In a significant development for the world of investing, Ted Weschler is poised to take the helm as the top stock picker at Warren Buffett's Berkshire Hathaway. This comes after his colleague, Todd Combs, departed for a role at JPMorgan Chase in December. Weschler's ascension places him in a pivotal position to manage one of the world's largest and most-watched equity portfolios.
From Wharton to Omaha: The Making of a Value Investor
Ted Weschler's investment philosophy was profoundly shaped early on. As an undergraduate at the University of Pennsylvania's Wharton School in 1979, a friend introduced him to the writings of Warren Buffett. "Read anything he writes," the friend advised. Weschler later recalled in a 2022 interview that Buffett's clarity made him a lifelong hero. This value-oriented approach would define his career.
His personal investment success is the stuff of legend. Weschler remarkably transformed a $70,000 Individual Retirement Account (IRA) in the late 1980s into a staggering $221 million by 2018, as highlighted in a 2021 report. Before joining Berkshire in 2012, he co-managed Peninsula Capital, a $2 billion investment fund.
The Path to Berkshire and a Portfolio in Transition
Weschler's entry into the Berkshire fold is a unique story. He secured face time with Buffett by winning charity auctions for lunches with the CEO, paying over $2.6 million in 2010 and 2011. After a 2011 steak dinner in Omaha, an impressed Buffett offered him a job as an investment manager.
Since then, Weschler and Combs have each run roughly 5% of Berkshire's colossal $300 billion equity portfolio. With Combs's exit, Weschler is now the sole remaining portfolio manager from the duo, positioning him for a vastly expanded role. While Berkshire hasn't officially confirmed his precise duties for 2026—when Greg Abel takes over as CEO—the company's original hiring statement indicated that after Buffett, "Todd and Ted" would be responsible for the entire portfolio.
Weschler's signature investments are evident in Berkshire's holdings. He personally owns over $200 million in DaVita, a kidney dialysis provider, and a $15 million stake in Sirius XM Holdings. Correspondingly, Berkshire holds over $4 billion in DaVita and $3 billion in Sirius XM, investments largely attributed to him.
Challenges and the Future of Berkshire's Billions
The road ahead presents challenges. Buffett disclosed in 2019 that both Weschler and Combs had slightly trailed the S&P 500 since joining Berkshire. Some of Weschler's key holdings have struggled recently. DaVita's stock has been flat over five years, while Sirius XM has plunged over 60%, trading at half its price from a decade ago due to subscriber concerns.
Berkshire's portfolio is dominated by mega-cap stocks like Apple, Bank of America, and Coca-Cola, but many smaller positions were likely accumulated by Weschler and Combs. A critical question is how the portfolio will be managed alongside Greg Abel, especially with Berkshire sitting on a massive $350 billion cash pile. Capital allocation decisions will be crucial.
There is speculation that Berkshire might make minimal changes, following the example of Daily Journal Corp. after Charlie Munger's death. More clarity is expected in the coming weeks, potentially in Abel's first shareholder letter around March 1. For now, Ted Weschler, the quiet investor working from Charlottesville, Virginia, stands on the brink of steering the investment ship of the world's most famous conglomerate.
