Warren Buffett's company Berkshire Hathaway (BRK.A 0.33%)(BRK.B 0.36%) is going to look different in 2026. Buffett, of course, is stepping down as the company's chief executive officer, to be replaced by longtime company executive Greg Abel.
However, that's not the only major change in the executive ranks. Todd Combs, who was once considered a possible replacement for the Berkshire CEO, is also departing to take a high-level position at top U.S. bank JPMorgan Chase (JPM 2.27%). Here's a look at his new job and how this move might affect both his former and current employers.
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Key Data Points
Banking on the ex-Berkshire exec
Combs, notable for being one of Berkshire's top investment lieutenants (along with Ted Weschler) brought in to potentially succeed Buffett, jumped ship to JPMorgan Chase in December. The bank announced that Combs would be a key figure in its recently announced Security and Resiliency Initiative (SRI).
Image source: JPMorgan Chase.
The SRI is an interesting beast. JPMorgan Chase launched it in October, earmarking $1.5 trillion over a 10-year stretch to provide financial support to enterprises deemed strategic to the national interest. In its press release trumpeting the new business unit, the bank wrote that its rollout "comes at a time when the U.S. is looking to modernize infrastructure, fortify supply chains, and implement policies that promote growth."
The SRI's immediate plan is to make $10 billion worth of direct equity and venture capital investments in companies that can advance this goal. It almost goes without saying that most of these enterprises will be based in the U.S.
The SRI will concentrate on four segments of the economy: supply chain and advanced manufacturing (particularly in the healthcare field), defense/aerospace, energy, and "frontier" and strategic technology.
Combs will head an SRI unit called the strategic investment group. He will be tasked with finding investment opportunities for the $10 billion in mid- and large-sized businesses across those sectors.
The former Berkshire executive is no stranger to JPMorgan Chase, having served as a member of its board from September 2016 until he stepped down just before his appointment to SRI. In addition to his stock-picking skills, Combs has high managerial experience, serving as CEO of Berkshire's big insurance company GEICO from 2020 to 2025.
The man behind the Apple buy
Since precious few of us are either Berkshire Hathaway or JPMorgan Chase insiders, we can't know the reasons behind Combs's departure. It could be that he wasn't an ideal fit on Abel's team, or maybe he was offered a job that was just too exciting, potentially impactful, and/or lucratively compensated to refuse. All, some, or none of these could be factors.
Combs certainly had an impact on Berkshire's vaunted equity portfolio. He was instrumental in persuading the once famously tech-adverse Buffett to buy Apple, and to this day, it remains the largest holding in the portfolio by far. He was also apparently the person behind Berkshire's smaller stakes in Visa and Mastercard, which have nevertheless been outstanding, market-crushing plays.
However, with its more than six-decade history being led by the same man, Berkshire has been shaped by Buffett's investment approach. The great investor prefers businesses with high competitive moats and strong management teams that generate substantial cash flow and consistently report profits.
He's surrounded himself with individuals who share this philosophy, and given that this approach has worked brilliantly over the years, they're unlikely to stray from it. I predict it will be largely business as usual at Berkshire without Combs (and Buffett as CEO, naturally).
A more intriguing question is, what will Combs bring to the table at JPMorgan Chase? His position at SRI is as high-profile as it gets, and many eyes will be on him as he starts to make his picks for investment. He's been in the hot seat before, though, as one of the new guys at Berkshire some time ago, so I imagine he will be able to cope with the pressure.
Given that, along with Combs' clear investment acumen, I'd give SRI more than a decent chance of success. The initiative not only has an investment ace in Combs, but it's also being launched at a time when the current presidential administration has prioritized boosting domestic enterprises deemed strategic.
That one-two punch alone should land investment wins for both the bank and at least a few of the companies fortunate enough to be targeted for investment.
