The end of Berkshire? Combs’ departure is not as big a change as Buffett’s transition

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Todd Combs’ sudden departure from Berkshire leaves Hathaway most of the attention When it was announced this week.

However, several additional staff changes were made on Monday A three-page news release It’s a signal that Buffett is preparing to name Greg Abel his CEO in less than three weeks.

The Koombas go JPMorgan Chase Next month, the company’s new $1.5 trillion “Strategic Investment Group” will launch a $10 billion “Strategic Investment Group”Safety and Reliability Initiative“Helping Companies” boosts company growth, boosts innovation, and accelerates manufacturing innovation and acceleration, primarily in the United States. »

Coombs has been with JPM since 2016, but he will be leaving that position, but he will be taking on a new job.

In it News releaseJPM Chairman and CEO Jamie Dimon is “one of the greatest investors and leaders I’ve ever known.”

“JPMorg, as always, made a good decision,” Warren Buffett asked in Berkshire’s announcement.

Age 54, joined Berkshire in 2010 as a portfolio manager.

In 2020, he got an additional role CEO of GeicoThe Berkshire auto insurer, fueling speculation, could be Buffett’s future successor.

At the annual meeting in May, insurance chief Ajit Jain said combs »did a great job for us“Risk-appropriate” and “risk-enhancing” appropriate telematics, Electronic monitoring of policyholders during rate setting.

But Jane added, “I still think we need to order more technology.”

At Geico, the task of once again working on technology now falls to a new CEO, Nancy Pearce, who is moving from chief operating officer. He has been with the insurer since 1986, when it started as claims.

The question of who will accept the portfolio manager duties of the combers is still open.

Buffett said Abil will have overall responsibility for the portfolio, but it’s unclear how much of that responsibility will fall to another portfolio manager, TED WESCHLER.

Berkshire is also likely to hire one or more additional portfolio managers and Buffett himself, whose role as chairman will help fill the gaps in the portfolio.

Traditionally, Berkshire has been tight-lipped about who is responsible for smaller holdings in its portfolio, and hasn’t said much about portfolio managers’ records.

To e-mail buffet clock, Hudson’s Values ​​Christopher Davis Berkshire invites Berkshire to learn more about its role and responsibilities in managing Abel & Wechsler’s public equity portfolio.

“We all love the ‘Berkshire’ way, but there have to be a few concessions that this is a trillion-dollar enterprise going through its first leadership transition.”

Several aspects of that transition move the company away from the famous “Berkshire Way.”

Greg has exercised more management control over non-insurance operating companies than Abel Buffett.

Now some of them are getting an extra layer of management.

Adam JohnsonThe chairman and CEO of Netjets has been appointed to the newly created role of president, services and retail business of Berkshire Hathaway’s Consumer Products, Services and Retail business.

Calling him a “proven leader with a proven track record of long-term shareholder value,” Abel said in a Monday news release, Johnson will support the outstanding leaders of our 32 consumer products, services and retail businesses and support Berkshire’s culture and values.

The remaining non-insurance subsidiaries, including BNSF, Berkshire Hathaway Energy and Pilot, still report to Abel.

Berkshire will also receive its first general consultation.

Michael O’Sullivan served in this role at Snap Inc.

Until now, Berkshire had turned to in-house law firms to handle its legal problems.

(I wouldn’t be surprised if Berkshire incorporated its investor, media and government relations departments into its notoriously dysfunctional Omaha HQ sometime next year.

(On the other hand, I don’t think Berkshire will be paying dividends as long as it can take office.)

To conclude, in a traditional transition, MARC Hamburg’s chief financial officer will retire next June after 40 years at Berkshire.

In a news release, Buffett said Hamburg was “indispensable” and “has done more for this company than many of our shareholders.”

His successor is Berkshire Hathaway Energy, Charles Chand.

That’s a lot of change for a company that hasn’t changed much in years.

Keefe, Bruyette & Woods Analys Analys Analys Meyer shields Said about it The Wall Street Journal, “There’s a lot of emotional investment in Berkshire’s sustainable impact, because when you have decent-sized changes, it’s always more of a concern than your dynamics. This is why people are not pushing Berkshire Hathaway.”

CBI lowered Berkshire’s stock earlier this year, in part because of Buffett’s departure.

Both of them a again B accents Hurricanes have been pretty good this week, down about 1%, though they’re still not more than 7% off their all-time highs since Buffett, who will start as CEO.

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Member of the audience: What has been the single best investment of your career?

Warren Buffett: Probably the best investment we’ve ever made and where it’s going to go over time was the first half of GEICO, which we bought for $40 million. The second half was valued at $2 billion. I’m glad I didn’t buy it out of three. (Laughter)

But you’re about half of the 40 million wills – it turns out pretty well.

But Geiko – some of our businesses have growth potential, some don’t. We do not need growth potential within the business.

If the business can make good money and we can use it to buy other businesses, we can see one of the advantages of the Berkshire system is that we have a tax-efficient and kind of way to move money to the best opportunities. And Geiko, internally, still has great room for growth.

Charlie Munger: Well, but Geico, the second half will cost $2 billion and –

Warren Buffett: That’s right.

Charlie Munger: – in the first half of the year there are many tens of millions.

Now the search costs that brought us there were now investments in devs that really paid dividends.

I can’t think of a higher return investment that we’ve had better than this one. (Applause)

I think this is a good life lesson. In other words, getting the right people into your system may be more important than anything else.

Price of BRK.A BAY: $ 748,887.00

BRK.B stock price: $499.52

Brk.bp / e (TTM): 15.97

Berkshire’s market capitalization: $1,077,426,505,703

Berkshire Cash as of September 30: $381.7 billion. Dollar (10.9% from June 30)

Withdrawal of T-bills and withdrawal of T-bills excluding railway money: 354.3 billion. Dollar (4.3% from June 30)

There will be no Berkshire fund from 2024.

(All figures as of publication date unless otherwise noted)

Berkshire’s best-of-breed stocks in the US and Japan are based on their last closing price, at market value.

Holdings as of September 30, 2025, reported Berkshire Hathaway Branch 13F On November 14, 2025:

A complete list of holdings and current market values ​​is available at CNBC.com Berkshire Hathaway Portfolio Tracker.

Send me your questions and comments about the newsletter Alex.croippen@cnbc.com. (Sorry, but we won’t direct questions and comments to Buffett himself.)

If you can’t subscribe to this newsletter, you can sign up Here.

Also, Buffett’s annual letters to shareholders are highly recommended. Collected Here on Berkshire’s website.

– Alex Crippen, Editor, Warren Buffett Hours