The end of an era is becoming very real at Berkshire Hathaway. Just weeks before Warren Buffett's planned retirement at year-end, the company announced a sweeping leadership shakeup—including the departure of Todd Combs, one of Buffett's hand-picked investment lieutenants, for JPMorgan Chase.
For investors who've long wondered what Berkshire looks like without Buffett, we're about to find out.
The Key Changes
Todd Combs leaves for JPMorgan: Combs, 54, will lead JPMorgan's new Security and Resiliency Initiative, deploying $10 billion into defense, aerospace, healthcare, and energy investments. He'd been with Berkshire since 2010 and was considered a potential future chief investment officer.
CFO Marc Hamburg retires: After 40 years with Berkshire, Hamburg is stepping down. Charles Chang, CFO of Berkshire Hathaway Energy, will take over in 2025.
Geico leadership change: Nancy Pierce, Geico's Chief Operating Officer, becomes CEO immediately, replacing Combs who had been running the insurer alongside his investment duties.
New operating structure: Adam Johnson, CEO of NetJets, will oversee Berkshire's consumer products, services, and retail businesses—creating a more defined organizational structure.
What Combs' Departure Means
Todd Combs wasn't just an employee—he was supposed to be part of Berkshire's future. Buffett hired him specifically to help manage the company's massive investment portfolio after Buffett was gone.
His departure raises questions:
Was he passed over? With Greg Abel set to become CEO in January, Combs may have seen limited upside remaining at Berkshire. Running $10 billion for JPMorgan with a mandate to build something new might have been more appealing than serving under new leadership.
What about Ted Weschler? Buffett's other investment manager, Ted Weschler, remains at Berkshire. He'll presumably take on greater responsibility for the stock portfolio, though the company hasn't made formal announcements.
Does this signal concerns? Buffett praised Combs warmly in the announcement. Jamie Dimon called him "one of the greatest investors and leaders I've known." The departure appears amicable—but the timing, just before Buffett's exit, is notable.
JPMorgan's Big Bet
JPMorgan's $10 billion Security and Resiliency Initiative is fascinating in its own right. The bank is essentially creating a private equity arm focused on national security-adjacent investments.
This reflects several trends:
- Growing government spending on defense and infrastructure
- Private capital increasingly flowing into strategic industries
- Banks seeking higher-return investments beyond traditional lending
Combs' value-investing background and operational experience at Geico make him well-suited for identifying undervalued opportunities in these sectors.
What This Means for Berkshire Investors
Short-term: Limited direct impact. Berkshire's value doesn't depend on any single person besides Buffett—and even that is increasingly debatable given the company's size and diversification.
Medium-term: The Greg Abel era begins in January. Watch for any changes in capital allocation philosophy, acquisition strategy, or investment approach. Abel's background is in operations, not investing—the portfolio may see less active management.
Long-term: Berkshire without Buffett is uncharted territory. The company has $325 billion in cash, a collection of wholly-owned businesses, and a $283 billion stock portfolio. How the next generation deploys those resources will determine whether Berkshire remains a market-beating investment or reverts to market returns.
The Buffett Premium Question
For years, analysts have debated whether Berkshire trades at a "Buffett premium"—an elevated valuation based on investor confidence in Buffett's stewardship. If that premium exists, it may erode post-retirement.
Counter-argument: Berkshire's businesses generate cash regardless of who's in charge. See's Candies, BNSF Railway, and Berkshire Hathaway Energy don't need Buffett's daily involvement to be profitable.
How to Position
If you own Berkshire: The investment thesis remains intact but is evolving. If you bought for Buffett's genius, reassess. If you bought for the business quality and cash-generation, nothing fundamental has changed.
If you're considering buying: The transition creates uncertainty, and uncertainty sometimes creates opportunity. If Berkshire trades down on leadership concerns, that could be a buying opportunity—the underlying businesses don't change because of headlines.
Diversification reminder: No single stock should dominate your portfolio, regardless of how legendary its leader. Berkshire's transition is a reminder that all companies eventually face succession.
The Bottom Line
The Berkshire Hathaway that emerges in 2025 will be different from the one Buffett built. Key lieutenants are departing. New leadership is taking over. The era of a single genius allocating capital across a vast empire is ending.
That's not necessarily bad—it's just different. Companies evolve. The question for investors is whether post-Buffett Berkshire remains an exceptional company or becomes merely a good one.
Either way, the changes announced today mark a watershed moment in American corporate history. The Oracle of Omaha's successor—Greg Abel—now has just weeks to prepare for one of the biggest jobs in business.
