2006-06-27

How "fortunate"...

So the world's second richest man Warren Buffet has decided to give away $ 37 Billion of his fortune. Buffets success has been attributed to investing in companies with solid earnings growth, but may not be in areas that are sexy or trendy. For example Mr Buffet criticized Wall Street's valuation techniques for the IT industry during the 1990's as they failed to recognize that these companies did not have any earnings. His company "Berkshire Hathaway" is a large shareholder in Coca-Cola, GE, and many other large companies. He has decided to donate $ 5 Billion per year to the Gates foundation and other philanthropic foundations managed by his family. In all when he dies he will only leave his family with a net worth of $5 Billion. When you get to be that rich, why not donate money to who needs it. It really isn't going to make a difference if they are worth $5 Billion or $50 billion.

No comments: