7 Surprising (and Moving) Quotes from Warren Buffett’s Recent Shareholder Letter

In a November letter to Berkshire Hathaway shareholders, famed investor and philanthropist Warren Buffett shared some advice that may come as a surprise to fans of the billionaire.

Many savers and investors turn to Buffett's philosophies for guidance on how to build wealth, but the 94-year-old CEO of Berkshire Hathaway offered new advice that focuses more on family matters and how to leave the right legacy.

Below are some key quotes from Buffett's shareholder letter.

"Susie and I had long encouraged our children in small philanthropic activities and had been pleased with their enthusiasm, diligence and results. At her death, however, they were not ready to handle the staggering wealth that Berkshire shares had generated."

Buffett explained that when his first wife, Susie, died in 2004, his three children were not yet ready to take over and manage massive wealth.

In the 20 years since, Buffett has watched his kids grow into strong leaders and now feels comfortable leaving big responsibilities to his offspring.

Sometimes, it pays to be patient and wait for your children to mature before letting them take the reins.

"Tomorrow's decisions are likely to be better made by three live and well-directed brains than by a dead hand."

Buffett has stated that he completely trusts his children. Rather than trying to manage the dispersal of his wealth from beyond the grave, he is giving his children the final say in where those riches end up.

But the Oracle of Omaha also understands that his children — who are now 71, 69, and 66 — might not live long enough to give away all of his assets. So, Buffett has guided his kids to name potential successors to disburse his assets after he dies in case the children don't live long.

Unexpected events can derail the best-laid plan. So, it's good to have a backup plan in place just in case.

"Be sure each child understands both the logic for your decisions and the responsibilities they will encounter upon your death. If any have questions or suggestions, listen carefully and adopt those found sensible. You don't want your children asking 'Why?' in respect to testamentary decisions when you are no longer able to respond."

In the letter, Buffett stresses the importance of acting with candor and being open about what's going into your will so you avoid blindsiding family and potentially causing hostilities, jealousies, and family rifts.

The billionaire suggests all parents have their adult children read over wills. Buffett's advice underscores the importance of transparency in maintaining good family relationships.

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"By not stepping on any banana peels, I now remain in circulation at 94 with huge sums in savings — call these units of deferred consumption — that can be passed along to others who were given a very short straw at birth."

The philanthropist acknowledged that when he was born in 1930, the economic outlook for the U.S. wasn't great. He considers himself very lucky that he's been able to amass so much wealth over nearly a century of life — and he sees the value of giving back.

Buffett praised both of his wives — the late Susie and his current wife, Astrid — for enthusiastically embracing lives of philanthropy rather than sitting on fortunes or creating endless wealth for future generations. Buffett's example is a reminder of the importance of giving back.

"I've never wished to create a dynasty or pursue any plan that extended beyond the children. I know the three well and trust them completely. Future generations are another matter."

Buffett also acknowledged that future generations — his grandchildren and great-grandchildren — may not have the same goals that he and his children do for his fortune. Times change, and the future is unpredictable.

Buffett trusts his three children and their chosen successors to carry out his philanthropic goals, but doesn't feel comfortable peering deeper into the future than that. So, he has no interest in creating a dynasty where generations upon generations are set for life and may not behave well with the wealth entrusted to them.

"We shared a view that equal opportunity should begin at birth and extreme "look-at-me" styles of living should be legal but not admirable. As a family, we have had everything we needed or simply liked, but we have not sought enjoyment from the fact that others craved what we had."

Buffett praised his wives — the "we" he refers to in the above quote — for sharing his views that there's much more value in donating to good causes than flaunting wealth and creating a dynasty.

Today, many rich people and celebrities publicly revel in their good fortune. Buffett's example underscores that you can still be both wealthy and modest.

"Father time always wins. But he can be fickle — indeed unfair and even cruel — sometimes ending life at birth or soon thereafter while, at other times, waiting a century or so before paying a visit. To date, I've been very lucky, but, before long, he will get around to me."

Buffett is one of the richest people in the world. He is famous and admired by many. But none of those facts protect him from sharing the same ultimate fate as every other person.

Although that might sound grim, Buffett is clear-eyed about the fact that he soon will move on to his final reward, and he appears to be facing the end with dignity. That can be a good example for all of us.

If you're looking to start investing, following Buffett's money-making philosophies is a great jumping off point.

But Buffett's wisdom doesn't end there. The billionaire philanthropist's latest letter to stockholders offers good insights about what to do once you have secured your wealth so you can leave the right legacy for loved ones and the larger society.