I read something interesting about Bill Gates' decision regarding his wealth. Essentially, he has decided that his three children will inherit less than 1% of his total fortune. With a net worth around $128 billion, we're talking just over $1 billion for each, not for all three combined.

Gates explained it this way: his children have had excellent education and support, but giving them too much money wouldn't help them. He wants them to find their own path to success independently, not live in the shadow of their father's fortune. He doesn't even force them to manage Microsoft. He prefers they build their own income and opportunities.

Anyway, the really interesting part is the comparison with Warren Buffett. He's also a billionaire, a longtime friend of Gates, but has a slightly different approach. At Thanksgiving 2024, Buffett converted 1,600 Berkshire Class A shares into 2.4 million Class B shares and donated them to family foundations managed by his three children. Total value about $1.143 billion.

But what's curious here is that Buffett shares the same philosophy as Gates, just expressed differently. He says that wealthy parents should leave their children enough money to do anything, but not so much that they have to do nothing. He has already given millions to his children over the years, but his main inheritance will go to a charitable trust fund that the three of them will manage together after his death.

So, in reality, Gates and Buffett think almost the same way: wealth is meant to provide opportunities, not to create parasites. The difference is that Buffett involves his children in managing the philanthropic capital, while Gates prefers to keep it completely separate from their personal inheritance.

Buffett also advised all parents to read their wills to their children while still alive, to avoid confusion and conflicts later. He has seen too many families destroyed by poorly understood wills.

Thinking about it, it's an interesting lesson on how the wealth of those who reach certain levels of riches becomes a matter of responsibility, not just inheritance. Both Gates and Buffett have decided that their money will do more good in the world through foundations than sitting in their children's bank accounts. I wonder how many other billionaires will think this way in the coming years.