-
One of Warren Buffett’s key deputies is leaving Berkshire Hathaway.
-
Todd Combs, the CEO of Berkshire-owned Geico, is joining JPMorgan to head up a new unit.
-
The announcement comes alongside several executive changes ahead of Buffett’s retirement as CEO.
One of Warren Buffett’s top lieutenants is leaving Berkshire Hathaway to join JPMorgan.
Todd Combs, one of Buffett’s two investment managers alongside Ted Weschler, and the CEO of Berkshire-owned Geico, will lead JPMorgan’s $10 billion Strategic Investment Group, part of its new Security and Resiliency Initiative.
The initiative is aimed at helping companies to accelerate growth, boost innovation, and bolster manufacturing, particularly in the US, according to JPMorgan’s website.
Buffett said in a press release that Combs “has resigned to accept an interesting and important job at JPMorgan.”
“Todd made many great hires at GEICO and broadened its horizons,” Buffett wrote. “JPMorgan, as usually is the case, has made a good decision.”
Combs, a former hedge fund manager, joined Berkshire in 2010 to help manage Berkshire’s roughly $300 billion stock portfolio. He took over as Geico’s CEO at the start of 2020 and has led the car insurer’s rebound in recent quarters.
In a press release, JPMorgan said that Combs will be a special advisor to CEO Jamie Dimon. Dimon wrote that Combs is “one of the greatest investors and leaders I’ve known” and said that after spending nine years on JPMorgan’s board, he “truly understands all aspects of our company.”
“I deeply value Todd’s experience, character and judgment, and we are honored he will be joining our team in this role,” Dimon added.
Combs wrote that he’s “seen up close the quality of the individuals who lead this firm and their commitment to always doing the right thing and helping communities around them.” He added that the SRI is a “perfect example of this — committing $1.5 trillion to spurring economic growth and innovation to make the world more secure.”
Berkshire’s Class B shares fell 0.6% in premarket trading on Monday, while JPMorgan shares rose 0.5%.
Big changes at Berkshire
Berkshire announced several other leadership changes on Monday, ahead of Greg Abel succeeding Buffett as CEO in the new year. Geico’s operating chief, Nancy Pierce, has replaced Combs as the car insurer’s CEO.
NetJets CEO Adam Johnson is now the president of the conglomerate’s consumer products, service, and retailing businesses, while Abel will continue to oversee the other non-insurance businesses as Berkshire CEO, including the BNSF Railway and Berkshire Hathaway Energy (BHE).
Marc Hamburg, Berkshire’s finance chief and a senior vice president, will retire in June 2027 after 40 years at the company.
“Marc has been indispensable to Berkshire and to me. His integrity and judgment are priceless. He has done more for this company than many of our shareholders will ever know,” Buffett wrote. “His impact has been extraordinary.”
Berkshire also disclosed that Charles Chang, BHE’s finance chief and senior vice president, will succeed Hamburg in June 2026.
Michael O’Sullivan — who has been Snap’s general counsel since 2017 and previously worked for more than two decades at the late Charlie Munger‘s law firm, Munger, Tolles & Olson — will join Berkshire as a senior vice president and general counsel in the new year.
Read the original article on Business Insider