David Gottesman, affectionately known as Sandy to those close to him, celebrated his 60th birthday surrounded by family and friends at a New York City hotel. Among the attendees was Warren Buffett, who shared a heartfelt toast wishing Gottesman a long life, expressing a sentiment tied to Berkshire Hathaway’s fortunes.
Gottesman’s relationship with Buffett extended beyond friendship; he was also a significant shareholder in Berkshire Hathaway, a position he acquired through an early business venture with Buffett and Charlie Munger in the 1970s. This investment proved to be immensely profitable, as Berkshire’s shares soared over the years, contributing to Gottesman’s wealth.
Unlike many companies, Berkshire Hathaway’s original Class A shares were never split, maintaining their high value. Gottesman, who lived to the age of 96, witnessed the enduring success of his investment. Upon his passing in 2022, he entrusted his shares to his wife, Ruth, empowering her to decide their fate.
Ruth’s decision captured widespread attention and admiration. She chose to donate $1 billion to the Albert Einstein College of Medicine, a move aimed at covering the tuition costs of every student in perpetuity. This transformative act ensures that future doctors at the institution will no longer face the financial burden of expensive medical education, securing the school’s legacy and advancing medical education accessibility.
Ruth Gottesman’s remarkable act of philanthropy, announced recently, is the culmination of a lifetime dedicated to education, service, and generosity. Her journey began in 1968 when she joined the faculty of the Albert Einstein College of Medicine, not long after her husband’s business partnership with Warren Buffett commenced. Their friendship with Buffett, coupled with astute investments in Berkshire Hathaway, yielded substantial wealth over the years.
As Berkshire’s Class A shares skyrocketed in value, the Gottesmans, along with other early investors, witnessed their investments multiply exponentially. From a modest beginning, Berkshire’s shares now command a price exceeding $600,000 each. Ruth Gottesman’s decision to donate $1 billion to her alma mater, Albert Einstein College of Medicine, was met with admiration and praise, instantly catapulting her into the echelons of global philanthropy.
Her connection with Buffett endures to this day, with Ruth confiding in him about her philanthropic intentions. Buffett, known for his own philanthropic endeavors, lauded Ruth’s decision, acknowledging her exemplary stewardship of wealth.
Ruth Gottesman’s commitment to philanthropy is deeply rooted in her upbringing. Raised in Baltimore, she hails from a family with a strong tradition of giving back. Her parents, pioneers in philanthropy themselves, played pivotal roles in establishing a scholarship program for Maryland high-school students. Additionally, Ruth’s childhood was shaped by an act of compassion when her family welcomed a young girl fleeing Nazi Germany during World War II, underscoring the values of empathy and solidarity instilled in her from a young age.
Ruth Gottesman’s journey from her formative years to her groundbreaking philanthropic gesture is a testament to her resilience, compassion, and commitment to education and social welfare. After graduating from Barnard College in 1952, Ruth encountered challenges in finding suitable employment. Despite setbacks, including brief stints in editorial and secretarial roles, she pursued her passion for education, enrolling at Columbia University’s Teachers College.
There, Ruth earned both a master’s degree and a doctorate in educational psychology, laying the foundation for her illustrious career. In 1968, she joined the Children’s Evaluation and Rehabilitation Center at Albert Einstein College of Medicine. In this role, Ruth spearheaded the development of innovative evaluation and treatment programs for children with learning disabilities, along with initiating programs aimed at promoting adult literacy.
Ruth’s professional endeavors were paralleled by her personal life, marked by her marriage to Sandy Gottesman in 1950. Sandy, a Wall Street professional, became acquainted with the legendary investor Warren Buffett early in his career. Their partnership with Buffett and subsequent investments in Berkshire Hathaway proved to be transformative, culminating in substantial wealth for the Gottesmans.
Despite their financial success, Ruth remained deeply committed to her work in education and social welfare. Her experiences, including witnessing the hardships endured by others during World War II, instilled in her a profound sense of empathy and compassion. This ethos guided her philanthropic endeavors, ultimately leading to her historic $1 billion donation to Albert Einstein College of Medicine, a testament to her lifelong dedication to making a positive impact on society.
The enduring friendship between Sandy Gottesman and Warren Buffett, spanning over six decades, was marked by mutual respect, shared values, and a deep camaraderie. Their bond, forged in Omaha in 1962, evolved into a lifelong partnership that transcended business and extended into their personal lives.
Their friendship was characterized by memorable anecdotes, such as the night they found themselves locked in a building after hours of conversation, or their regular Sunday phone calls that left Gottesman energized and invigorated. Despite occasional disagreements over the circumstances of their initial meeting, their enduring camaraderie was evident in their shared experiences, mutual admiration, and unwavering support for each other.
Their professional collaboration began in 1966 when Gottesman proposed the acquisition of Hochschild Kohn, a department store in Baltimore, to Buffett. While the venture initially encountered challenges, Buffett, Munger, and Gottesman eventually turned it into a profitable investment, laying the groundwork for their subsequent partnership in Berkshire Hathaway.
Over the years, Buffett’s astute investment decisions and Gottesman’s shrewd business acumen propelled Berkshire’s growth, transforming it into one of the most valuable companies in the United States. Their partnership endured through the highs and lows of business, characterized by mutual trust, respect, and a shared vision for success.
Despite their considerable success, both Buffett and Gottesman remained humble and grounded individuals, prioritizing integrity, humility, and philanthropy. Gottesman’s remarkable generosity, epitomized by his wife Ruth’s historic $1 billion donation to Albert Einstein College of Medicine, underscored their commitment to making a positive impact on society and ensuring access to quality education for future generations. Through their enduring friendship and philanthropic endeavors, Buffett and Gottesman left an indelible legacy that continues to inspire and uplift others.
The philanthropic legacy of the Gottesmans extends far beyond their recent billion-dollar donation to Albert Einstein College of Medicine. Prior to this historic contribution, Ruth and Sandy had already established themselves as generous benefactors, leaving their mark on institutions ranging from the American Museum of Natural History to the Israel Aquarium. Their philanthropic journey included a $25 million donation to Einstein in 2008, resulting in the naming of a research institute and teaching center in their honor.
Despite their significant contributions, Ruth Gottesman initially preferred to remain anonymous regarding her billion-dollar gift to Einstein. However, she ultimately agreed to attach her name to the donation, albeit with the unusual request that the college not be renamed in her honor. While Ruth has shied away from the spotlight since the announcement, her lone appearance at Einstein, where she revealed her donation to a surprised audience of students, left a profound impact on all present.
Warren Buffett, a close friend and confidant of the Gottesmans, expressed admiration for Ruth’s decision, emphasizing the transformative impact her gift would have on countless individuals. Buffett’s own commitment to philanthropy, highlighted by his pledge to donate all his Berkshire shares, resonates with the Gottesmans’ shared belief in giving back to society. Reflecting on Ruth’s generosity, Buffett underscored the profound influence their friendship had on both their lives and the lives of others.
Ruth’s decision to honor her late husband’s memory through her philanthropy exemplifies the enduring legacy of their partnership and shared values. As Buffett aptly stated, Ruth’s gift represents one of those rare moments when philanthropy transcends personal gain to make a meaningful difference in the lives of many—a sentiment that undoubtedly resonates with Sandy’s vision and values.