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Edited by: TJVNews.com
In the heart of New York City, amidst the glitz and glamour of a 60th birthday celebration, David Gottesman, affectionately known as Sandy to his close circle, was surrounded by cherished family and friends, as was recently reported in The Wall Street Journal. Among them stood Warren Buffett, a towering figure in the world of finance, whose toast at the event would echo through the annals of time: “May you live till Berkshire splits.”
The bond between Gottesman and Buffett transcended mere friendship; it was rooted in shared ventures and financial success. Gottesman, a Wall Street investor, became not only a confidant of Buffett but also a significant shareholder in Berkshire Hathaway, thanks to an early business collaboration with Buffett and Charlie Munger in the 1970s, according to the information provided in the WSJ report. The merger of their venture with Berkshire proved to be a watershed moment, catapulting Gottesman into the realm of billionaire investors as Berkshire’s shares soared in value over the years.
Unlike many companies, Berkshire Hathaway never split its original Class A shares, a decision that would have profound implications for Gottesman’s legacy. As was indicated in the WSJ report, he defied the odds, living to the ripe age of 96, and upon his passing in 2022, he entrusted his vast wealth to his wife, Ruth, with a simple directive: do what she deemed right.
What Ruth Gottesman did next captured the world’s attention and stirred hearts across the globe. In an act of unparalleled generosity, she pledged $1 billion to the Albert Einstein College of Medicine, ensuring that every student’s tuition would be covered in perpetuity, the W SJ reported. This transformative gift would alleviate the financial burden for future doctors, enabling them to pursue their passion without the weight of exorbitant tuition fees.
The decision to donate such a staggering sum was not impulsive but rather the culmination of decades of dedication to the field of medicine. Ruth Gottesman, a pioneering researcher at a Bronx medical school, had joined the faculty of Albert Einstein College of Medicine in 1968. The report in the WSJ pointed out that her commitment to education, coupled with her late husband’s friendship with Buffett, laid the groundwork for this extraordinary act of philanthropy.
Warren Buffett himself, renowned for his own philanthropic endeavors, commended Ruth’s decision, praising her for her exemplary stewardship of wealth. As per the WSJ report, the Gottesmans, along with other early Berkshire investors, witnessed their investments grow exponentially over the years, thanks to Buffett’s astute leadership and Berkshire’s remarkable success in the market.
Despite the vastness of her gift, Ruth Gottesman remains humble, her generosity a testament to the enduring power of friendship, wealth, and philanthropy. Her decision to share her fortune with future generations of medical students elevates her into the ranks of the world’s foremost benefactors, leaving an indelible mark on the landscape of education and healthcare.
Ruth Levy’s journey from a childhood in Baltimore to becoming a beacon of philanthropy and compassion is a testament to the profound impact of empathy and resilience. Born into a family steeped in philanthropic tradition, Ruth’s upbringing instilled in her a deep sense of duty towards helping others.
Growing up as one of four daughters in Baltimore, Ruth was surrounded by the values of generosity and compassion. As was noted in the WSJ report, her father’s involvement in a family business manufacturing straw hats and her mother’s dedication to working for the welfare department and an adoption agency for Black children laid the foundation for Ruth’s lifelong commitment to philanthropy.
A pivotal moment in Ruth’s life occurred when she was around 10 years old, as her family opened their home to a young girl fleeing Nazi Germany during World War II, the report in the WSJ said. This act of compassion and solidarity left an indelible mark on Ruth, shaping her worldview and instilling in her a profound empathy for others.
After graduating from Barnard College in 1952, Ruth faced challenges in finding her professional path. Despite initial setbacks, including brief stints as an assistant editor at a food magazine and attempts at secretarial work, Ruth’s unwavering determination led her to pursue higher education at Columbia University’s Teachers College, according to the information provided in the WSJ report. There, she earned both a master’s degree and a doctorate in educational psychology, laying the groundwork for her impactful career in the field of education.
In 1968, Ruth’s journey led her to the Children’s Evaluation and Rehabilitation Center at Einstein, where she dedicated herself to developing evaluation and treatment programs for children with learning disabilities, as was stated in the WSJ report. Additionally, she initiated a program for adult literacy, further exemplifying her commitment to empowering individuals through education and support.
Parallel to her professional endeavors, Ruth’s personal life intersected with the world of finance, leading to a lifelong friendship with Warren Buffett. Ruth’s husband, Sandy, a prominent figure on Wall Street, introduced her to Buffett in 1962, sparking a connection that would endure for over six decades, as was indicated in the WSJ report. Their enduring friendship blossomed into a profound bond, characterized by mutual respect and admiration.
Reflecting on their friendship, Sandy Gottesman once remarked, “From then on, it was a complete romance,” the WSJ reported. Indeed, the relationship between Ruth and Buffett transcended mere business dealings, symbolizing a shared ethos of integrity, generosity, and lifelong learning.
In the annals of finance, few friendships have been as enduring and impactful as that between Sandy Gottesman and Warren Buffett. The WSJ said that their relationship, which began as a personal connection, evolved into a formidable professional partnership, marked by late-night conversations, shared ventures, and an unwavering mutual respect.
The genesis of their friendship can be traced back to a chance visit Gottesman made to Omaha to see Buffett. What started as an afternoon chat soon evolved into an intensive discussion that stretched into the early hours of the morning. As they attempted to leave Buffett’s office, they encountered an unexpected obstacle: the building’s elevator bank had been gated off, leaving them locked inside until they found someone to let them out, as was pointed out in the WSJ report. Reflecting on the incident, Buffett recalls, “It wouldn’t have bothered us if we couldn’t have gotten out.”
Their conversations weren’t confined to in-person meetings. When face-to-face interactions weren’t possible, they communicated by phone on Sundays. The WSJ report noted that these discussions, often lasting until midnight, left Gottesman feeling invigorated and energized, akin to having consumed a double espresso.
Despite Gottesman’s general aversion to media attention, he made an exception to discuss his friendship with Buffett. The report in the WSJ said that recollections of their interactions were drawn from a 2016 interview with filmmaker Peter Kunhardt, who directed the HBO documentary “Becoming Warren Buffett.”
Their personal camaraderie took on a professional dimension in 1966 when Gottesman proposed an idea to Buffett: purchasing Hochschild Kohn, a department store in Baltimore. The store, which was managed by Ruth’s extended family, presented an enticing opportunity for investment, according to the WSH report. Together with Charlie Munger, they formed a company called Diversified Retailing and acquired Hochschild Kohn.
However, their optimism soon gave way to disappointment as it became evident that they had made a significant misstep. Buffett candidly acknowledges, “We had a lemon on our hands,” the WSJ said, Munger, ever the pragmatist, likened the experience to purchasing a yacht, where the two happiest days are the day of purchase and the day of sale.
Despite the setback, Gottesman and his partners persevered. They managed to offload the department store with minimal losses, eventually turning the situation around and transforming their lemon into lemonade. According to the WSJ report, their resilience and adaptability were further demonstrated when they merged Diversified, which had acquired a chain of women’s clothing stores, into Berkshire Hathaway at the end of 1978, offering Diversified stockholders shares of Berkshire.
The merger proved to be a stroke of genius, providing Diversified stockholders with a golden ticket to financial success. The report in the WSJ suggested that through their collaboration and strategic foresight, Gottesman, Buffett, and Munger cemented their places as titans of finance, leaving an indelible mark on the world of investment and business.
Over the years, Buffett acquired businesses from See’s Candies to insurer Geico and placed successful bets on stocks like Apple, Coca-Cola and American Express, propelling Berkshire’s growth into one of the most valuable U.S. companies, as was indicated in the WSJ report.
Since the Diversified merger, Berkshire’s stock has soared more than 400,000%, compared with the S&P 500’s total return of roughly 18,000%.
Gottesman and Buffett’s friendship lasted much longer than their ownership of the department store. “We never had an argument or even a disagreement of any kind, and we were in a lousy business together to start,” Buffett says, as was noted in the WSJ report. The one area where they couldn’t agree was how they met. Gottesman always said that a mutual friend introduced them for lunch. Buffett insists they were supposed to play golf, which he remembers because his back gave out when he reached for his wallet to pay for gas on his way to the course. He thought about canceling, but he kept driving to meet Gottesman.
“Not only did I become a good friend of Sandy’s, but our wives became very good friends, and the families became friends with each other,” Buffett says, according to the WSJ report.
Buffett’s first wife, Susie, was a singer. Ruth accompanied her on piano. The report also indicated that when the Buffetts traveled to New York after the Berkshire annual meeting, they would end their trip with a visit to the Gottesmans, who called the part of their Rye, N.Y., house where their guests from Nebraska stayed “the Buffett wing.”
During one of those afternoons at the Gottesman home, Ruth shyly mentioned that she had just received her doctorate. Buffett knew she was “very, very, very bright,” he says, but he was impressed by her modesty. He told her that if he had gotten a doctorate, he would have bought a full-page ad in the newspaper. “Ruth never wants to draw attention to herself,” he said, the WSJ reported. “She just isn’t that sort of person.”
Sandy Gottesman was the same way. He was elected to Berkshire’s board in 2003 and remained a director until his death in 2022. But he spent most of his life allergic to publicity, almost never speaking with the press or explaining the decisions of First Manhattan, the investment company he founded in 1964 that manages more than $20 billion today, according to the report in the WSJ. He said there was a reason he chose to remain under the radar. “The only time a whale gets harpooned is when he surfaces,” he said in an interview for his New York Times obituary.
As was reported in the WSJ, Ruth Gottesman kept busy after she retired as a professor emerita in 2001, joining Einstein’s board of trustees, serving as chair from 2007 to 2014 and returning to that leadership role in 2020.
After the passing of her husband, Sandy , Ruth took her time before deciding how to utilize the Berkshire stock he left behind. Eventually, she arrived at a transformative idea: to make Einstein tuition-free. The WSJ report noted that Einstein, with its annual tuition exceeding $60,000, often places a heavy financial burden on aspiring medical students, with living expenses pushing the total closer to $100,000 per year. Ruth’s vision was to remove this financial barrier, making medical education more accessible to those with the passion and potential to pursue it.
While the Gottesmans were already known for their philanthropic endeavors, with their name adorning institutions ranging from the American Museum of Natural History to the Israel Aquarium, Ruth’s billion-dollar gift to Einstein stands as one of the largest contributions in the history of U.S. higher education, as was emphasized in the WSJ report. Initially preferring to remain anonymous, Ruth ultimately agreed to attach her name to the donation, albeit with one condition: that the college not be renamed in her honor. Despite her immense generosity, Ruth has shied away from the spotlight, declining media requests and granting only a single interview to the New York Times to explain her donation.
Her lone public appearance came at a packed auditorium at Einstein, where students were called to a mandatory meeting without knowing the reason. According to the reportage in the WSJ, the announcement of Ruth’s gift elicited an emotional response from the future doctors, with screams, tears, and heartfelt gratitude filling the room.
Buffett lauded Ruth’s philanthropic gesture, emphasizing the profound impact it would have on countless lives. Buffett, who has pledged to donate all of his Berkshire shares to philanthropy, praised Ruth’s selflessness and the transformative power of her gift, the WSJ report said.
In his annual letter to shareholders, Buffett reflected on the significance of philanthropic contributions, noting that the results can often be spectacular, the report added. Ruth Gottesman’s gift epitomizes this sentiment, as it promises to shape the future of medical education and improve the lives of countless individuals, embodying the essence of philanthropy at its finest.
Ruth has said that she thinks and hopes Sandy would be pleased by her decision. He once said that the Berkshire investment allowed the Gottesmans to make charitable gifts “that have brought joy to the whole family,” for which he owed Buffett more than a toast, the WSJ report said.
“He’s had an enormous influence on my life,” he said, “and my wife’s life.”
Ruth Gottesman’s legacy extends far beyond her professional accomplishments or her association with Buffett. It is defined by her unwavering commitment to philanthropy, her dedication to education and advocacy, and her capacity for empathy and compassion. Through her actions and her example, Ruth leaves behind a legacy of kindness, generosity, and a profound belief in the power of human connection to create positive change in the world.
