In an interview Monday with CNBC's "Squawk Box," Buffett said his company will give $1 million a year for life to any employee who guesses which teams will play in the NCAA men's basketball tournament's round of 16, or "Sweet 16."
"We also have a prize of $100,000 for whoever goes the furthest," Buffett said. "Last year, we had two fellows that tied. One of them knew a lot about basketball; the other didn't know anything about basketball, but they each got $50,000 out of it."
Buffett also said he expects more than 100,000 contest entries, topping last year's more than 85,000.
The tournament starts March 14 and concludes April 3.
Buffett has been a long-time basketball fan. In 2014, Berkshire insured privately-held Quicken Loans' contest offering $1 billion for the perfect March Madness bracket, the odds of which were 1 in 9.2 quintillion.
CORRECTION: This story has been updated to reflect that
Quicken Loans is privately held and that Berkshire insured Quicken's 2014 contest.