A selfless act
THOUSANDS, OR MAYBE MILLIONS, of people will soon be saved from needless death by Warren Buffett. And most will never even hear the name of their benefactor. The surprise decision by the “Oracle of Omaha” to donate the bulk of his fortune over a number of years to a foundation established by the only person on Earth richer than himself was an astonishingly selfless act, but one in keeping with the investment firm chief’s style and personality.
Buffett didn’t earn his roughly $44 billion in net worth by running companies; he did it by having a knack for picking winners and staying out of their way afterward. Believing that his friend, Microsoft co-founder Bill Gates, was better at running a philanthropy than he would be, Buffett announced Sunday that he would donate shares in his holding company, Berkshire Hathaway, currently worth more than $30 billion to the Bill and Melinda Gates Foundation.
Buffett’s action is a refreshing move in the world of philanthropy, where decisions often are made on the basis of how best to glorify a donor’s legacy. The notion that what may be the largest charitable donation in history comes without its donor insisting on putting his name on anything is extraordinary. It should shame other wealthy people who set out to create vanity foundations, or who will part with their money only if they get their name on a building, bench or brick at their alma mater or favorite museum. Let’s hope Buffett can make it seem cool to simply fork over money to groups that do good well.
Buffett is, as usual, backing a very strong brand that delivers impressive results. The Gates Foundation may be the world’s most creative humanitarian venture capital investor. Gates, who aims to combat global poverty by targeting its most pernicious causes, hires top public health and education experts, who then set out to identify projects that will have the biggest possible bang for the buck. By focusing on vaccine research for tropical diseases such as malaria, for example, the foundation has found a crucial niche that has long been neglected by drug companies and charities but that could potentially save more lives than nearly any other form of intervention.
Not long ago, Gates announced that he would be semi-retiring from Microsoft in 2008 to dedicate more time to his foundation, which had an endowment of about $30.6 billion before Buffett’s announcement. Many wealthy people admire the plain-spoken Buffett. They should follow his lead in treating overseas poverty as an immediate concern. There remains plenty of need out there, and plenty of goodwill to be soaked up by potential donors. Nurturing a more peaceful, prosperous and healthy world beats having your name on a building anytime.
