End of 'The Berkshire Way'? Combs' departure isn't only big change as Buffett transition nears

(This is the Warren Buffett Watch newsletter, quality and investigation connected each things Warren Buffett and Berkshire Hathaway. You tin motion up here to person it each Friday evening successful your inbox.)

Todd Combs' astonishment departure from Berkshire Hathaway got most of the attention when it was announced this week.

There were also, however, respective further unit changes successful Monday's three-page quality release that awesome the institution is moving toward a much accepted operation arsenic Warren Buffett prepares to transportation his CEO rubric to Greg Abel successful little than 3 weeks.

Coombs is going to JPMorgan Chase next period to caput a $10 cardinal "Strategic Investment Group" for the company's caller $1.5 trillion "Security and Resiliency Initiative" to assistance "companies heighten their growth, spur innovation and accelerate manufacturing, chiefly successful the United States."

Coombs has been connected JPM's committee since 2016 but is leaving that station arsenic helium takes the caller job.

In its news release, JPM's Chairman and CEO Jamie Dimon called Combs "one of the top investors and leaders I've known."

In Berkshire's announcement, Warren Buffett is quoted arsenic saying "JPMorgan, arsenic usually is the case, has made a bully decision," praising Combs for making "many large hires astatine GEICO."

Combs, who is 54 years old, joined Berkshire successful 2010 arsenic a portfolio manager.

In 2020, helium got an further relation as CEO of Geico, Berkshire's car insurer, adding to speculation helium mightiness go Buffett's aboriginal successor.

At May's yearly meeting, security Chief Ajit Jain said Combs "has done a large occupation for america successful presumption of turning around" Geico's operations, citing improvements successful "matching complaint to risk" and incorporating telematics, the physics monitoring of however policyholders drive, successful mounting rates.

But Jain added, "I inactive deliberation we request to bash much successful technology."

The task of doing much successful exertion astatine Geico present belongs to its caller CEO, Nancy Pierce, who moves up from main operating officer. She's been astatine the insurer since 1986, erstwhile she started arsenic a claims associate.

The question of who volition beryllium assuming Combs' duties arsenic portfolio manager, however, is inactive open.

Buffett has been saying Abel volition person wide work for the portfolio, but it's not wide however overmuch of that work volition beryllium delegated to the different portfolio manager, Ted Weschler.

Berkshire could besides prosecute 1 oregon much further portfolio managers and Buffett himself, successful his relation arsenic chairman, could assistance capable the spread near by Combs.

Traditionally, Berkshire has been opaque astir who's been liable for the smaller holdings successful its portfolio and hasn't said overmuch astir the portfolio managers' way records.

In an email to Buffett Watch, Hudson Value Partners' Christopher Davis urges Berkshire to "become much transparent astir the roles and responsibilities of Abel and Wechsler successful managing the nationalist equity portfolio.

"We each emotion the 'Berkshire way', but determination needs to beryllium immoderate concessions to the information it is present a trillion-dollar endeavor undergoing its archetypal enactment transition."

Several facets of that modulation are moving the institution distant from the famously decentralized "Berkshire way."

Greg Abel has already been exercising much absorption oversight implicit the non-insurance operating companies than Buffett ever did.

Now immoderate of them are getting an further furniture of management.

Adam Johnson, the president and CEO of NetJets, has been appointed to the recently created relation of "President of the Consumer Products, Service and Retailing businesses of Berkshire Hathaway."

Calling him an "accomplished person with a proven quality to present semipermanent shareholder value," Abel says successful Monday's quality merchandise that Johnson volition "support the outstanding CEOs of our 32 user products, work and retailing businesses, and uphold Berkshire's civilization and values."

The remaining non-insurance subsidiaries, including BNSF, Berkshire Hathaway Energy, and Pilot, volition inactive beryllium reporting straight to Abel.

Berkshire is besides getting its archetypal wide counsel.

Michael O'Sullivan served successful that relation astatine Snap Inc. since 2017 aft practicing instrumentality astatine Munger, Tolles & Olson for much than 2 decades.

Up until now, Berkshire has turned to extracurricular instrumentality firms to grip its ineligible matters.

(I wouldn't beryllium amazed to spot Berkshire adhd investor, media, and authorities relations departments to its notoriously low-overhead Omaha HQ astatine immoderate constituent adjacent year.

I don't think, connected the different hand, that Berkshire volition beryllium paying a dividend arsenic agelong arsenic Buffett continues to travel into the office.)

Finally, successful a much accepted transition, Chief Financial Officer Marc Hamburg volition discontinue adjacent June aft 40 years astatine Berkshire.

In the quality release, Buffett said Hamburg has been "indispensable" and "has done much for this institution than galore of our shareholders volition ever know."

His successor volition beryllium Berkshire Hathaway Energy CFO Charles Chang.

It's a batch of alteration for a institution that hasn't changed overmuch implicit the years.

Keefe, Bruyette & Woods expert Meyer Shields told the Wall Street Journal, "There's truthful overmuch affectional concern successful the persistence of Berkshire arsenic a civilization that erstwhile you person decent-sized changes, that's going to origin much interest than jubilation implicit the company's dynamism. That's not wherefore radical ain Berkshire Hathaway."

KBW downgraded Berkshire shares to "underperform" earlier this year, successful portion owed to Buffett's impending departure.

Both the A and B shares weathered the tempest beauteous good this week, falling astir 1%, though they are inactive down much than 7% from their all-time highs successful May, conscionable earlier Buffett revealed helium would measurement down arsenic CEO astatine the extremity of the year.

AUDIENCE MEMBER: What has been the azygous champion concern of your careers?

WARREN BUFFETT: Right.

CHARLIE MUNGER:  — a important fig of tens of millions for the archetypal half.

Now the hunt expenses that brought america Ajit Jain, present determination was an concern that truly paid a dividend.

I tin deliberation of nary higher instrumentality concern that we've ever made that was amended than that one. (Applause)

And I deliberation that's a bully beingness lesson. In different words, getting the close radical into your strategy tin often beryllium much important than thing else. 

BRK.A banal price: $748,887.00

BRK.B banal price: $499.52

BRK.B P/E (TTM): 15.97

Berkshire marketplace capitalization: $1,077,426,505,703

Berkshire Cash arsenic of September 30: $381.7 cardinal (Up 10.9% from June 30)

Excluding Rail Cash and Subtracting T-Bills Payable: $354.3 cardinal (Up 4.3% from June 30)

No Berkshire banal repurchases since May 2024.

(All figures are arsenic of the day of publication, unless different indicated)

Berkshire's apical holdings of disclosed publically traded stocks successful the U.S. and Japan, by marketplace value, based connected the latest closing prices.

Holdings are arsenic of September 30, 2025, arsenic reported in Berkshire Hathaway's 13F filing on November 14, 2025, but for:

•  Mitsubishi, which is arsenic of August 28, 2025 and Mitsui, which is arsenic of September 30, 2025. Tokyo Stock Exchange prices are converted to U.S. dollars from Japanese yen.

The afloat database of holdings and existent marketplace values is disposable from CNBC.com's Berkshire Hathaway Portfolio Tracker.

Please nonstop immoderate questions oregon comments astir the newsletter to maine at alex.crippen@cnbc.com. (Sorry, but we don't guardant questions oregon comments to Buffett himself.)

If you aren't already subscribed to this newsletter, you tin motion up here.

Also, Buffett's yearly letters to shareholders are highly recommended reading. There are collected here connected Berkshire's website.

-- Alex Crippen, Editor, Warren Buffett Watch