Why Does Warren Buffett Give Away Money?

Warren Buffett, the Chairman of Berkshire Hathaway, is one of the richest men in the world. At the time of writing, he is ranked #2 in the world and has a wealth of around $78 billion, most of which is in his company. No one would deny that he is rich. However, he is also one of the world’s top philanthropists.

In fact, Buffett routinely gives to charity and has pledged to give away 99% of his wealth either before or after he dies. He and his friend Bill Gates started the Giving Pledge, and their moves have inspired other billionaires to give back to the world. But, why does Buffett give his money away?

Interestingly enough, Buffett said during a 2007 Berkshire Hathaway meeting that he doesn’t consider his charity donations and philanthropy to really be ‘giving away’ money at all.

“As far as I’m concerned, I haven’t given up anything. Someone who gives up an evening out or a lot of time or a trip to Disneyland because they donated to a church or whatever… they have given away something. I haven’t changed my life. I can’t eat any better or sleep any better, so I haven’t really given up anything,” Buffett said.

Many sites (this one included at times) will say that Warren Buffett is ‘frugal’ and that he is careful with his money. But the truth of the matter is much simpler: he has too much money to spend, and he simply doesn’t know what to do with it.

“There’s a point you start getting inverse correlation between wealth and quality of life. My life couldn’t be happier. In fact, it’d be worse if I had six or eight houses,” Buffett told shareholders at a meeting in 2014. “So, I have everything I need to have, and I don’t need any more because it doesn’t make a difference after a point.”

Buffett has said multiple times that he has no interest in leaving his children with billions of dollars, and there is only so much you can buy. So, being the kind of person that Buffett is, he gives it away to registered charities. But regardless of the reason, his philanthropy efforts are impressive, and have to be one of the many reasons that we love Warren Buffett.

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