Warren Buffett described Bill Gates's past association with Jeffrey Epstein as "distasteful" while explaining his decision to cease annual donations to the Gates Foundation. Buffett, chairman and former CEO of Berkshire Hathaway, told CNBC on Wednesday that while he found the relationship "distasteful," he also acknowledged making his own mistakes in choosing people.
"While it's distasteful, while he made mistakes, I made mistakes, hiring all kinds of people, or choosing friends, and then finding out later that, one way or other, they weren't who I thought they were," Buffett said. "I found nothing in there that was beyond what I could picture myself doing." He added, "No one bats a thousand in the business of choosing people."
Buffett stated he has read extensively about Gates's relationship with Epstein since January and noted that Gates has since cut ties with the convicted sex offender. The remarks followed Buffett's announcement Tuesday that he would be donating the remainder of his wealth to family foundations, to be overseen by his children. He anticipates distributing his Berkshire Hathaway shares over the next eight years.
Buffett's decision to skip his annual donation to the Gates Foundation was not explicitly tied to Gates's association with Epstein, though the timing was noted. He mentioned that Gates was not surprised by the decision and that they had spoken at length recently.
According to Gates, his relationship with Epstein, which occurred between 2011 and 2014, was limited to discussions about potential donors for his foundation, and he was unaware of Epstein's criminal activities at the time. In a statement, Gates referred to Buffett as a "dear friend" and "one of the greatest philanthropists of all time."
In February, during a town hall meeting at the Gates Foundation, Gates apologized to staff for his interactions with Epstein, calling it a "huge mistake" to have spent time with him and involved foundation executives in meetings. He acknowledged having affairs with two Russian women, which Epstein later learned about, but maintained that these did not involve any of Epstein's victims, and he never spent time with them. "I did nothing illicit. I saw nothing illicit," Gates said.
Buffett had previously planned to cease donations to the Gates Foundation after his death. His accelerated timeline for giving away his fortune means his annual donations will increase significantly, from approximately $6 billion to over $17 billion. This shift will also affect the timeline for his successor at Berkshire Hathaway, Greg Abel, regarding family support as the company's largest shareholder.
Buffett expressed confidence in Abel's leadership, stating it becomes "more evident by the day" that he is the right person to lead the conglomerate. Buffett also noted that Berkshire's substantial investment in Alphabet, Google's parent company, was initiated by him, with Abel's agreement.