Todd Combs, Key Investment Manager, Just Left Berkshire Hathaway for JPMorgan Chase. Does the Shakeup Bode Well For the Stock?

Earlier this year, Warren Buffett announced that helium would measurement down arsenic main enforcement serviceman of Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) aft six decades astatine the helm of the company. If investors didn't deliberation the times were changing then, they apt cognize now. Recently, Berkshire announced a large shake-up to its halfway absorption group. Todd Combs, who joined Berkshire successful 2010 and managed a information of Berkshire's tremendous $312 cardinal equities portfolio, is leaving the company.

Berkshire besides precocious announced respective different important changes. Does this bode good for the stock?

When Buffett, who is present 95 years old, announced that helium would measurement down, helium besides appointed Greg Abel, vice seat of Berkshire's non-insurance operations and seat of Berkshire Hathaway Energy, arsenic the caller CEO.

Nobody expects Abel to ever capable the ample shoes near by Buffett, who volition apt spell down arsenic the top capitalist of each time. However, determination person been galore questions astir however Abel would pb the company, particularly fixed Berkshire's comparatively blimpish attack successful caller years, which included gathering a immense hoard of cash. Investors conscionable got their archetypal clue, with a slew of absorption changes:

• NetJets CEO Adam Johnson volition go president of the user products, service, and retailing businesses of Berkshire Hathaway, effectual immediately, portion continuing successful his relation astatine NetJets.

• Nancy Pierce, the existent main operating serviceman of GEICO, volition go CEO of GEICO.

• Berkshire's elder vice president and main fiscal officer, Marc Hamburg, volition discontinue from Berkshire connected June 1, 2027, aft 40 years of service. Charles Chang, the existent CFO of Berkshire Hathaway Energy, volition regenerate Hamburg upon retirement.

• Michael O'Sullivan volition go elder vice president and wide counsel, starting connected Jan. 1. O'Sullivan comes to Berkshire from Snap, wherever helium served arsenic the wide counsel. This is simply a caller relation astatine Berkshire.

However, arguably the astir notable alteration is the departure of Combs, who, successful summation to managing a information of Berkshire's concern portfolio, was besides the CEO of GEICO.

Combs, who antecedently served connected JPMorgan Chase's committee of directors, is leaving to articulation the U.S.'s largest bank. He volition tally JPMorgan's caller $10 cardinal Strategic Investment Group, which volition put successful companies to "enhance their growth, spur innovation and accelerate manufacturing, chiefly successful the United States." Over time, JPMorgan plans to perpetrate a whopping $1.5 trillion to bolster economical growth.