Todd Combs, portfolio manager and head of investments at Berkshire Hathaway, arrives to attend the morning session of the Allen & Company Media & Technology Conference on Friday, July 12, 2019 in Sun Valley, Idaho, USA.
Patrick T. Fallon/Bloomberg/Getty Images
Warren Buffett’s Berkshire Hathaway announced a number of structural changes before its legendary CEO steps down at the end of this year, including the departure of investment manager and Geico CEO Todd Combs.
Combs, 54, is also scheduled to participate. JP Morgan Chase As head of the bank’s new security and resiliency initiatives, you will find direct equity investments in the defense, aerospace, healthcare and energy industries.
Mr. Buffett, 95, said in a press release from Berkshire that Mr. Combs “has resigned to accept an interesting and important job at J.P. Morgan.” “Todd made a lot of great hires at Geico and expanded his horizons. As always, JPMorgan made a good decision.”
Combs joined Berkshire in 2010 from his hedge fund, Castle Point, where he and Ted Weschler were brought in to help manage Berkshire’s investment portfolio. Buffett is set to hand over the CEO reins to Greg Abel in 2026, and Combs’ departure leaves questions about how Berkshire’s large stake will be handled. apple, bank of america and coca colaEven after he retires, he will continue to manage the company.
Berkshire’s stock price fell on Monday following the leadership change, amid concerns that other executives may resign if Buffett is no longer at the helm. Berkshire’s B shares have recently fallen about 2.5%.
Other notable changes at Berkshire include Chief Financial Officer Mark Hamburg, who will retire in June 2027 after 40 years under Buffett. His successor will be Charles Chan, Berkshire Hathaway Energy’s current chief financial officer (CFO). Nancy Pierce, Geico’s chief operating officer, will replace Combs as Geico’s CEO.
The conglomerate also announced that Adam Johnson, CEO of NetJets, will take on a new role as president of Berkshire’s consumer products, services and retail business. Mr. Abel will directly oversee the remaining non-insurance businesses, Berkshire said.
JPMorgan’s $1.5 trillion commitment
Combs, who previously served on JPMorgan’s board of directors, will also serve as special advisor to CEO Jamie Dimon. Mr. Combs will relinquish his seat on the board to take on a new role.
“Todd Combs is one of the greatest investors and leaders I know, and he has successfully managed investments alongside Warren Buffett, one of the most respected and successful long-term investors of our time,” Dimon said in a release. “Having served on our board for nine years, he truly understands all aspects of our company and supports the role we play in making the world better and safer for all.”
Mr. Combs plans to commit an initial $10 billion to JPMorgan’s new initiative, but said the bank would eventually spend $1.5 trillion to spur economic growth and “make the world safer.”
The Security and Resilience Initiative will be guided by an external council that includes Amazon’s Jeff Bezos, Dell Chairman Michael Dell, former Defense Secretary Robert Gates, and former Secretary of State Condoleezza Rice.
Berkshire B stock year-to-date
Despite his advanced age, Mr. Buffett surprised shareholders by saying at the conglomerate’s annual general meeting in May that he would step down to replace Mr. Abel, 63, who currently serves as vice chairman of non-insurance operations. The stock has underperformed this year, in part because of concerns about what Berkshire will look like after Mr. Buffett, who bought the textile maker in 1965 and turned it into an investment holding company with an unprecedented long-term track record.
Berkshire stock has risen 9% since the beginning of the year, lagging the S&P 500’s return of 16.6%. Buffett, who remains chairman, said in his Thanksgiving message that while he still feels good, progress is slow and reading is becoming “increasingly difficult.”
