(That is the Warren Buffett Watch e-newsletter, information and evaluation on all issues Warren Buffett and Berkshire Hathaway. You possibly can join right here to obtain it each Friday night in your inbox.)
Todd Combs’ shock departure from Berkshire Hathaway obtained many of the consideration when it was introduced this week.
There have been additionally, nevertheless, a number of extra personnel adjustments in Monday’s three-page information launch that sign the corporate is shifting towards a extra typical construction as Warren Buffett prepares to switch his CEO title to Greg Abel in lower than three weeks.
Todd Combs in 2014 CNBC interview
Combs goes to JPMorgan Chase subsequent month to move a $10 billion “Strategic Funding Group” for the corporate’s new $1.5 trillion “Safety and Resiliency Initiative” to assist “firms improve their progress, spur innovation and speed up manufacturing, primarily in america.”
Combs has been on JPM’s board since 2016 however is leaving that publish as he takes the brand new job.
In its information launch, JPM’s Chairman and CEO Jamie Dimon known as Combs “one of many biggest traders and leaders I’ve recognized.”
In Berkshire’s announcement, Warren Buffett is quoted as saying “JPMorgan, as normally is the case, has made choice,” praising Combs for making “many nice hires at GEICO.”
Combs, who’s 54 years outdated, joined Berkshire in 2010 as a portfolio supervisor.
In 2020, he obtained an extra function as CEO of Geico, Berkshire’s auto insurer, including to hypothesis he would possibly turn into Buffett’s future successor.
At Could’s annual assembly, insurance coverage Chief Ajit Jain mentioned Combs “has carried out an amazing job for us when it comes to turning round” Geico’s operations, citing enhancements in “matching fee to danger” and incorporating telematics, the digital monitoring of how policyholders drive, in setting charges.
However Jain added, “I nonetheless assume we have to do extra in know-how.”
The duty of doing extra in know-how at Geico now belongs to its new CEO, Nancy Pierce, who strikes up from chief working officer. She’s been on the insurer since 1986, when she began as a claims affiliate.
The query of who might be assuming Combs’ duties as portfolio supervisor, nevertheless, remains to be open.
Altering the ‘Berkshire Method’
Buffett has been saying Abel can have general accountability for the portfolio, nevertheless it’s not clear how a lot of that accountability might be delegated to the opposite portfolio supervisor, Ted Weschler.
Berkshire might additionally rent a number of extra portfolio managers and Buffett himself, in his function as chairman, might assist fill the hole left by Combs.
Historically, Berkshire has been opaque about who’s been answerable for the smaller holdings in its portfolio and hasn’t mentioned a lot in regards to the portfolio managers’ monitor information.
In an e-mail to Buffett Watch, Hudson Worth Companions’ Christopher Davis urges Berkshire to “turn into extra clear in regards to the roles and duties of Abel and Wechsler in managing the general public fairness portfolio.
“All of us love the ‘Berkshire manner’, however there must be some concessions to the actual fact it’s now a trillion-dollar enterprise present process its first management transition.”
Todd Combs walks to the morning session of the annual Allen and Co. Solar Valley media convention in Solar Valley, Idaho, U.S. July 7, 2021.
Brian Losness | Reuters
A number of aspects of that transition are shifting the corporate away from the famously decentralized “Berkshire manner.”
Greg Abel has already been exercising extra administration oversight over the non-insurance working firms than Buffett ever did.
Now a few of them are getting an extra layer of administration.
Adam Johnson, the chairman and CEO of NetJets, has been appointed to the newly created function of “President of the Shopper Merchandise, Service and Retailing companies of Berkshire Hathaway.”
Calling him an “achieved chief with a confirmed capacity to ship long-term shareholder worth,” Abel says in Monday’s information launch that Johnson will “assist the excellent CEOs of our 32 client merchandise, service and retailing companies, and uphold Berkshire’s tradition and values.”
The remaining non-insurance subsidiaries, together with BNSF, Berkshire Hathaway Vitality, and Pilot, will nonetheless be reporting on to Abel.
NetJets CEO Adam Johnson. (NetJets.com)
Berkshire can also be getting its first common counsel.
Michael O’Sullivan served in that function at Snap Inc. since 2017 after training regulation at Munger, Tolles & Olson for greater than 20 years.
Up till now, Berkshire has turned to exterior regulation corporations to deal with its authorized issues.
(I would not be shocked to see Berkshire add investor, media, and authorities relations departments to its notoriously low-overhead Omaha HQ in some unspecified time in the future subsequent 12 months.
I do not assume, then again, that Berkshire might be paying a dividend so long as Buffett continues to come back into the workplace.)
Lastly, in a extra conventional transition, Chief Monetary Officer Marc Hamburg will retire subsequent June after 40 years at Berkshire.
Within the information launch, Buffett mentioned Hamburg has been “indispensable” and “has carried out extra for this firm than lots of our shareholders will ever know.”
His successor might be Berkshire Hathaway Vitality CFO Charles Chang.
It is quite a lot of change for a corporation that hasn’t modified a lot over time.
Keefe, Bruyette & Woods analyst Meyer Shields instructed the Wall Road Journal, “There’s a lot emotional funding within the persistence of Berkshire as a tradition that when you will have decent-sized adjustments, that is going to trigger extra fear than jubilation over the corporate’s dynamism. That is not why individuals personal Berkshire Hathaway.”
KBW downgraded Berkshire shares to “underperform” earlier this 12 months, partially as a consequence of Buffett’s impending departure.
Each the A and B shares weathered the storm fairly effectively this week, falling nearly 1%, though they’re nonetheless down greater than 7% from their all-time highs in Could, simply earlier than Buffett revealed he would step down as CEO on the finish of the 12 months.
BUFFETT AROUND THE INTERNET
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HIGHLIGHTS FROM THE ARCHIVE
What has been your greatest funding? (2005)
AUDIENCE MEMBER: What has been the only greatest funding of your careers?
WARREN BUFFETT: Most likely, when it comes to what it is carried out already and the place it is going to go over time, most likely the only greatest funding was the primary half of GEICO, which we bought for $40 million. Now the second half price us 2 billion. I am glad I did not purchase it in thirds. (Laughter)
However, you understand, that 40 million will — for half the corporate — will end up very effectively.
However GEICO — a few of our companies have progress potential, some do not. And we do not require progress potential as a part of a enterprise.
If a enterprise makes good cash and we are able to use it to purchase different companies, one of many benefits of the Berkshire system is we’ve a tax environment friendly and form of frictionless manner of shifting cash to the most effective alternatives. And GEICO, internally, has nonetheless monumental potentialities for progress.
CHARLIE MUNGER: Nicely, however GEICO, in any case, price $2 billion for the second half and —
WARREN BUFFETT: Proper.
CHARLIE MUNGER: — a big variety of tens of thousands and thousands for the primary half.
Now the search bills that introduced us Ajit Jain, now there was an funding that basically paid a dividend.
I can consider no greater return funding that we have ever made that was higher than that one. (Applause)
And I feel that is life lesson. In different phrases, getting the fitting individuals into your system can regularly be extra necessary than the rest.
BERKSHIRE STOCK WATCH
BRK.A inventory value: $748,887.00
BRK.B inventory value: $499.52
BRK.B P/E (TTM): 15.97
Berkshire market capitalization: $1,077,426,505,703
Berkshire Money as of September 30: $381.7 billion (Up 10.9% from June 30)
Excluding Rail Money and Subtracting T-Payments Payable: $354.3 billion (Up 4.3% from June 30)
No Berkshire inventory repurchases since Could 2024.
(All figures are as of the date of publication, except in any other case indicated)
BERKSHIRE’S TOP EQUITY HOLDINGS – Dec. 12, 2025
Berkshire’s high holdings of disclosed publicly traded shares within the U.S. and Japan, by market worth, primarily based on the newest closing costs.
Holdings are as of September 30, 2025, as reported in Berkshire Hathaway’s 13F submitting on November 14, 2025, aside from:
The complete record of holdings and present market values is on the market from CNBC.com’s Berkshire Hathaway Portfolio Tracker.
QUESTIONS OR COMMENTS
Please ship any questions or feedback in regards to the e-newsletter to me at alex.crippen@cnbc.com. (Sorry, however we do not ahead questions or feedback to Buffett himself.)
If you happen to aren’t already subscribed to this text, you may join right here.
Additionally, Buffett’s annual letters to shareholders are extremely really useful studying. There are collected right here on Berkshire’s web site.
— Alex Crippen, Editor, Warren Buffett Watch
(Correction: Fixes misspelling of Combs’ title.)
