Buffett continues to find ways to donate his vast fortune.
Billionaire investor and philanthropist Warren Buffett proved he still has the goods when yet another of his market predictions came true at the end of 2017. However, this bet didn’t enrich the “Oracle of Omaha” personally, but instead provided over $2 million to charity.
Back in 2007 Buffett wagered $1 million of his own money that over the course of the next decade an index fund would beat out a collection of several hedge funds. Asset management firm Protégé Partners took the bet, with both sides agreeing to donate proceeds to charity regardless of the winner.
Without delving into the complicated specifics of how exactly the progress of each side was measured, the conclusion of the 10-year period saw Buffett’s prediction yielding far better results than that of his opponents. As a result, Fortune Magazine, which detailed the original bet in 2007, declared Buffett the victor at the end of 2017.
Additionally, both sides of the party placed their original wagered sums into accounts that grew with the market over the last ten years. By the end of the betting period the amount had appreciated to $2.22 million, according to Fortune.
Buffet chose to donate his winnings to the Omaha, Nebraska, chapter of Girls Incorporated, a charity providing after-school care and summer programs for girls aged 6-18. The non-profit aims to provide a space where “girls learn to value their whole selves, discover and develop their inherent strengths, and receive the support they need to navigate the challenges they face.”
With a current budget of just over $2.8 million annually, the contribution of nearly that same amount is expected to vastly improve the scope of Girls Incorporated’s activities.
Buffett has a long history as one of the United States’ most prolific philanthropists. Forbes reports that Buffett has already donated over $32 billion to charitable causes, and plans to donate 99% of his near $85 billion net worth over the course of his life.
Together with Bill Gates, Buffett began an initiative in 2010 called “the Giving Pledge,” whose goal was to invite the world’s richest billionaires into donating half of their wealth to philanthropic causes. Since 2010 over 173 people around the world have taken this pledge.
Following in her father’s footsteps, Buffett’s daughter Susan has been involved in philanthropic work for decades. Currently she serves on the board of Girls Incorporated, where the organization has named her the Girls Inc. Lifetime Champion for Girls.