One of the world’s most iconic billionaire investors, Warren Buffett, has publicly labeled Bill Gates’ past relationship with convicted sex offender Jeffrey Epstein as “distasteful”, while acknowledging that he too has made missteps throughout his life in befriending individuals who did not live up to his expectations.
In a move that marks a major shift after two decades of consistent giving, Buffett’s conglomerate Berkshire Hathaway ended its annual donations to the Microsoft co-founder’s eponymous charitable organization this week. Instead, the firm has redirected the billionaire’s remaining pledged stock to a set of private foundations controlled directly by Buffett’s three children.
Buffett confirmed in an interview with CNBC that his decision to pivot away from the Gates Foundation came in the wake of Gates’ high-profile testimony before the U.S. Congress regarding his ties to Epstein, who died by suicide in a New York federal prison in 2019 while awaiting trial on federal sex trafficking charges. Despite the change in giving strategy, Buffett emphasized that the decades-long friendship between him and Gates remains intact, describing their bond as a “wonderful friendship” built over more than 30 years of shared experiences.
In a response to Buffett’s comments, Gates called the investor a “dear friend” and noted that his gratitude for Buffett’s years of support is “immeasurable”. Gates added that he values the time the pair have spent together and hopes their friendship continues for years to come.
Gates’ appearance before the U.S. House Oversight Committee in June centered on answering lingering questions about his repeated meetings with Epstein between 2011 and Epstein’s arrest. During his testimony, Gates explained that he was first introduced to Epstein by a mutual acquaintance who framed the convicted financier as a potential source of billions in new funding for global health initiatives, the core mission of the Gates Foundation.
Gates told lawmakers that he was aware Epstein had resolved prior legal issues in 2008, when Epstein pleaded guilty to state charges of soliciting a minor for prostitution and procuring an underage person for prostitution. However, Gates admitted he did not grasp the full scope and severity of Epstein’s crimes at the time of their meetings. “I should never have met with Epstein in the first place,” Gates stated in his testimony. “Based on what I know now, I understand that even if he had delivered the donors he promised, it would not have justified associating with him.”
After reviewing the full transcript of Gates’ congressional testimony, Buffett offered context for his decision to end donations. He noted that while Gates’ association with Epstein was clearly wrong, he saw nothing in Gates’ actions that he could not relate to, drawing a parallel to his own past mistakes in hiring and personal relationships. “I’ve made mistakes in hiring all kinds of people, choosing friends and finding out later that one way or another they weren’t what I thought they were,” Buffett said. “So, I found nothing in there that was beyond what I could picture myself doing.” At 95 years old, Buffett added, “I don’t know whether I’ve done dumber things but I’ve done many dumb things in life.”
Buffett also clarified that his decision to end donations came as no surprise to Gates. The two men met for a three-hour conversation roughly three weeks before the announcement to discuss the change of plans, and the pair left the meeting on good terms. Buffett recalled that he and Gates first formed their friendship in 1991, and that the pair have shared “an enormous number of good times together” over the past 34 years. “It has been a wonderful friendship,” Buffett reaffirmed.
Buffett’s original pledge to donate the vast majority of his fortune to the Gates Foundation dates back to 2006, when he promised to give annual contributions to the then-Bill & Melinda Gates Foundation “throughout my lifetime.” To date, the investor has contributed more than $47 billion (£34.7 billion) to the foundation, making him the single largest donor in the organization’s history. Buffett noted that even without his future annual contributions, the Gates Foundation retains “very substantial resources” to continue its global charitable work; the organization disbursed $8.5 billion in grants and charitable support in 2025 alone.
Beyond the fallout from the Epstein testimony, Buffett explained that his decision to shift giving to his children’s foundations reflects an evolution in his long-term planning. When he made the original 2006 pledge, Buffett did not believe his three children were prepared to manage large-scale philanthropic funding. Today, he says he is fully confident in their ability to steward the resources, and confirms their charitable priorities are fully aligned with his own core values.