Berkshire Hathaway (BRK.A / BRK.B) has announced that Todd Combs, one of Warren Buffett’s top investing lieutenants, is departing the company to join JPMorgan Chase (JPM).
Combs’ departure was announced along with a number of structural changes ahead of Buffett’s retirement as Berkshire’s CEO at year’s end.
Warren Buffet is aged 95, but will remain chair of Berkshire Hathaway’s board of directors. Canadian businessman Greg Abel is replacing Buffett in the CEO role.
Combs, age 54, also served as CEO of Geico, one of several insurance companies Berkshire Hathaway owns outright. The insurance unit is one of the most profitable at Berkshire.
Combs is leaving to join JPMorgan Chase, the largest U.S. bank, where he already serves on the board of directors.
At JPMorgan, Combs will serve as head of the bank’s Security and Resiliency Initiative, where he will direct equity investments in the defense, aerospace, healthcare and energy sectors.
In a news release announcing Combs departure, Buffett said “Todd made many great hires at GEICO and broadened its horizons. JPMorgan, as usually is the case, has made a good decision.”
Combs joined Berkshire Hathaway in 2010 from his hedge fund Castle Point and was brought in, along with Ted Weschler, to help manage Berkshire’s stock portfolio.
While Buffett continued to manage most of Berkshire’s massive equity portfolio worth $313.56 billion U.S., Combs and Weschler were estimated to manage about 25% to 30% of the holdings.
With Buffett stepping down as CEO in a few weeks, questions have been raised as to how the equity holdings of Berkshire, which include massive stakes in Apple (AAPL) and Coca-Cola (KO), will be managed.
Combs, who is stepping down from JPMorgan’s board of directors, will also serve as a special advisor to the bank’s CEO Jamie Dimon.
“Todd Combs is one of the greatest investors and leaders I’ve known, having successfully managed investments alongside the most respected and successful long-term investor of our time, Warren Buffett,” said Dimon in the news release.
Berkshire Hathaway’s more affordable Class B stock is up 12% this year and trading at $504.34 U.S. per share.
