On the eve of Buffett's retirement, Berkshire investment manager Todd joined JP Morgan to lead a $10 billion strategic investment group

Berkshire Hathaway's investment manager Todd Combs will leave to join JP Morgan, marking a new leadership transition for the $1.1 trillion conglomerate.

The 54-year-old investment manager, seen as one of Warren Buffett's potential successors, will become the head of JP Morgan's newly established Strategic Investment Group in 2026, managing $10 billion in funds, focusing on investments in defense, aerospace, healthcare, and energy—areas critical to U.S. national security. The group is viewed as an initiative to align with President Trump's "America First" policy.

Buffett announced this personnel change on Monday, along with a series of leadership adjustments. The 95-year-old Buffett is preparing to hand over the management of Berkshire to executive Greg Abel in the new year. Combs has been one of two investment managers at Berkshire and is also the CEO of the American auto insurance company Geico.

JP Morgan CEO Jamie Dimon referred to Combs as "one of the most outstanding investors and leaders I know." Combs has previously served on JP Morgan's board for nine years but will resign from the board to take on his new role.

Combs' Role Transition at Berkshire

Combs was hired by Buffett in 2010 when Berkshire was seeking to strengthen its investment capabilities for the post-Buffett era. Along with another investment deputy, Ted Weschler, he ultimately managed billions of dollars in assets within Berkshire's $283 billion stock portfolio.

Combs was considered a contender for the future Chief Investment Officer, responsible for overseeing the entire stock investment portfolio. In 2019, he was appointed CEO of Geico, one of Berkshire's most important companies, and was seen as a potential successor to Ajit Jain in leading Berkshire's broader insurance business.

However, Abel's promotion within the company raised questions about the future roles of Combs and Weschler. Buffett stated last year that he believes successors should have final authority over investment decisions, including how to deploy the company's cash into stock investments. Buffett noted in a statement that Combs "resigned to take an interesting and important job at JP Morgan... JP Morgan has once again made the right decision."

Other Leadership Changes at Berkshire

Berkshire also announced several significant personnel adjustments. Geico's Chief Operating Officer Nancy Pierce will succeed Combs as head of one of America's largest auto insurance companies.

Marc Hamburg, the Chief Financial Officer who has worked at Berkshire for 40 years, will retire in 2027, with Charles Chang, the CFO of Berkshire's energy division, taking over. This marks the first time Berkshire has appointed a successor for this position. Buffett praised Hamburg, stating:

"His contributions to the company have exceeded the imagination of many shareholders, and his impact has been extraordinary." Berkshire Hathaway has also appointed a General Counsel for the first time to lead its legal affairs. Michael O'Sullivan will take office in January next year; he was previously a partner at the law firm founded by the late Berkshire Vice Chairman Charlie Munger and has served as General Counsel for the instant messaging app Snap since 2017.

JP Morgan's Strategic Investment Plan

JP Morgan's $10 billion fund is part of the bank's $1.5 trillion financing commitment, which falls under its Safety and Resilience program. According to Reuters, the fund drew attention on Wall Street when it was announced last October, as it is uncommon for banks to hold equity in industrial companies.

Combs will be responsible for seeking investment opportunities in the defense, aerospace, healthcare, and energy sectors. He will work with JP Morgan's commercial and investment banking as well as asset and wealth management divisions to identify opportunities covering mid-market and large corporate clients.

JP Morgan also announced the establishment of an external advisory committee for the program, which includes technology company founders Jeff Bezos and Michael Dell, as well as public and private sector leaders like former U.S. Secretary of State Condoleezza Rice