S Poddar
Warren Buffett, known for his philanthropy and modest lifestyle, once had a unique way of celebrating Christmas with his family—by gifting them cash. His former daughter-in-law, Mary Buffett, who was married to his son Peter in the 1980s, shared that Buffett would often give $10,000 in $100 bills as holiday presents.
However, as he later learned how his family was expending the gift money, his gifting approach would be different this time around. According to ThinkAdvisor’s interview with Mary in 2019, the cash gifts would leave the household soon after coming home. “As soon as we got home, we’d spend it, whoo!” she said. This experience prompted Buffett to rethink holiday gifting approaches.
The next year, rather than handing over the money, Buffett distributed $10,000 worth of shares of a firm he had recently bought—the Coca-Cola trust. According to Mary, he included an envelope containing a letter from him in the gift: “You could take it and convert it into cash or keep it.”. Mary decided to keep the stock, figuring it might go up in value over time. “I thought: ‘Well, [the stock] is worth more than $10,000. So I kept it, and it kept going up,'” she said. And, as usual, the stock went up under Buffett’s watch.
From then on, Buffett stopped giving cash and instead gave stocks that would appreciate over time, and his family would benefit from the long-term growth of his investments. Mary said that she would always buy shares in the companies that Buffett recommended because she knew that those stocks would rise in value. Buffett’s investments are always in the news because many believe that the stocks he buys will be good, considering his status as a shrewd investor.
However, while thinking of what to buy for her father-in-law, Mary had an epiphany. She realized that because of his wealth, he probably didn’t need anything. Thus, for Christmas, she gave him something more personal-the balance sheet of a music company she owned with Peter-showing that the business was profitable. This thoughtful gesture reflected both her understanding of Buffett’s values and their shared commitment to financial success.
Mary, who is now an author and personal finance expert, was married to Peter Buffett for over a decade. She also recalled the close-knit nature of the Buffett family, which was a key part of their holiday celebrations. Though Warren Buffett was extremely wealthy, Mary described him as someone who didn’t indulge in material excess and preferred gifts that reflected long-term value rather than short-term gratification.
This is consistent with Buffett’s view on wealth and inheritance. Indeed, Buffett has publicly disclosed his desire not to pass his significant wealth to his children but rather give away 99 percent of it. His philosophy is to make sure his money does not become part of a “dynasty.” He will ensure his money benefits other people and, more than that, continues the process even after his time is up.
This point was echoed by Buffett at age 94 when he named three independent trustees to manage his philanthropic efforts because his children are unlikely to outlive the wealth he has amassed with their ages in the 60s and 70s. In a letter, Buffett shared, “I have never wanted to create a dynasty or follow any plan that extended beyond the children.” He said that he trusted his children completely but did not know about future generations. As Buffett explained, “Who can foresee the priorities, intelligence, and fidelity of successive generations to deal with the distribution of extraordinary wealth amid what may be a far different philanthropic landscape?
Philanthropy is the theme that can be seen through his actions. This year, he gave away another $1.1 billion in Berkshire Hathaway stock to his family’s four charitable foundations. His philanthropic giving, rather than accumulating a huge fortune to pass on to the next generation, seems to be his way of making a difference with the wealth he has. In the end, it was not only a practical decision but also a reflection of Buffett’s long-standing philosophy on money and its purpose. He has always believed in using his wealth for the betterment of others and, therefore, giving stocks would mean that his gifts would remain valuable and perhaps grow in value over time. It highlights that the Buffett way to money and gifting is essentially one that makes him believe in the use of wisdom and financial thinking and long-term planning over temporary pleasures.
In conclusion, Warren Buffett decided not to give away money during Christmas time but as a small part of a more profound approach that has always made him place responsibility and generosity and an enduring effect above pleasure.
