JPMorgan Chase has hired Todd Combs, a longtime protégé of Warren Buffett, to run a $10 billion investment group as part of the bank’s Security and Resiliency Initiative, which focuses on accelerating manufacturing.
Combs, a former hedge fund manager, joined Berkshire Hathaway in 2010 and was one of two investment managers picking stocks for the conglomerate. He also served as CEO of Geico. During the succession race to replace Buffett, Combs was positioned as a key leader to assist Greg Abel, who took over as CEO in January. Combs had also served nine years on JPMorgan’s board before his appointment.
Dimon said he called Buffett personally to inform him of the hire. Speaking at a U.S. Chamber of Commerce event in January, Dimon recounted the conversation: ‘It’s a free country, and people make their own decisions. I did call Warren. He probably wouldn’t have preferred it, but he said, “if he’s going anywhere, at least he’s going to you.”’ Buffett’s assistant confirmed the accuracy of Dimon’s account.
Since joining JPMorgan in January, Combs has already committed $5 billion of the initial $10 billion allocation, according to a recent announcement. In announcing the hire, Dimon praised Combs as ‘one of the greatest investors and leaders I’ve known, having successfully managed investments alongside the most respected and successful long-term investor of our time, Warren Buffett.’
University of Maryland finance professor David Kass, who runs a Warren Buffett blog, told Business Insider that Dimon may have viewed Combs as a close proxy for Buffett himself. ‘Although Dimon could not hire Buffett, he could hire one of his protégés,’ Kass said.
The move comes as Berkshire Hathaway transitions to new leadership. Buffett stepped down as CEO in January after 55 years at the helm and was replaced by Abel. The 96-year-old also officially stepped down as chairman last month, handing the role to his son Howard. Buffett remains on the board.
Dimon, 70, has been JPMorgan CEO since 2006 and has faced persistent questions about his retirement timeline. He told an audience in January he wanted to remain CEO for at least five more years. In June, the bank elevated Doug Petno and Troy Rohrbaugh to co-presidents, and Dimon said in July that his retirement timetable was essentially unchanged and ultimately up to the board.