Warren Buffett will donate $3.6 billion in Berkshire Hathaway shares to Bill Gates' foundation, 4 others

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• Warren Buffett announced he will donate $3.6 billion worth of Berkshire Hathaway shares to five foundations.
• Buffett made a philanthropic pledge to give away 99% of his wealth through annual gifts in 2006.
• Class B shares will be donated to the Bill & Melinda Gates Foundation, Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation.
• Read more on Markets Insider.

Five foundations - including the Bill & Melinda Gates Foundation - will receive $3.6 billion of Berkshire Hathaway shares, the company said in a statement Monday.

Warren Buffett will convert 11,250 Class A shares into 16.875 million Class B shares, which will then be donated to the Bill & Melinda Gates Foundation, Susan Thompson Buffett Foundation, Sherwood Foundation, Howard G. Buffett Foundation, and NoVo Foundation.

Buffett is known for his charitable giving as well as his investing advice. In 2006, he made a philanthropic pledge to make annual gifts of Berkshire B shares for the benefit of the Bill & Melinda Gates Foundation. His first donation in 2006 totaled $1.5 billion. For the rest of his life - and for 10 years following his death - more than 99% of his wealth will go to philanthropy.

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The Oracle of Omaha has never sold any shares of Berkshire, instead opting to convert Class A shares in Class B shares before they are gifted. About 45% - amounting to $34 billion - of his 2006 holdings have been given to the five foundations.

Buffet is the fourth-wealthiest person in the world, according to Bloomberg's Billionaires Index, and has a total fortune of about $87.3 billion.

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