Succession at Berkshire Hathaway: Ted Wechsler to Helm $300 Billion Public Stock Portfolio Amid Warren Buffett's Transition

The End of the Buffett Era and a New Leadership Structure

The year 2025 marked a pivotal transition for one of the world’s most influential investment firms. Warren Buffett officially stepped down as Chief Executive Officer of Berkshire Hathaway as of January 1, 2026, concluding a reign that lasted decades. This historic shift represents far more than a typical corporate succession—it’s the passing of the torch for a conglomerate that has reshaped American investing.

Greg Abel has assumed the CEO responsibilities, bringing his background from Berkshire’s operating division, MidAmerican Energy (acquired by the conglomerate in 1999). His appointment signals that Berkshire’s operational businesses—spanning insurance, utilities, retail, and industrial sectors—will remain his primary focus. This structural decision creates an important question: who will oversee Berkshire’s substantial public market investments?

From Portfolio Co-Managers to Single Leadership

When Warren hired both Ted Wechsler and Todd Combs in the 2010s to manage portions of Berkshire’s equity portfolio, it was widely anticipated that succession planning for investment duties would involve one or both of these seasoned professionals. However, recent developments have altered that trajectory significantly.

Todd Combs, who joined Berkshire in 2010 to manage part of the equity portfolio, has announced his departure to lead JPMorgan Chase’s newly formed Strategic Investment Group. This new role places Combs at the helm of the bank’s direct equity investments across defense, aerospace, healthcare, and energy sectors—industries deemed critical to national security.

With Combs’s exit, Ted Wechsler emerges as the natural choice to become the sole steward of Berkshire’s $300 billion public equity portfolio. This consolidation of responsibility marks a significant moment for the firm’s investment direction.

Massive Capital Reserves: Cash and Opportunity

While the current public equity portfolio stands at approximately $300 billion, Wechsler’s scope of influence extends considerably further. As of the third quarter, Berkshire maintained roughly $377.4 billion in cash and short-term Treasury holdings—a figure that exceeds the total value of common stock positions. This dual-asset concentration represents unprecedented flexibility for strategic deployment.

Warren Buffett’s recent strategy has involved trimming several mega-positions as markets have appreciated. Apple, once representing approximately $200 billion in holdings, has been systematically reduced by 74% since the third quarter of 2023. Today, despite this downsizing, Apple still comprises 22.3% of Berkshire’s overall portfolio and remains the largest public equity holding at around $60 billion in value.

The portfolio’s composition reflects Buffett’s characteristic concentration philosophy. The five largest positions—Apple, American Express, Bank of America, Coca-Cola, and Chevron—account for 70% of the equity portfolio. This concentrated structure provides Wechsler with both the benefits of conviction-based investing and the challenge of managing significant single-name risk.

Ted Wechsler’s Investment Track Record and Philosophy

Investors can anticipate that Wechsler will steward Berkshire’s equity portfolio according to the same value-investing principles that defined Warren’s tenure. This philosophical alignment was precisely the rationale behind hiring him initially.

At his previous position managing Peninsula Capital hedge fund, Wechsler distinguished himself through a contrarian approach, identifying undervalued companies before broader market recognition. His notable successes included Cogent Communications, W.R. Grace & Co., Roto-Rooter, and Wilsons The Leather Experts—many of which were off-the-radar positions that later flourished.

His transition to Berkshire brought several positions with him. DaVita Healthcare, a dialysis company acquired in late 2011, has nearly tripled in value over 14 years, demonstrating patient capital at work. While Wechsler personally purchased Dillard’s retail stock in 2020 during pandemic volatility, the position generated approximately five times his initial investment within a single year—a return that exemplifies his ability to garner outsized gains from contrarian timing.

Sirius XM represents a more challenging position within the portfolio. Though the holding (originally acquired through the Liberty Sirius XM tracking stock in 2016) has struggled, Berkshire reinforced its commitment by adding to the position in the most recent quarterly period, signaling continued conviction in the company’s trajectory.

The Strategic Advantage: Dry Powder and Market Positioning

With $377.4 billion in cash and Treasury instruments, Wechsler inherits a position of extraordinary strategic optionality. This concentration of readily deployable capital enables Berkshire to capitalize on market dislocations, distressed opportunities, or attractive valuations that may emerge in coming years. The ability to move decisively during periods of market stress has historically been one of Berkshire’s competitive advantages.

Looking Forward: Warren’s Legacy Continues

While Wechsler will face the formidable challenge of matching Warren Buffett’s investment record—a nearly impossible standard given the massive capital sums requiring deployment—shareholders can take comfort in the philosophical continuity. The transition preserves Berkshire’s value-investing DNA while enabling the organization to evolve with new leadership.

The conglomerate’s fortress-like balance sheet, combined with Wechsler’s proven investment acumen, positions Berkshire favorably for whatever opportunities and challenges the market may present. Though an era has concluded, the institutional principles that built Berkshire remain intact.