Buffet on philantrophy

There's a video interview with Buffet from Forbes on philanthropy posted on YouTube. I jotted down some notes to share since the Oracle's philosophy is usually worth remembering:

On his kids:

·         “My kids went to public schools, and their kids went to public school and that's how it will be. I told them a long time ago that I'm not going to let you control my money. If you're not happy at 0.1% then you'll never be happy with more money. They know everything in my will; the fact that they know they will receive a significant amount of my wealth. They know that they have a responsibility towards it”

On why he outsources philanthropy? 

·         “I don’t do a lot of philanthropic work. Why Bill and Melinda Gates foundation? Why outsource?
Well when my wife had a baby, I didn't deliver it[laughs]. Smith said that specialization is a good thing and it helps society. My wife is good with un-piling the money, and I'm good with piling it. When she died earlier, I had to make a decision, and Bill and Melinda Gates foundation was the choice. People who are younger and more energetic deserve that money because they can spend it effectively”

·         “My plan in my will is that it[his wealth] should all be given it away within 10 years of my death, so that I don't leave a burden to my children 15 generations from now”

·         “It’s tough to serve two masters. I'd rather have one organization do the money making, and another one serve philanthropy”

On retirement and you when should people stop piling?

·         “If you think you're ready to stop compounding, then perhaps you're ready to invest it in Philanthropy, but at the end of the day, the decision is yours”

On a philanthropist he models?

·         “In 1959, the NYT wrote about a philanthropist on his death and mentioned the following words - "no other American has contributed more to the welfare of this country and humanity in general" and that man was Abraham Flexner”

·         “Most of you haven’t probably even heard of him, but he was my role model not for the money, but what he brought to the game. He was picked by Carnegie to examine the US medical system and made significant contributions to society. He was not a doctor, but influenced humanity like no one else”

·         “I believe in getting things done through others”

On the giving pledge:

·         “Philanthropy should be done on an individual basis, the parent company Berkshire doesn't make charitable contributions because that’s the decision of people who own the company, the shareholders…”  

·         “The pledge was started to help people to focus on it[philanthropy], norms are changing, but examples are enormously important”

On what he feel about the UN, and multilateral organizations?

·         “Governments have a big part to play, but to do things that governments can privately, is different”

·         “I believe in failure, and if you’re not failing then you're not tackling the right things”

·         “But if there 1/5 chance of success for these things[Multilateral organization led projects], then it’s worth the initiative” 

·         “Large organizations don't work as efficiently as small ones, personally”

What are the not reasons people give for not signing on to the giving pledge?

·         “There are usually two reason that people have for not signing up for the pledge. The first one is that they have all their wealth tied up in a business. They don't enough wealth freed up and separated from invested capital, and I think that’s a legitimate reason”

·         “But the second reason is that they are concerned that they’ll give up their privacy, or they say that their spouse doesn't want to give up their privacy[laughs]. Now is this reason as legitimate? Who knows…”

·         “I didn't dream that 81 people would sign up for the pledge”

On life and learning:

·         “I learned a lot about investing in my 20's, all that needed. But I learned about being wiser and human behavior a lot later, and there is no prescription for that, or perhaps even a need to speed up that process”

Watch the video here: