Warren Buffett Explains His Big Charity and Investing Decisions (ELI5 Style)

Imagine you’re sitting at the kitchen table with the world’s most famous investor, Warren Buffett (age 95), while a friendly reporter named Becky Quick asks him simple questions. Here’s what he said, explained like you’re 5 years old.

1. Buffett Stops Giving Money to the Gates Foundation

Becky reminded Warren that a while back he said he was “waiting and watching” about the Bill Gates and Epstein news.

• Warren said: “That’s correct.”
• He will give more money to:
  • The Susan Thompson Buffett Foundation (named after his first wife, Susie)
  • His three children’s foundations
• He will give nothing right now to the Gates Foundation.

Why did he read all that stuff about Bill Gates?

Warren read everything Congress published about Bill and Epstein.

• He says Bill made mistakes, but Warren has also made mistakes picking friends or workers.
• “No one bats 1.000 in the business of choosing people.” (That means nobody is perfect at picking others.)

Important Point: Warren did NOT stop giving to Gates because he thinks Bill did something horrible. He just re-evaluated his whole plan.

The old plan vs. the new plan

• In 2006, Warren pledged (promised) a lifetime of money to Gates.
• By 2024, that was still the plan.
• Now in 2026, he changed his mind.
• He already gave Gates about $47 billion. He thought that was a decent decision.

Why trust the kids now?

• 30 years ago, he gave each kid ~$100,000 to learn giving.
• He didn’t think they were ready for huge money then.
• Today, his kids are 71–72. He says the chance they’ll do a great job is “extraordinarily high.”
• Example: His son Howard published a 100-page report on his foundation. Warren says it’s better than he could write.

Callout: Warren trusts his kids more now because they grew into the job, not because he trusts Gates less.

What about Bill Gates?

• Bill visited Warren in Omaha ~3 weeks ago. They talked 3 hours.
• Bill already knew Warren would stop donations. No surprise.
• Warren still calls Bill a wonderful friend.

The big goal of the money

• The world is super unfair (health, luck at birth).
• Goal: help people who got the “short straws.”
• Kids will have more years to live and maybe better insight than Warren in some areas.

2. Giving the Money Away Faster

Originally, Warren said Berkshire stock (his company shares) would be given to charity ~10 years after he dies.

Now he says:

• He wants all shares given out by end of 2034 (about 8.5 years from now).

Why speed up?

• He’s old. The odds of him being around keep dropping.
• He trusts Greg Abel to run Berkshire. So he doesn’t need to hold voting shares “just in case” as long.
• He wrote his final will a couple years ago and won’t change it unless something huge happens.

Important Point: At 95, Warren says he’s “losing marbles” a bit, but he was of sound mind when he wrote the will.

3. The Family Foundations

This year, Warren increased each child’s foundation by ~50%.
The Susan Thompson Buffett (STB) Foundation gets a 10x jump vs last year.

Why so much to STB?

• If Susie (first wife) had lived, she would have run that foundation.
• They agreed on women’s rights, civil rights, etc.
• Susie liked helping individuals; Warren likes big-picture stuff.

Rules for the kids

• They don’t have to spend it all this year.
• They know Dad’s views but can do what they want (as long as it’s close to the mission).
• If Warren dies first, a new foundation is made where all 3 kids must agree (unanimous) on everything.

Warren’s luck view

• Out of 8 billion people, he may be top 10 luckiest.
• He was born in the right country, to the right family, loved a job that paid hugely.
• “Accidents of birth are just so extreme.”
• He wants to “level at the edges” of inequality, not redesign the world.

Callout: The Giving Pledge (with Bill & Melinda Gates) asks rich folks to give money, but never tells them how or when.

4. Buffett Started the Big Google (Alphabet) Investment

Becky asked about Berkshire’s $30B+ position in Alphabet (Google).

• Warren said: “I initiated it.” (He bought it, not Greg.)
• He and Greg talk every day; Greg is the decider.
• Alphabet is probably #5 or #6 biggest holding (including full-owned companies like the railroad).

Why Google and not other tech?

• Tech companies now spend hundreds of billions on AI (called “capex” = big spending on equipment).
• Warren admits he once made a mistake ignoring asset-light tech.
• He likes businesses that earn high returns on money for a long time.
• Google’s record makes him think it’s a likely winner vs 95% of Wall Street hype.

Important Point: Warren still doesn’t understand every tech game, but he understands “this game” better than the old one.

5. Apple Still Liked, But Has Tough Competitors

Apple is Berkshire’s largest position.

• Warren loved CEO Tim Cook. New CEO John Ternus? He doesn’t know him well but says you don’t replace a Stradivarius violinist easily.
• He still likes Apple.
• But smart people worldwide are trying to make Apple’s future less bright.
• Example: Apple sued OpenAI last week claiming trade-secret theft. Warren jokes most managers would love to steal secrets if they wouldn’t get caught.

6. IRS Sues Coca-Cola

Coca-Cola (held by Warren 45+ years) is in a big tax lawsuit with the IRS:

• IRS says Coke owes ~$20B (Coke already deposited ~$10B).
• Goes back to 1996 overseas accounting.
• Many US companies do similar things, so the ripple effect could be historic.

Warren says: “I’ve got a dog in that fight,” so he’ll let courts decide. Paying won’t break Coke.

7. New Fed Chairman Kevin Warsh

Kevin Warsh is new head of the Fed (the US central bank that sets interest rates).

• Warren calls interest rates “gravity” for stocks.
• Warsh’s job: 2% inflation + max employment (the “dual mandate”).
• Warren thinks Warsh is a good choice and cares about the country.
• Future presidents may get mad because Warsh shouldn’t care about elections.

8. Hard to Find Value When Everyone Gambles

Warren doesn’t predict the market.

• Sometimes bargains appear fast; sometimes none for years.
• People love gambling more than investing.
• States even tax gamblers to avoid higher income taxes—cynical but true.

Callout: “It’s tough to find values when everybody is preferring gambling.”

9. Faith in Greg Abel

Warren wants shares out in 8 years partly because he 100% trusts Greg Abel to run Berkshire.

• He felt same trust with late partner Charlie Munger and friend Tom Murphy.
• Finding even one right leader is tough; he found Greg.

10. Buffett Broke His Leg (But Feels Great)

• A few weeks ago, Warren broke his leg for the first time ever.
• He feels good, glad to be born, glad not born in a tougher place or time.
• He “won the lottery” at birth and taught kids to work, not just inherit.

Summary

Warren Buffett, at 95, has changed his charity plan: no more money to Gates (for now), more to his kids and first wife’s foundation. He’s speeding up gifts by 2034 because he trusts his children and Greg Abel. He started a big Google investment, still likes Apple, watches Coke’s tax case, trusts the new Fed head, warns gambling hurts value-finding, and feels lucky in life despite a broken leg.

FAQ

Q1: Why did Buffett stop donating to the Gates Foundation?
Because he re-evaluated his whole giving plan and decided his kids are ready now; not because he thinks Bill Gates did something unforgivable.

Q2: Will the kids have to spend the money immediately?
No. They can take time, but they share Dad’s mission to help the less lucky.

Q3: Did Warren or Greg buy the Google shares?
Warren initiated it, but Greg is the final decider and they agree.

Q4: Is Warren okay after breaking his leg?
Yes, he feels good and says he’s just lucky overall.

Q5: What is the “dual mandate” of the Fed?
Keep inflation near 2% and employment as high as possible.