Berkshire Hathaway CEO Warren Buffett announced his retirement plans on the third of this month, claiming that he’d transition out of his position by the end of the year. The 94-year-old multibillionaire has headed up Berkshire Hathaway effectively since 1965. Buffett went on to sing Greg Abel’s praises, officially recommending him for the CEO position.
Berkshire Hathaway is a multi-industry conglomerate that invests in and starts up companies of interest. It’s a holding company. Berkshire Hathaway was founded in 1839 by Oliver Chace. Back then, it was a textile manufacturing company. Nearly 200 years later, it’s the world’s largest holding company.
Warren Buffett’s career is considerably unique, but his lifestyle decisions are exceptionally unrecognizable from those of other billionaires. The man became a billionaire in 1985 at the age of 55, but can be seen driving around a 2014 Cadillac XTS, retailing for $8,000-$16,000 brand new.
Despite such a successful career with a net worth of 160.2 billion USD, the billionaire has been quoted as living quite modestly. Aside from driving an 11-year-old Cadillac, Buffett lives in a quaint 1.3 million USD mansion and has pledged over 99% of his wealth to charity.
For many, Warren Buffett is an example of how to be charitable and rich. “The country we live in makes it possible to accumulate vast sums of wealth, which gives rise to exploitation. That said, billionaires like Warren Buffett do it right,” senior Rajan Vaidya claimed. “They just need to pay their fair share of taxes and give plenty away.”
Buffett’s lifestyle indeed raises questions about what the criteria are to be considered charitable when one has accumulated massive amounts of wealth. As per the long-running ethical debate, what’s more charitable? Donating a little when you have nothing or donating a lot when you have everything?
Perhaps it’s the intent behind the act. “Just think of the Carnegie libraries or Rockefeller Center. Those rich guys used their wealth to better as many people as possible.” Vaidya continued. “On the flip side, it’s undeniable that private equity is slowly destroying America and forcing companies to push for profit at the expense of everyone else.”
There are positives and negatives to private equity, but as long as the less fortunate are considered, everyone wins. Billionaires are given the means and the avenue to change a lot of lives. Per the example of the Carnegie libraries, thousands have been placed around the country, giving the poor access to information.
Recently, leagues of billionaires have been seen taking a stand against the accumulation of mass wealth, such as Bill Gates also agreeing to donate 99% of his personal wealth and restricting his children’s inheritance.
However, this level of philanthropy would be difficult for most if given the opportunity. “If I were a billionaire, I’d spend a good chunk on charity… then probably buy Trump Tower,” senior Muhammad Baig said jokingly. “I think it’d take a considerable effort not to use my riches if I had them.”
By and large, the act of being charitable boils down to intent, and with most millionaires and billionaires, that’s the issue. It’s difficult not to be self-serving when one can do just about anything they want.
