In an American world where it seems that the middle class is diminishing, where the rich are becoming richer and the poor are becoming poorer, a trio of very wealthy men made recent announcements about how they plan to change that world with their massive fortunes. In fact, the largest donation in history was made this year when Warren Buffet announced a gift worth about $30.7 billion from his $44 billion fortune to the Bill & Melinda Gates Foundation.

But, you might wonder why the second richest man in the world would give money to a foundation run by the richest man in the world.

Pundits haven't missed the connection between Buffet and Gates, as both men made announcements about their philanthropic goals in June this year. Buffet, an unpretentious and frugal 76-year-old man who is most well known as a value investor, plans to give away much of his fortune over the next few years. His giving is consistent with a philosophy that he has made public in the past, where he opposes transfers of great fortunes from one generation to the next. His three children, instead, will see donations made to foundations that they run.

Gates, an entrepreneur who amassed a fortune currently worth about $53 billion, is younger than Buffet by 25 years. And, unlike Buffet, Gates began to contribute to charitable organizations over six years before Forbes named him as the world's first centibillionaire worth - briefly - over $100 billion in 1999. In 1994, Bill and his wife, Melinda, consolidated their giving to address two main initiatives: Global Health and community needs in the Pacific Northwest. This year, the Bill & Melinda Gates Foundation reorganized into three separate programs that deal with Global Development, Global Health, and a core-operations group located in the United States.

Wait - there's more. Sir Richard Branson from Great Britain announced this month that he plans to commit all profits from his travel firms over the next 10 years to his own charity called Virgin Fuels - a contribution worth approximately $3 billion. This investment unit will focus on green energy products so that the world can wean itself off fossil fuels. Branson made the announcement in New York on the second day of the Clinton Global Initiative, an annual conference hosted by former US President Bill Clinton (Bill Gates was a featured attendee this year).

Branson is five years younger than Gates, and he's only worth about $5 billion. Most of his fortune was made through the Virgin Group label on records, airlines and trains. Unlike Gates and Buffet, Branson didn't come from a wealthy family and he's a much more controversial character than either American billionaire. For instance, he ranked no. 85 on the BBC's 2002 list of "100 Greatest Britons," and no. 86 on the BBC 2003 list of "100 Worst Britons." His idealism tends to save him, however, so his recent announcement may make him popular again.

You might ask what this "new giving" is all about, and what these men expect to receive in return for their philanthropy. Many might answer that these men are looking for tax benefits, and they would be correct in that charitable donations do receive tax consideration. The fact that the gifts were given as an annual benefit over ten years rather than as a lump sum substantiates the tax angle.

But let me ask you this - if you were worth several billion dollars, would you worry about taxes if you planned wisely? Frankly, I can live on less than $12,000 per year and I've proven it; so, a million or so dollars would be enough to make me happy, even if Uncle Sam received a full third of that money.

Instead, I think that there's a new trend in the air that demands some respect rather than suspicion. After being treated to the behaviors that many corporate CEOs have displayed over the past decade, it's refreshing to hear about entrepreneurs who want to give back to the world. And, I think that it might behoove any investor to watch where this money is going. By this, I mean that three men have agreed to give billions of dollars to charity, and these men are well versed in investments and in diversification. Instead of asking about what these men might receive for their giving, I think a better question would center on why they've invested in global development, global health, education, and green initiatives.

This is my opinion: These men have heart, but they're also smart. They aren't going to throw their fortunes to the wind, and all the above initiatives have a future. I'd like to see how a successful private entrepreneur would handle global development. And, it doesn't take a genius to realize why Gates is interested in global health and education when technology now plays such a large hand in their futures. I won't discuss alternative fuels, as I wrote about that issue a few weeks ago. Most of my readers know where I stand on this topic, both ethically and investment-wise.

Additionally, I believe that it wasn't by chance that Lou Dobbs (CNN) recently took a stand for a disappearing middle class in a country now occupied by 300 million people. He blames corporate America for the growing chasm between the rich and poor socio/economic classes in America. While not everyone agrees with Dobbs' perspectives, he points to historic problems that occur when a middle class disappears. Small problems, like uprisings, revolutions, and political instability.

I have no doubt in my mind that Gates, Buffet, and Branson know what could happen if the middle class truly disappeared. The rich would no longer be rich. Just ask Marie Antoinette. Skimming some cream off the top is a wise move and the timing is right. Buffet, Gates, and Branson have stepped up to the challenge, and my hat is off to them and to any other millionaire or billionaire who follows their lead.

Until Next Week,
Linda Goin