Warren Buffett’s Best Investment

Our 2017 annual letter is addressed to our dear friend Warren Buffett, who in 2006 donated the bulk of his fortune to our foundation to fight disease and reduce inequity. A few months ago, Warren asked us to reflect on what impact his gift has had on the world.

This is the letter Warren wrote us:

Dear Bill and Melinda,

Two years ago, I hit the 50-year mark as CEO of Berkshire and used the occasion to write a special report to the company’s owners. I reflected on what had gone particularly well or poorly, what I’d learned, and what I hoped would get done in the future.

As you might guess, I ended up being the prime beneficiary of this effort. There’s nothing like actually writing something out to clarify thinking.

It’s now been ten years since what my children call “The Big Bang,” the day in 2006 when I made pledges to the five foundations, including yours. Having hit that milestone, I thought you might enjoy writing a look backward and forward similar to what I did.

I’m not the only one who’d like to read it. There are many who want to know where you’ve come from, where you’re heading and why. I also believe it’s important that people better understand why success in philanthropy is measured differently from success in business or government. Your letter might explain how the two of you measure yourselves and how you would like the final scorecard to read.

Your foundation will always be in the spotlight. It’s important, therefore, that it be well understood. And there is no better way to this understanding than personal and direct communication from the two whose names are on the door.

Best to you both,
Warren

What follows is our answer to him.

It’s a story about the stunning gains the poorest people in the world have made over the last 25 years. This incredible progress has been made possible not only by the generosity of Warren and other philanthropists, the charitable giving of individuals across the world, and the efforts of the poor on their own behalf—but also by the huge contributions made by donor nations, which account for the vast majority of global health and development funding.

Our letter is being released amid dramatic political transitions in these countries, including new leadership in the United States and the United Kingdom. We hope this story will remind everyone why foreign aid should remain a priority—because by lifting up the poorest, we express the highest values of our nations.

One of the greatest of those values is the belief that the best investment any of us can ever make is in the lives of others. As we explain to Warren in our letter, the returns are tremendous.