JPMorgan Taps Berkshire Hathaway's Todd Combs to Lead New $10B Fund
Warren Buffett's top lieutenant and GEICO CEO will head a new strategic investment group, signaling a major talent win for the banking giant.
JPMorgan Chase has landed one of the most respected minds in investing, poaching Todd Combs from Berkshire Hathaway to spearhead a new $10 billion strategic investment group. Combs, a key investment manager for Warren Buffett and the chief executive of GEICO, is seen as a significant hire that underscores the banking giant’s focus on long-term, direct equity investments in critical U.S. industries.
The move, confirmed in a company announcement, positions Combs at the helm of a new division aimed at bolstering companies in sectors like defense, aerospace, healthcare, and energy. His departure from Berkshire Hathaway, where he was widely considered a potential successor to Buffett in managing the firm's colossal investment portfolio, represents a major coup for JPMorgan and its CEO, Jamie Dimon.
Shares of JPMorgan Chase traded modestly in the session following the news, though the strategic implications of the hire reverberated across Wall Street. With a market capitalization of over $866 billion, JPMorgan is already a dominant force in global finance. The addition of a high-caliber investor like Combs signals a strategic pivot toward deploying its vast balance sheet into direct, long-term corporate stakes.
"Todd Combs is one of the greatest investors and leaders I have ever had the privilege of knowing," said Jamie Dimon, Chairman and CEO of JPMorgan Chase. "His deep understanding of our company and the global financial landscape, combined with his proven track record of long-term value creation, makes him the perfect person to lead this critical new initiative."
Combs, who joined Berkshire Hathaway in 2010, has been responsible for managing a significant portion of the conglomerate's portfolio alongside Ted Weschler. His role expanded in 2020 when he took the reins as CEO of GEICO, a major Berkshire subsidiary, giving him crucial operational experience. He has served on JPMorgan's board for nine years, a position he has now resigned from to take on the executive role, as reported by The Wall Street Journal.
The new Strategic Investment Group is part of a broader, $1.5 trillion Security and Resiliency Initiative (SRI) at the bank, designed to accelerate innovation and manufacturing, primarily in the United States. To guide this effort, JPMorgan also announced a star-studded external advisory council. Chaired by Dimon, the council includes Amazon founder Jeff Bezos, Dell Technologies CEO Michael Dell, and former U.S. Secretaries of State Condoleezza Rice and Robert Gates.
The appointment is a clear signal of JPMorgan's intent to play a more active role in industrial and economic development, leveraging its capital and strategic expertise. For Berkshire Hathaway, Combs's departure marks a significant change in its long-term succession plans, a topic of keen interest to investors for years. While Warren Buffett has expressed full confidence in the team that will follow him, the loss of a top lieutenant is notable.
According to the latest data, JPMorgan Chase has a forward price-to-earnings ratio of 14.84 and a strong balance sheet with a return on equity of over 16%. Analysts hold a generally positive view of the stock, with 14 analysts rating it as a "Buy" or "Strong Buy" against 11 holds or sells. The new strategic fund under Combs could provide a new avenue for growth and further solidify the bank's central role in the U.S. economy.