(This is the Warren Buffett Watch newsletter, offering insights and updates on Warren Buffett and Berkshire Hathaway. Sign up here to get it delivered every Friday evening.)
Todd Combs’ unexpected exit from Berkshire Hathaway captured significant attention when it was revealed this week.
Additionally, there were multiple other personnel shifts in Monday’s three-page press release indicating the company is transitioning toward a more traditional framework as Warren Buffett prepares to hand over his CEO responsibilities to Greg Abel in under three weeks.
Combs is set to join JPMorgan Chase next month to lead a $10 billion “Strategic Investment Group” for the firm’s new $1.5 trillion “Security and Resiliency Initiative” aimed at assisting “companies in boosting their growth, fostering innovation and accelerating manufacturing, mainly in the U.S.”
Combs has served on JPM’s board since 2016 but will vacate that role as he embarks on his new position.
In its announcement, JPM’s Chairman and CEO Jamie Dimon praised Combs as “one of the most exceptional investors and leaders I’ve encountered.”
Buffett remarked in the Berkshire press release, “JPMorgan has, as is often the case, made a wise choice,” commending Combs for his role in “numerous excellent hires at GEICO.”
Combs, aged 54, became a part of Berkshire in 2010 as a portfolio manager.
In 2020, he assumed an additional position as CEO of Geico, Berkshire’s automotive insurer, leading to speculation regarding his potential to be Buffett’s successor.
During May’s annual meeting, insurance Chief Ajit Jain stated Combs “has significantly improved” Geico’s operations, highlighting advancements in “aligning rates with risk” and implementing telematics, which involves electronically monitoring policyholders’ driving for rate adjustments.
However, Jain added, “I still believe we must enhance our technology efforts.”
The responsibility of advancing technology at Geico now lies with its incoming CEO, Nancy Pierce, who has been promoted from chief operating officer. She has been with the insurer since 1986, when she began her career as a claims associate.
The matter of who will take over Combs’ responsibilities as portfolio manager remains uncertain.
Transforming the ‘Berkshire Way’
Buffett has indicated that Abel will oversee the portfolio, but it remains unclear how much authority will be assigned to the other portfolio manager, Ted Weschler.
Berkshire may also recruit one or more new portfolio managers, and Buffett himself, in his chairman capacity, could also step in to help cover the vacancy left by Combs.
Historically, Berkshire has been somewhat opaque about who manages the smaller assets in its portfolio and has not shared much regarding the performance records of its portfolio managers.
In correspondence to Buffett Watch, Christopher Davis of Hudson Value Partners encourages Berkshire to “increase transparency about the roles and responsibilities of Abel and Wechsler in managing the public equity portfolio.
“While we appreciate the ‘Berkshire way’, some adaptations are necessary, considering it is now a trillion-dollar entity experiencing its first leadership transition.”
Various aspects of this transition are steering the firm away from the renowned decentralized “Berkshire way.”
Greg Abel has already been exerting greater management control over the non-insurance operational entities than Buffett ever did.
Now, several of these companies are gaining an extra layer of management.
Adam Johnson, CEO and chairman of NetJets, has been assigned to the newly established position of “President of the Consumer Products, Service, and Retailing divisions of Berkshire Hathaway.”
Describing him as an “accomplished leader capable of delivering long-term shareholder value,” Abel mentions in Monday’s announcement that Johnson will “assist the exceptional CEOs of our 32 consumer products, service, and retailing sectors, while preserving Berkshire’s culture and values.”
The other non-insurance subsidiaries, including BNSF, Berkshire Hathaway Energy, and Pilot, will continue to report directly to Abel.
Berkshire is also appointing its first general counsel.
Michael O’Sullivan has held that position at Snap Inc. since 2017 after practicing law at Munger, Tolles & Olson for over two decades.
Previously, Berkshire relied on external law firms for its legal requirements.
(I wouldn’t be surprised if Berkshire develops investor, media, and government relations departments in its low-overhead Omaha headquarters sometime next year.
However, I don’t expect Berkshire to distribute dividends as long as Buffett continues working in the office.)
Lastly, Chief Financial Officer Marc Hamburg will retire next June after four decades at Berkshire.
In the announcement, Buffett stated that Hamburg has been “essential” and “has contributed more to this company than many shareholders will ever appreciate.”
His successor will be Charles Chang, CFO of Berkshire Hathaway Energy.
A substantial amount of change is unfolding for a company that has remained relatively stable through the years.
Analyst Meyer Shields from Keefe, Bruyette & Woods noted in the Wall Street Journal, “There’s a significant emotional investment in the continuity of Berkshire as a cultural entity, and notable changes understandably tend to generate more concern than excitement regarding the company’s dynamism. This isn’t the reason people invest in Berkshire Hathaway.”
KBW reduced Berkshire shares to “underperform” earlier this year, partly due to Buffett’s forthcoming departure.
Both the A and B shares managed to hold steady this week, declining nearly 1%, but remain more than 7% below their record highs reached in May, just prior to Buffett announcing his resignation as CEO at year-end.
BUCKETT AROUND THE WEB
Certain links may necessitate a subscription:
- CNBC Pro: Warren Buffett’s Berkshire Hathaway perfectly timed their Alphabet investment — intentionally or not
- Fortune on MSN: Warren Buffett: Business titan and magazine cover star
- Bloomberg podcast on YouTube: Berkshire’s New Top Boss Aims to Shape Buffett’s Empire
HIGHLIGHTS FROM THE ARCHIVES
What has been your most rewarding investment? (2005)
Warren Buffett and Charlie Munger share their thoughts on the most rewarding investments they have made throughout their careers.
AUDIENCE MEMBER: What has been the best investment of your careers?
WARREN BUFFETT: Likely, in terms of what it has achieved so far and its potential in the future, the best investment was the first half of GEICO, which we acquired for $40 million. The second half set us back $2 billion. I’m relieved I didn’t purchase it in segments. (Laughter)
But, realistically, that $40 million investment for half the company will ultimately yield considerable returns.
GEICO — while some of our ventures exhibit growth potential, others do not. We don’t necessarily require growth potential to define a business.
A business that generates solid profits allows us to acquire other businesses. One advantage of the Berkshire model is our tax-efficient and relatively frictionless method of allocating funds to the most promising ventures. Internally, GEICO still presents tremendous growth opportunities.
CHARLIE MUNGER: True, but GEICO, ultimately, cost $2 billion for the second half and —
WARREN BUFFETT: Yes.
CHARLIE MUNGER: — a significant sum for the first half as well.
The recruitment efforts that led us to Ajit Jain proved to be an investment that truly paid off.
I can’t recall any investment yielding a higher return than that one. (Applause)
That serves as an important life lesson. Namely, bringing the right individuals into your organization can often be more decisive than anything else.
BERKSHIRE STOCK MONITOR
Four weeks
Twelve months
BRK.A stock valuation: $748,887.00
BRK.B stock valuation: $499.52
BRK.B P/E (TTM): 15.97
Berkshire’s market capitalization: $1,077,426,505,703
Berkshire’s Cash as of September 30: $381.7 billion (An increase of 10.9% since June 30)
Excluding Rail Cash and Subtracting T-Bills Payable: $354.3 billion (An increase of 4.3% since June 30)
No shares of Berkshire have been repurchased since May 2024.
(All figures are accurate as of the publication date, unless stated otherwise)
BERKSHIRE’S LEADING EQUITY HOLDINGS – Dec. 12, 2025
Berkshire’s significant investments in publicly traded stocks across the U.S. and Japan, ranked by market valuation, based on the latest closing prices.
Investments are as of September 30, 2025, as detailed in Berkshire Hathaway’s 13F report dated November 14, 2025, apart from:
- Mitsubishi, based on August 28, 2025 and Mitsui, based on September 30, 2025. Tokyo Stock Exchange prices converted to U.S. dollars from Japanese yen.
The complete holdings and current market valuations can be found on CNBC.com’s Berkshire Hathaway Portfolio Tracker.
QUESTIONS OR FEEDBACK
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Moreover, Buffett’s letters to shareholders are highly recommended for reading. They are compiled here on Berkshire’s website.
— Alex Crippen, Editor, Warren Buffett Watch
(Correction: Corrects the spelling of Combs’ name.)
