<p>Perhaps his and Gates’ actions (steppping down as Microsoft head to devote virtually full time to philanthropy) will help other billionaires begin to take more actions to help humanity instead of simply accruing more excess wealth.</p>
<p>"Warren Buffett gives away his fortune
FORTUNE EXCLUSIVE: The world’s second richest man - who’s now worth $44 billion - tells editor-at-large Carol Loomis he will start giving away 85% of his wealth in July - most of it to the Bill & Melinda Gates Foundation.
By Carol J. Loomis, FORTUNE editor-at-large
June 25, 2006: 1:42 PM EDT</p>
<p>NEW YORK (FORTUNE Magazine) - We were sitting in a Manhattan living room on a spring afternoon, and Warren Buffett had a Cherry Coke in his hand as usual. But this unremarkable scene was about to take a surprising turn.</p>
<p>“Brace yourself,” Buffett warned with a grin. He then described a momentous change in his thinking. Within months, he said, he would begin to give away his Berkshire Hathaway fortune, then and now worth well over $40 billion.</p>
<p>As part of his plan, Warren Buffett is sending letters to each of the five foundations that will be receiving his gifts. The letters may be found on Berkshire Hathaway’s Web site… </p>
<p>This news was indeed stunning. Buffett, 75, has for decades said his wealth would go to philanthropy but has just as steadily indicated the handoff would be made at his death. Now he was revising the timetable…"</p>
<p>That is indeed a surprising reversal, but also a great move. By giving 5/6 of his fortune to the Gates Foundation, he will avoid duplicating the necessary expenses associated with making baby steps in philantropy. This is also a strong message that an undisputed business leader such as Buffett has recognized that the hands-on and ironfist approach of the Gates is the correct one. </p>
<p>This addition to the growing funding of Gates and the Waltons -among others- will increase the chance of seeing real and beneficial reforms taking place in our high schools and education in general. For the first time, the resources of private organizations will be sufficient to match the budgets of organizations that have maintained a horrendous stronghold on our education system. So far, there has not been a real showdown between the Gates’ people and political groups masquerading as unions such as the NEA, but it is only a matter of time for this to happen. IMHO, not a day too early.</p>
<p>See the thread on inner-city graduation rates. SOMETHING has to be done and it’s not going to come from the federal government. I hope that’s what this philanthropy is going to focus on.</p>
<p>The best way to improve inner-city graduation rates is to do what Sam Kinnison said–give them Uhauls. Depopulate the inner-city and spread the families as far into the suburbs and smaller towns as you can. No amount of money for schools will overcome the inner-city pathology.</p>
<p>Buffet has already set up foundations in the names of his (deceased) wife and his kids. The bulk of his billions will go under the name of the Gates foundation (no plans to rename it the Gates/Buffet foundation I presume). As Xiggi pointed out, this represents a huge savings of startup costs and overhead vs funding a new “Warren Buffet” foundation. What I admire most is the description of this action as “egoless.”</p>