Warren Buffett, Chairman of Berkshire Hathaway (BRK.A, BRK.B), has discontinued his annual major philanthropic contributions to the Gates Foundation, stating that Bill Gates's association with the late sex offender Jeffrey Epstein was unsettling.

In an interview, Buffett remarked, "Since January, I have read extensively about Bill's dealings with Epstein. It is certainly disconcerting. He made a mistake, but so have I. I have hired people and made friends, only to later discover they were nothing like I initially thought. There's nothing in this entire episode that I can say I would never have done myself."

Buffett and Gates have been friends for over three decades. He indicated that before adjusting his philanthropic giving plan, he thoroughly reviewed all information regarding Gates's interactions with Epstein. The 95-year-old Buffett has allocated all his donations this year to four foundations operated by his family members.

For many years, the Gates Foundation was the largest recipient of Buffett's annual Berkshire Hathaway donations. Since 2006, Buffett has donated over $47 billion worth of Berkshire Hathaway stock to the charitable organization co-founded by Microsoft co-founder Bill Gates and his ex-wife Melinda.

Buffett disclosed that he and Gates remain in contact, having spent several hours together in Omaha not long ago.

"He visited me in Omaha about three weeks ago; I don't recall the exact date, but it was certainly within the last three months. We talked for three full hours," Buffett said. "He will call me again; we already have our next meeting scheduled."

Philanthropic Assets to be Managed by Children

The "Oracle of Omaha" stated that his estate plan will delegate greater philanthropic authority and responsibility to his three children, whom he has been gradually preparing for this role over decades.

"I have completely reconsidered my philanthropic setup," Buffett said. "In the past, I donated vast sums to the Gates Foundation. At the time, I believed it was a good choice, and I still think it wasn't a bad decision. However, back then, I was convinced my children were completely incapable of managing and deploying such a massive amount of charitable funds."

"Now I have made it clear to my three children that this charitable capital is theirs to manage, and it is their responsibility to carry out the philanthropic work properly," he added.

Earlier this week, Buffett released a statement indicating that, as his children grow older, he plans to dispose of all his Berkshire Hathaway stock holdings over approximately the next eight years.

This year, Buffett will donate 9 million Class B shares, currently valued at about $4.5 billion, to the Susan Thompson Buffett Foundation, named after his late first wife.

Three foundations run by his children—the Sherwood Foundation run by Susie Buffett, the Howard G. Buffett Foundation, and the NoVo Foundation run by Peter Buffett—will each receive 1 million Class B shares, valued at nearly $500 million.

Buffett also noted that he broke his leg and underwent surgery several weeks ago and is currently recovering well.