paris Hilton and others like her.

LegendKiller · 06-25-2006, 04:22 PM

Quote:

Originally Posted by DarkFury

Well you can't take it with you.... so I guess this is a nice way of replanting the seeds from the tree you originally ate from.

I'm just wondering if this may have changed had he had an heir to his empire.

He does have children, none of which are in his line of business. However, there are some really good people at B.H. that could succeed him and do just as well.

LegendKiller · 06-25-2006, 04:23 PM

Quote:

Originally Posted by Hoser

This quote by Warren Buffet gives some insight into his thinking.

"I still believe in the philosophy - FORTUNE quoted me saying this 20 years ago - that a very rich person should leave his kids enough to do anything but not enough to do nothing."

If more rich people had this philosophy, we wouldn't end up with Paris Hilton and others like her.

Agreed. His integrity is impeccible and his investment style is proved beyond measure. Hype is wrong, long is the way to go.

speedracer120 · 06-25-2006, 06:06 PM

I really admire Buffet, if only I'd know his secret to investing other than the obvious go for the long haul.

Chgoman · 06-25-2006, 06:55 PM

Buffet has said pubically before that he belives in earning what you have and that he plans on leaving the vest majority if not all of his money to his charitable foundation and not to his "kids" (who are all over 40 if memory serves me).

kimchicowboy · 06-25-2006, 09:10 PM

Quote:

Originally Posted by Chgoman

Buffet has said pubically before that he belives in earning what you have and that he plans on leaving the vest majority if not all of his money to his charitable foundation and not to his "kids" (who are all over 40 if memory serves me).

i believe you're correct. i think i saw somewhere that one of his sons in is a farmer, no?

i really respect WB for raising his children this way.

yippiekiyeh · 06-26-2006, 02:10 AM

Quote:

Originally Posted by speedracer120

I really admire Buffet, if only I'd know his secret to investing other than the obvious go for the long haul.

Long haul yes... but it can be summed up in three words, "Margin of Safety."

I think his brand of investing is the right brand of investing.

DarkFury · 06-26-2006, 08:39 AM

Quote:

Originally Posted by Hoser

This quote by Warren Buffet gives some insight into his thinking.

"I still believe in the philosophy - FORTUNE quoted me saying this 20 years ago - that a very rich person should leave his kids enough to do anything but not enough to do nothing."

If more rich people had this philosophy, we wouldn't end up with Paris Hilton and others like her.

That being said...I wonder how much he is gonna leave them.

Granted, you can admire the spirit of his gift, but on the flip side, I can't see just cutting out your young'uns completely (not that I'd assume that he would), however Buffet was a tightwad by nature... and really didn't spend hardly any of the fortune he amassed and now even his heirs won't even benefit much from his "hard work".

This kind of announcement almost looks like a "pre-emptive strike" to keep one of the "young'uns from offin' him before he had a chance to state how we wanted his estate divided.

(I'm kidding BTW... sorta

)

brainsmile · 06-26-2006, 08:46 AM

guess i'll have to go set up some charities now... pander to the rich

LegendKiller · 06-26-2006, 09:43 AM

Quote:

Originally Posted by DarkFury

That being said...I wonder how much he is gonna leave them.

Granted, you can admire the spirit of his gift, but on the flip side, I can't see just cutting out your young'uns completely (not that I'd assume that he would), however Buffet was a tightwad by nature... and really didn't spend hardly any of the fortune he amassed and now even his heirs won't even benefit much from his "hard work".

This kind of announcement almost looks like a "pre-emptive strike" to keep one of the "young'uns from offin' him before he had a chance to state how we wanted his estate divided.

(I'm kidding BTW... sorta

)

He will give them enough to let them live comfortably I am sure, they won't be wastrels like the Hiltons or their ilk. He might have been a tightwad, but he took B.H. from being almost bankrupt and ruined to being one of the premier investment companies in the world with returns far in excess of investments of the same risk category.

DarkFury · 06-26-2006, 11:24 AM

Quote:

Originally Posted by LegendKiller

He will give them enough to let them live comfortably I am sure, they won't be wastrels like the Hiltons or their ilk. He might have been a tightwad, but he took B.H. from being almost bankrupt and ruined to being one of the premier investment companies in the world with returns far in excess of investments of the same risk category.

Well that is understandable... but honestly, you can't even compare his kids to the Hiltons. Those Hiltons didn't have to do anything... yet they have it made. However, that being said, Buffet has lived a lifetime and his kids are pretty much grown now (and not "social debutantes" like the Hilton kids), therefore I don't think that the money would make them into the beasts of fashion and glitz that the Hiltons are. So just go ahead and help those members out so that they can "expand the empire" so to speak. But then again, maybe in his mind, such thoughts of actually "enjoying your money" are despicable which is why he'd rather give the cash away rather than see his kids do things with it that he'd never do himself.

Besides, there is nothing wrong with being "financially prudent", however if you never get to enjoy any of the spoils of your efforts, it sure as heck seems like a waste to me. Being "frugal" is one thing... but being a "tightwad/miser" is quite another. Buffett chose to be a tightwad... and even if he did spend some money here and there, he'd still be a very rich man. "The love of money" and not money itself is the root of all evil.. so maybe his late "gift to charity" is a last ditch effort for him to get into heaven or something

(for those who believe in these teachings) so that his final judgement won't be based on his accumulation of great wealth without utilizing its power.

Even Bill Gates spent some of his fortune on himself... just look at his biometric house that he lives in (it actually adjusts the temperature and ambient preferences to each individual occupant). However, last I heard, Buffett is still living in the same house that he bought almost 50 years ago for about $30K. Pretty much I'd think that the still has the first dollar he ever made.

But hey, that's just my own opinion and "speculation" on it.

nickel · 06-26-2006, 12:10 PM

i think more of the guy who gives away his fortune silently instead of a guy clamoring for all this notoriety while he's alive.

Quote:

Grocer quietly gave away millions
June 23, 2006, 5:25 PM EDT

BUFFALO, N.Y. -- The modest man behind the counter at Kaminski's Deli for more than 50 years was actually a very wealthy man _ but it was a secret to all but his family and the beneficiaries of his generous spirit.

Waldemar Kaminski died at home Wednesday at the age of 88 after a long illness.

His death freed those who knew him to reveal his philanthropic side.

"He didn't want anyone to know him, but I just had to thank him," said Anne Gioia, co-founder of the Roswell Park Alliance Foundation, which received several million dollars from Kaminski. "Now I think we should shout it from the rooftops."

The grocer made his fortune in the stock market, investing his hard-earned money over the course of a lifetime. The sole luxury in the unadorned flat above his stand was the computer he used to track his investments.

"Sometimes I feel so guilty that there's so much, and it's just me," he said to Cindy Eller, vice president for development at Roswell Park.

"He felt that if you died a wealthy person, you had not lived a worthwhile life," Gioia said. "I don't think he had any regrets."

The Roswell Alliance is a nonprofit organization that funds cancer research and education.

Kaminski also gave handsomely to the Father Baker Home, Salvation Army, Hilbert College and Camp Good Days and Special Times. He helped neighbors with mortgage payments, college tuition and lines of credit at his stand.

"It wasn't a handout. He was supportive and helped them maintain their dignity," said one of his nieces, Marsha Kaminski of Oakland, Calif.

"If they were helping themselves, he wanted to help, too," Eller said.

He kept his giving quiet because of his humble nature and for his safety. Kaminski had been beaten and robbed several times over the years and worried revealing his wealth would make him an even more appealing target.

Born July 23, 1917, in the Albany area, Kaminski came to Buffalo in 1927 when his family opened a small grocery store in the Broadway Market. At age 17, he opened two food stands of his own, working as many as 18 hours a day.

He turned down a college scholarship so his late brother, Dr. Chester Kaminski, could go to medical school.

His grocery career was interrupted only once, when he joined the Army during World War II. As a first sergeant, Kaminski trained more than 1,200 men between 1941 and 1946.

"He led a very clean, beautiful, uncomplicated life," Gioia said. "He was a true philanthropist in every sense of the word."

Those who knew Kaminski said he felt most fulfilled when he was giving back. "He didn't need the material things for happiness. He enjoyed just being with people and doing what he could for them," Marsha Kaminski said.

"When he sat in the park and watched others, that was his gift to himself," Eller said.

http://www.newsday.com/news/local/wi...gion-apnewyork

kimchicowboy · 06-26-2006, 02:50 PM

i never saw buffet as a guy clamoring for notoriety myself.

nickel · 06-26-2006, 03:15 PM

Quote:

Originally Posted by kimchicowboy

i never saw buffet as a guy clamoring for notoriety myself.

i was speaking of the way in which he is giving away his money with all the publicity compared to someone like the guy in the article i posted.

Butch · 06-26-2006, 03:33 PM

Quote:

Originally Posted by nickel

i was speaking of the way in which he is giving away his money with all the publicity compared to someone like the guy in the article i posted.

I'll tell you for sure when I know firsthand, but I don't think it's possible to give away the GDP of a small country without drawing attention.

He also has to make it publicly known and offer full disclosure, because the gift is in the form of shares in a publicly traded company that he is clearly an insider of.

LegendKiller · 06-26-2006, 05:41 PM

Quote:

Originally Posted by Butch

I'll tell you for sure when I know firsthand, but I don't think it's possible to give away the GDP of a small country without drawing attention.

He also has to make it publicly known and offer full disclosure, because the gift is in the form of shares in a publicly traded company that he is clearly an insider of.

Very good point, one that I hadn't thought of. He is gifting a massive portion of B.H., which he does have to disclose.

It would come out somehow, Forbes would have ferreted out when doing their rankings. There is no way you can make the largest single donation and history and go unnoticed.

Chgoman · 06-27-2006, 09:27 AM

One thing that is interesting is that with all the stock he is giving and the provision that the funds be used within 2 years of the gift, it seems like that would put a lot of selling pressure on the stock over the next few years. It's not a hugely traded stock because of the price per share and with the need to sell hundreds of thousands of shares to free up the funds for the charity, it creates an interesting scenario.

06-25-2006, 12:25 PM	#1
LegendKiller Vice Admiral Join Date: Jun 2002 Location: Northern VA Posts: 4,927	Buffet Pulls a Gates, literally http://money.cnn.com/2006/06/25/maga...ex.htm?cnn=yes It's hard to imagine just giving away $40Bn. What I find cool about Gates and Buffet is that both were relatively (relatively mind you) "new money". Even though Gates had the trust fund and his family had lots of money, they didn't have tens of billions. Buffet is even more so. Yet, these guys just give it away. Contrast this with the other people like the Waltons or "old money" that are trying to stop redistribution of wealth. It's an interesting comparison. I respected W.B. for his investment style and overall outlook on life, but I respect him even more now.

06-25-2006, 02:52 PM	#2
hapoo Fleet Admiral Join Date: Jan 2000 Location: 742 Evergreen Terrace, Springfield USA Posts: 9,276	Well i figure, Gates and Buffet EARNED their money. They're not afraid to lose it because they know they have the means to get it back. Old money is sitting on its ass mooching off the work that was done decades ago. They wouldn't even know where to begin if something were to happen to their money. I really respect both of them and look forward to the changes they will bring about in the world. __________________

06-25-2006, 02:55 PM	#3
DarkFury Secretary of the Navy Join Date: Feb 2001 Location: Chillin' N Da 'Hood Posts: 34,997	Well you can't take it with you.... so I guess this is a nice way of replanting the seeds from the tree you originally ate from. I'm just wondering if this may have changed had he had an heir to his empire. __________________ DarkFury's Pimptopia - Don't Hate the Playa, Hate the Game! Home of the Original OG Pimp (accept NO imitations)

06-25-2006, 06:06 PM	#7
speedracer120 Rear Admiral Upper Half Join Date: Mar 2000 Location: HB,CA/PA Posts: 3,437	I really admire Buffet, if only I'd know his secret to investing other than the obvious go for the long haul. __________________ Off in La La Land

06-26-2006, 08:46 AM	#12
brainsmile Chief of Naval Operations Join Date: Jun 2000 Location: woah... why is welfareloser here with me so early in the morning and more importantly why am I wearing her clothes?!? Posts: 13,754	guess i'll have to go set up some charities now... pander to the rich __________________ ********************************** DCM #1 (Founder) "Nobody beats Vitus Gerulaitis 18 times in a row." - Vitus Gerulaitis on beating Jimmy Connors after 17 failed attempts.

06-25-2006, 04:07 PM	#4
Hoser Commander Join Date: Apr 2000 Location: Omaha, NE, United States Posts: 1,275	This quote by Warren Buffet gives some insight into his thinking. "I still believe in the philosophy - FORTUNE quoted me saying this 20 years ago - that a very rich person should leave his kids enough to do anything but not enough to do nothing." If more rich people had this philosophy, we wouldn't end up with Paris Hilton and others like her.

06-25-2006, 06:55 PM	#8
Chgoman Lieutenant Commander Join Date: Apr 2002 Location: Mission Viejo, CA Posts: 696	Buffet has said pubically before that he belives in earning what you have and that he plans on leaving the vest majority if not all of his money to his charitable foundation and not to his "kids" (who are all over 40 if memory serves me).

06-26-2006, 02:50 PM	#16
kimchicowboy Admiral Join Date: May 2000 Location: in the middle of the pacific ocean Posts: 5,344	i never saw buffet as a guy clamoring for notoriety myself.

06-27-2006, 09:27 AM	#20
Chgoman Lieutenant Commander Join Date: Apr 2002 Location: Mission Viejo, CA Posts: 696	One thing that is interesting is that with all the stock he is giving and the provision that the funds be used within 2 years of the gift, it seems like that would put a lot of selling pressure on the stock over the next few years. It's not a hugely traded stock because of the price per share and with the need to sell hundreds of thousands of shares to free up the funds for the charity, it creates an interesting scenario.

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