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Why does Buffett say that foundations are hidden wealth in disguise? Thank you.
You have a fortune if you invest in real things (such as business and real estate). Accounts need to be reported, and then taxes should be paid. Therefore, in order to pay less taxes, many people choose to transfer part of their property to the foundation after making money. With the appreciation of the fund, their wealth will also appreciate.

At this time, most people choose to hide the tax forms that must be submitted for this investment, and only choose to report the business profits (a loophole, as long as you don't escape too far, basically no one will check you. Although the fund has appreciated, it is not cash unless it is taken out, so it can be said that it is not profit). Over time, it is not surprising that the money in the fund gradually exceeds the capital flow in business.

Many rich people are like this. At first, they made money from business. Later, they made money from stocks. Therefore, it is not surprising that in the event of a financial crisis, their wealth has shrunk dramatically. Because huge wealth is only an abstract figure on the surface, it doesn't mean that they really deserve such huge assets. So sometimes they can't keep up with the wealth brought by listing after doing business honestly for ten years. This is a complete financial game.