OMAHA, Neb. (AP) — Billionaire Warren Buffett said Wednesday that his decision to cut the Gates Foundation out of his charitable giving is more about believing his three kids are ready to handle giving away his entire fortune than it is about Bill Gates ' ties to convicted sex offender Jeffrey Epstein.
Buffett told CNBC that Gates' association with Epstein was “distasteful," but the 95-year-old investor suggested that Gates' actions weren't much different from mistakes he himself had made over the years in hiring the wrong person or in choosing friends.
“No one bats a thousand in the business of choosing people," Buffett said on CNBC.
Buffett said he “read a great deal since Jan. 1 in terms of what happened with Bill and Epstein. And I have read his remarks to Congress given under oath, and I read the cross-examination.” He noted that Gates eventually ended his relationship with Epstein.
Buffett said Gates wasn't surprised by the decision Buffett announced Tuesday to eventually donate all the rest of his $140 billion of Berkshire Hathaway stock to foundations associated with his family and his three children, Howard, Susie and Peter. Gates flew to Omaha a few weeks ago and spent several hours talking with Buffett. The two hadn't spoken much since before additional details about Gates and Epstein started to come out when the federal government began releasing files from the Epstein investigation.
Gates has said that he only met with Epstein because he thought it might help him raise money for charitable causes, and he didn't know about Epstein's ongoing crimes.
Epstein, who was accused of sexually abusing dozens of underage girls, was found dead at the Manhattan federal lockup in August 2019. His death was later ruled a suicide by New York City’s medical examiner.
Gates called Buffett “one of the greatest philanthropists of all time, and a dear friend” who he hopes to spend much more time with in the future.
“His wisdom, generosity, and deep sense of purpose have defined both his life and his philanthropy. His support for the Gates Foundation, at nearly $50 billion over the past twenty years, has been unprecedented, and it has helped save millions of lives,” Gates said in a statement.
Buffett said in 2024 that he planned to cut off donations to the Gates Foundation after he died and let his three children decide how to distribute the rest of his fortune.
The Gates Foundation will still have tremendous resources: its endowment was worth nearly $90 billion at the end of last year and Gates has promised to donate nearly all his remaining fortune to the foundation.
In other news from the CNBC interview, Buffett revealed that he recently broke his leg and underwent surgery for it, but he said he is recovering well.
Buffett said he wants his own Berkshire shares to be distributed even quicker than he has previously indicated: by the end of 2034. To do that, he will have to drastically increase the amount he donates every year, to more than $17 billion annually.
Right now he is giving roughly $6 billion to the Susan Thompson Buffett Foundation and the foundations his children run: the Sherwood Foundation, the Howard G. Buffett Foundation and the Novo Foundation. Buffett filed documents with the Securities and Exchange Commission Wednesday afternoon that showed he had donated a total of 12 million Class B Berkshire shares a day earlier to those foundations.
The majority of that is going to the foundation named in honor of his late wife, which may quickly become one of the world's largest such organizations. Buffett also traditionally gives additional gifts to his family foundations around Thanksgiving each year.
He has said that after his death, a new foundation will be created to distribute the rest of his shares and that his children will have to agree unanimously on where to donate them. He wants his children to be able to make those decisions before they die or become senile, and his oldest daughter will be nearly 81 in eight years.
The accelerated pace of Buffett's plan to give away his fortune over the next eight years rather than doing it over the 10 years following his death will mean that his successor at Berkshire Hathaway, Greg Abel, won't be able to count on the support of Buffett's family as the company's biggest shareholder for as long as he thought. Buffett currently controls nearly 30% of the voting power with his 188,290 Class A shares.
Nevertheless, Buffett said he believes it's clear that Abel is the right man to lead the conglomerate he built, and “that becomes more evident by the day.”
FILE - Warren Buffett, chairman and CEO of Berkshire Hathaway, speaks during a game of bridge following the annual Berkshire Hathaway shareholders meeting May 5, 2019, in Omaha, Neb. (AP Photo/Nati Harnik, File)
FILE - Bill Gates, co-founder of Microsoft, leaves after a closed-door interview with the House Oversight Committee investigating convicted sex offender Jeffrey Epstein, on Capitol Hill, June 10, 2026, in Washington. (AP Photo/Jose Luis Magana, File)
FILE - Microsoft co-founder and chairman Bill Gates, left, and Berkshire Hathaway Inc. billionaire Warren Buffett laugh while answering questions Aug 5, 2006, before the Nebraska Regional Bridge tournament in Council Bluffs, Iowa. (AP Photo/Dave Weaver, File)
NEW YORK--(BUSINESS WIRE)--Aug 18, 2026--
Franklin Templeton and its real estate investment manager Clarion Partners are today announcing Clarion Partners Real Estate Income Fund Inc.’s (NASDAQ: CPREX) acquisition of four industrial outdoor storage (IOS) properties totaling approximately 26 acres and 219,000 square feet across four major U.S. markets: Central New Jersey, Houston, Dallas-Fort Worth and Atlanta. The acquisitions further expand the Fund’s strategic allocation to the growing IOS sector.
This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20260818542002/en/
The acquisitions reflect Clarion’s conviction in IOS as a critical component of the U.S. industrial real estate landscape. IOS properties support a broad range of users, including contractors, equipment rental companies, manufacturers, transportation providers and other businesses that require outdoor storage, vehicle parking, equipment staging and access to industrial facilities. The sub-sector benefits from limited availability of industrial sites with sufficient yard space, particularly in infill locations near major transportation infrastructure.
“This latest group of acquisitions reflects our continued focus on diversifying the Fund across property types, markets and demand drivers to enhance its risk-adjusted performance potential,” said Portfolio Manager and Managing Director Brent Jenkins. “We believe adding well-located IOS assets in diversified markets strengthens the portfolio’s ability to generate durable income and long-term appreciation.”
The investments span markets with diverse but complementary demand drivers. Houston benefits from its energy-intensive manufacturing base, the Port of Houston and continued investment in industrial and manufacturing infrastructure. Dallas-Fort Worth continues to experience strong population and employment growth, while Atlanta serves as a major Southeast freight hub. In Central New Jersey, IOS demand is supported by proximity to the New York metropolitan population center and the Port of New York and New Jersey, combined with significant barriers to new supply.
“These acquisitions demonstrate Clarion’s continued focus on building a diversified IOS portfolio in markets where transportation connectivity, population growth and constrained supply can support long-term demand,” said Managing Director and transaction lead Adam Wheeler. “We believe IOS represents an attractive opportunity within the broader industrial sector, particularly for well-located properties that serve essential operating needs.”
About Clarion Partners
Clarion Partners, an SEC registered investment adviser with FCA-authorized and FINRA member affiliates, has been a leading U.S. real estate investment manager for more than 40 years. Headquartered in New York, the firm maintains strategically located offices across the United States and Europe. With over $73.3 billion in total real estate and debt assets under management, Clarion Partners offers a broad range of real estate strategies across the risk/return spectrum to 500 institutional investors across the globe. Clarion is scaled in all major property types and was an early entrant into the Industrial sector. The Firm’s global industrial team manages a 930+ property portfolio in the U.S. and Europe consisting of more than 249 million square feet as of March 31, 2026.
For more information visit www.clarionpartners.com and follow us on LinkedIn and YouTube.
About Franklin Templeton
Franklin Templeton is a trusted investment partner, delivering tailored solutions that align with clients’ strategic goals. With deep portfolio management expertise across public and private markets, we combine investment excellence with cutting-edge technology. Since our founding in 1947, we have empowered clients through strategic partnership, forward-looking insights, and continuous innovation – providing the tools and resources to navigate change and capture opportunity.
With approximately $1.8 trillion in assets under management as of July 31, 2026, Franklin Templeton operates globally in more than 35 countries.
To learn more, visit franklintempleton.com and follow us on LinkedIn.
Characteristics and holdings weightings are based on total portfolio, are subject to change at any time, and are provided for informational purposes only. Not to be construed as a recommendation to purchase or sell any security. There can be no assurance that any unrealized investment described herein will prove to be profitable. Please refer to the important disclosures at the end of this presentation.
Investment risks: All investments involve risk, including loss of principal. Past performance is no guarantee of future results.
Liquidity risk considerations: The Fund should be viewed as a long-term investment, as it is inherently illiquid and suitable only for investors who can bear the risks associated with the limited liquidity of the Fund. Limited liquidity is provided to shareholders only through the Fund’s quarterly repurchase offers for at least 5% of the Fund’s shares outstanding at net asset value. Although the Fund will conduct quarterly repurchase offers, there is no guarantee that a shareholder will be able to sell all of their shares in the Fund that the shareholder desires to sell or at a favorable price. Shares tendered within 12 months of the original issue date will be subject to an early withdrawal fee of 2.00%. Please see the Fund prospectus for additional information.
Real Estate Investment Risks: The Fund’s investments are highly concentrated in real estate investments and therefore will be subject to the risks typically associated with real estate, including but not limited to fluctuations in lease occupancy rates and operating expenses, variations in rental schedules, which in turn may be adversely affected by local, state, national or international economic conditions. Such conditions may be impacted by the supply and demand for real estate properties, zoning laws, rent control laws, real property taxes, the availability and costs of financing, and environmental laws. Furthermore, investments in real estate are also impacted by market disruptions caused by regional concerns, political upheaval, sovereign debt crises, and uninsured losses (generally from catastrophic events such as earthquakes, floods and wars). Investments in real estate related securities, such as asset-backed or mortgage-backed securities are subject to prepayment and extension risks.
Private Market Investments Risks: An investment in the Fund is suitable only for investors who can bear the risks associated with private market investments (such as private credit and private equity) with potential limited liquidity. Shares will not be listed on a public exchange, and no secondary market is expected to develop.
Before investing, carefully consider a Fund's investment objectives, risks, charges and expenses. You can find this and other information in each prospectus or summary prospectus, if available, at www.franklintempleton.com. Please read it carefully.
Any information, statement or opinion set forth herein is general in nature, is not directed to or based on the financial situation or needs of any particular investor, and does not constitute, and should not be construed as, investment advice, forecast of future events, a guarantee of future results, or a recommendation with respect to any particular security or investment strategy or type of retirement account. Investors seeking financial advice regarding the appropriateness of investing in any securities or investment strategies should consult their financial professional. INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE © 2026 Franklin Distributors, LLC, member FINRA/SIPC. Franklin Distributors, LLC, and Clarion Partners, LLC are all subsidiaries of Franklin Resources, Inc.
Property image: 6500 Brittmoore, a ~12-acre, 140,200 sq. ft. crane-served campus located in Houston, TX, fully leased to a leading energy technology company.
