Todd Combs, once considered a potential successor to Warren Buffett, is making a major career shift. After over a decade at Berkshire Hathaway, he will join Wall Street giant JPMorgan Chase to lead a new $10 billion strategic investment fund.
This move not only marks a reinvention for Combs but also highlights the evolving power dynamics within Berkshire in the post-Buffett era, as well as JPMorgan’s ambitions in strategic investing.
JPMorgan announced this week that Combs will officially assume his new role in January, overseeing the newly established Security and Resiliency Investment Fund.
The transition comes as Combs’ future at Berkshire grew uncertain. With Greg Abel set to succeed Buffett as CEO on January 1 and Buffett stating that the new CEO will have final say on investment decisions, Combs’ departure appears a logical career move.
JPMorgan CEO Jamie Dimon warmly welcomed the hire, telling the Financial Times that when Combs expressed interest in the role, he responded, “If you have even the slightest interest, we’re all in.” Dimon called JPMorgan a “natural home” for Combs.
Buffett, meanwhile, praised the move, saying JPMorgan made “another great decision.”
**A Once-Promising Successor** Combs joined Berkshire in 2010 alongside fellow external manager Ted Weschler, both seen as top contenders to succeed Buffett as chief investment officer.
By 2021, the duo managed a $34 billion stock portfolio for Berkshire. Combs also became CEO of Berkshire’s insurance giant Geico in 2020.
However, while both initially delivered strong returns, their performance reportedly waned over time. Buffett admitted in 2019 that their results “slightly trailed” the S&P 500. A 2024 analysis showed their returns lagged both the index and Buffett’s own portfolio over the past decade.
When Buffett later clarified that the next CEO would oversee investments, questions arose about Combs’ and Weschler’s roles.
**A New Mission at JPMorgan** At JPMorgan, Combs will face a fresh challenge: directing equity investments in companies critical to U.S. national security using the bank’s capital. The $10 billion Security and Resiliency fund is part of JPMorgan’s broader $1.5 trillion financing commitment to sectors like supply chains, defense, energy independence, and strategic tech.
For JPMorgan, investing directly in industrial firms is new territory. Dimon stressed these investments will be “100% commercial.” The bank’s first deal involves a stake in an Idaho-based company producing materials for hardened ammunition. Combs will identify and execute such opportunities, reporting directly to Dimon.
**From Hedge Funds to Investment Titan** The 54-year-old Combs has a strong finance background. After graduating from Florida State University and working at Progressive, he earned an MBA from Columbia Business School—Buffett’s alma mater.
He later worked at hedge fund Copper Arch before launching his own firm, Castle Point Capital, with backing from Stone Point Capital. Sources say his financial-sector-focused long-short fund delivered a 34% return over five years, including just a 5.7% loss during the 2008 crisis.
His research-intensive style—spending hours daily reading company filings—won admiration from Buffett and the late Charlie Munger. After meeting Munger, he secured an introduction to Buffett and joined Berkshire in 2010.
**Dimon’s Eye for Talent** Dimon first met Combs in 2014 during an Omaha visit, when Buffett introduced him as “my new guy Todd.” After a 35-minute conversation, Dimon deemed Combs “brilliant and thoughtful” and later invited him to join JPMorgan’s board in 2016.
When Dimon discussed the new investment initiative last November, Combs showed keen interest. Though his hiring sparked speculation about a potential CEO succession, JPMorgan stated it has strong internal candidates, with Combs focused solely on the new fund.
Comments