'I Made Mistake In Choosing Friends': Warren Buffet Says As He Excludes Gates Foundation From His Annual Berkshire Stock Donations

Warren Buffett has left the Gates Foundation out of his annual charitable stock gifts for the first time in two decades, directing this year's donations entirely to four family linked foundations instead. The 95-year-old Berkshire Hathaway chairman's decision comes as a foundation review into ties with the late sex offender Jeffrey Epstein remains unresolved, and follows months of near silence between Buffett and Bill Gates.

"I've read a great deal since January 1 in terms of what happened with Bill [Gates] and Epstein ... while it's distasteful and while he made mistakes, I've made mistakes in hiring all kinds of people or choosing friends then finding out later that one way or another they weren't what I thought they were," Buffet said during an interview with CNBC.

Four family foundations receive shares

Berkshire Hathaway said Buffett will donate 9 million Class B shares of Berkshire to the Susan Thompson Buffett Foundation, along with 1 million shares each to the Sherwood Foundation, the Howard G. Buffett Foundation and the NoVo Foundation.

"My goal is to dispose of all of my Berkshire shares within about eight years," Buffett said in a statement announcing the gifts. "As I explained last year, my children are unfortunately growing older. I have every hope that the three of them are able to carry out the disposal of my shares by December 31, 2034."

Epstein review holds up Gates Foundation gift

The Gates Foundation had been the largest recipient of Buffett's annual Berkshire donations since 2006, receiving more than Rs. 3,900,500 crore, or over $47 billion, worth of stock from the Berkshire chairman over the years. Its omission from this year's gifts follows a Wall Street Journal report that Buffett had held off on his customary donation to the foundation while awaiting the outcome of a review into its ties to Epstein.

Buffett said he had not spoken with Gates "at all since the whole thing was unveiled." Asked whether the two remained close friends, Buffett told CNBC they had shared "great times together," but added, "Until it gets cleared up ... I just don't think it makes sense to do a lot of talking."

A pledge dating back to 2006

Buffett's decision marks a break from a commitment he made two decades ago. In a 2006 letter to Bill and Melinda Gates, Buffett wrote that he was "irrevocably committing" to make annual gifts of Berkshire shares to their foundation "throughout my lifetime," provided that at least one of them remained actively involved in the organisation.