THE world’s second-wealthiest man, Warren Buffett, will give away the bulk of his $44 billion (£24 billion) fortune in an extraordinary charity deal with Bill Gates, the founder of Microsoft.

The 75-year-old head of the US investment firm Berkshire Hathaway said that the death of his wife, Susie, two years ago made him realise that he should donate his money now rather than after his death.

“Our kids are great. It’s neither right nor rational to be flooding them with money,” he told Forbes magazine. “Dynastic mega-wealth would further tilt the playing field that we ought to be trying to level.”

Starting this month, Mr Buffett will begin to transfer stock in Hathaway to the Bill and Melinda Gates Foundation, the world’s largest philanthropic organisation. It funds the international fight against diseases such as malaria, Aids and tuberculosis.

“What can be more logical, in whatever you want done, than finding someone better equipped than you are to do it? That’s how I feel about this decision about my money,” Mr Buffett said.

Mr Gates, who announced last week that he was preparing to stand down from his hands-on role at Microsoft to concentrate on his charity work, said: “The generosity and trust Warren has shown is incredible.”

Considered the most successful investor of all time, Mr Buffett lives a famously unpretentious life. He still lives in the $31,000 (£17,000) house he brought in Nebraska in 1958.

His golden giveaway will see five-sixths of his wealth transferred to the Gates foundation.

He added: “Life has dealt a terrible hand to billions of people. Bill and Melinda are bent on reducing that inequity.”

THE SAGE OF OMAHA

Times Recommends

• 'Great Schlep' may seal deal for Obama
• Hindu 'storm troopers' flex their muscles
• Ahtisaari: deserved reward for (failed) plan