Why would the 2nd richest man in the world give his money to the foundation of the 1st richest man in the world, which already has the largest endowment of any foundation in history? Buffett's pretty damn smart, and I'm sure that he knows that there are better ways to give money away than super concentrating it in one place.
Does anyone have any additional insight on this, aside from what we've heard at the press conference that they had?
2006-06-26 16:48:53 · 12 answers · asked by Me-as-a-Tree 3 in Business & Finance ➔ Investing
(Don't guess if you don't have any additional insight on this. I can speculate well enough on my own.)
2006-06-26 16:55:20 · update #1
I'm interested in this,too...What's the strategy behind the rich get richer?Insider info ala Martha?
2006-06-26 16:52:13 · answer #1 · answered by lotsalovetanya 2 · 0⤊ 1⤋
He has TONS of money - in DOLLARS. That's the keyword, here. Dollars...
I had done some research before i heard about the incredible donation, and I realized that Buffett was trying to get his money out of the U.S. currency. In other words, he probably thinks that the dollar is going to devaluate, making his money worthless (sort of), so he wants to give away and sell all of his money in exchange for things that will either hold their value or rise in value. I guess he thought "Well, I have this hunk of money and i want to spend as much of it as i can, so why not give it to somebody else?"
A few years ago, I think, he invested millions in some precious metal, making the price rise from a little over four dollars to seven something. He ALONE did that. Pretty cool, if you ask me.
Anyway, that's what I really think, although it might sound a little far-fetched.
2006-06-26 17:08:16 · answer #2 · answered by Josefina R 2 · 0⤊ 0⤋
Perhaps he believes that giving away massive amounts of money at once is the best way. Maybe the Gates Foundation is looking at Big Picture solutions to world problems instead of Band-Aids. Buffet is requiring a certain amount (billions) be spent every year, so the money will not be amassed into a super huge amount.
2006-06-26 16:52:21 · answer #3 · answered by Anonymous · 0⤊ 0⤋
That response about the dollar below is nuts. He has plenty of foreign currency exposure with his investments that are monitored closely by many. He gave the Gates foundation $1.5 Billion, not Gates but the foundation. This donation was under the stipulation is was all distributed within a year so Gates is obviously not going to keep it. Also, why make 10 generations of your family ridiculously rich (Walton's) when you can help so many.
2006-06-26 17:42:50 · answer #4 · answered by Mutual Fund Dominator 1 · 0⤊ 0⤋
According to Buffet statement he's been chums with Bill Gates and wants to assist Bill Gates foundation. Plus he said he doesn't believe in relatives winning the lottery so to speak. They should make their own way. Just a generous man I guess. Whew. Lot's of money to do some good.
2006-06-26 17:24:37 · answer #5 · answered by LARRY P 3 · 0⤊ 0⤋
It's not going to Gates, but his foundation, as long as either Bill or his wife Melinda are alive. I believe the two are very good friends. Would you rather donate money to a charity run by your friend that you know is going to be put to a good cause or a random charity you don't know about?
Another question? Would you rather the money be put to good use, such as research for debilitating diseases or to some heir who did nothing to earn it, except be very close with Buffett?
Appreciate the philanthropy. Not every mogul does it.
2006-06-27 16:08:59 · answer #6 · answered by phinzup123 2 · 0⤊ 1⤋
I suppose you can also say that he gave it to the right person. Bill Gates does not need any additional money so he will do what the money was intended for.
Now if you give the money to someone that was not accustom to that amount of money he/she would not be able to use it for it's intended purpose.
With Bill Gates he knows he is not gonna be ripped off by some inexperience money hungry person to use for him or herself.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2006-06-26 17:37:23 · answer #7 · answered by Skip 6 · 0⤊ 1⤋
First he is 77, so his remaining lifespan isn't that great. Second, there would be less of an estate tax, so those greedy politicans would be getting less of his money (and lawyers if there is a court fight over his money). Third, his charity contributions easily broke all the records, which will keep him famous long after he is dead.
2006-06-26 16:57:28 · answer #8 · answered by gregory_dittman 7 · 0⤊ 0⤋
Doesn't matter which CHARITY gets the most money. What matters is whether WE hold them responsible for USING that money wisely. Are you ready to personally monitor their activities? I think all of us should be watching this foundation and do what we can to be sure they achieve their goals. This foundation will be significantly affecting our future in education and world health.
http://www.gatesfoundation.org/AboutUs/OurWork/Annual-FinancialReports/
http://www.gatesfoundation.org/MediaCenter/FactSheet/
2006-06-26 16:56:45 · answer #9 · answered by Anonymous · 0⤊ 0⤋
It's a conspiracy. With money that much, they'll try to take over some small third-world country. Then, convert it into a superpower and eventually take over the world.
2006-06-26 16:52:28 · answer #10 · answered by nice_dog 5 · 1⤊ 0⤋