The year was 1962, when someone named David “Sandy” Gottesman met Warren Buffett for the first time. They soon became friends and like many of Warren’s friends, Sandy took a leap of faith and invested with him. They remained friends for 6 decades and Sandy Gottesman was one of Berkshire’s ‘model shareholders’. He joined Berkshire’s Board in 2003 and remained a director until his death in 2022.
The annual Berkshire Hathaway shareholders’ meeting is a spectacle in itself. Discussions on railroads, insurance, energy-utilities, multi-billion-dollar acquisitions, timeless life advice, and the intelligent humour of Buffett (and till last year, Munger) usually dominate the headlines. This year everybody missed the sharp wit of Charlie Munger, but this ‘woodstock for capitalists’ drew an even larger number of admirers from all over the world, who travelled to Omaha to get inspired.
However, what inspired me the most this year was a remarkable story that Buffett narrated...a story so profound it left everyone with a warm glow, even after seven long hours of Q&A.
During the Berkshire Hathaway 2024 Meeting, Buffett told us about the unparalleled generosity of Dr. Ruth Gottesman, a former professor at Albert Einstein College of Medicine, and wife of the late Sandy Gottesman. She recently announced a staggering donation: a whopping $1 billion. But this wasn’t your typical philanthropic gesture. This incredible sum would cover tuition for all future students at the medical school, in perpetuity. Let that sink in for a moment – the financial burden of medical education, a crushing weight for so many aspiring doctors who often start their careers with student debt of > $200K, has been lifted, thanks to the generosity of a remarkable woman.
Imagine the ripple effect of this gift. Countless bright future doctors, unburdened by the spectre of student loans, will be free to pursue their passion for healing without the constant financial pressure. This translates into a brighter future for patients and a society that benefits from the unfettered talents of many of these students, who would devote their lives to making a difference. The donation is notable not only for its staggering size, but also because it is going to a medical institution in the Bronx, the city’s poorest borough.
According to Dr. Philip Ozuah, who oversees the medical college and its affiliated hospital, Dr. Gottesman was reluctant to even attach her name to her donation … “Nobody needs to know”, Dr. Ozuah quoted her. Several medical schools have in the past been renamed after their large donors. The Gottesmans could have easily insisted on the same … but Ruth Gottesman was not chasing any vanity trip. According to her, the existing name cannot be beaten “We’ve got the gosh darn name — we’ve got Albert Einstein.”
The Gottesman’s story goes beyond this single, awe-inspiring donation. It’s a powerful reminder that the ultimate power of investing isn’t measured in quick profits. It’s about building a legacy that allows you to give back in a transformative way. The magic of compound interest isn’t just about multiplying your money; it’s about multiplying the positive impact you can have on the world.
The Gottesman’s legacy isn’t built on stock tips or market predictions. It’s built on the understanding that true wealth is the ability to empower others. The billion-dollar donation is a testament to the power of long-term thinking and a deep desire to make a difference.
So, the next time you think about investing, remember the Gottesmans. Remember that the greatest returns aren’t always measured in dollars and cents. They’re measured in the lives you touch, the dreams you ignite, and the positive ripples you send out into the world. That’s the kind of investment that truly makes you wealthy beyond measure.
When Buffett narrated the story, the entire auditorium erupted in a loud applause. Ruth Gottesman was sitting in the front row with a beatific smile and was also clapping in joy. The joy she exuded was of the purest form…the joy of making others happy. There were many ultra wealthy people in that auditorium that day, but I have no doubts in my mind about who the happiest of them all was.
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