After the scandal with Wells Fargo, and the appointment of a new director at a popular competitor, there has been a lot of speculation as to how both Warren Buffett and his company Berkshire Hathaway will handle things.
The company JPMorgan Chase, a multinational banking company headquartered in New York City, recently named a new board member. And, it happens to be one of Berkshire’s investment officers: Todd A. Combs. Before joining the Berkshire team as an investor, Combs worked at Castle Point Capital and his main focus was financial services. At that time, he had more than $11 million invested in JPMorgan.
This appointment is a little bit strange to hear, as typically Buffett encourages his investors to accept seats on boards that Berkshire invests in. Berkshire, however, doesn’t have any stakes in JPMorgan and now people are wondering why. The conglomerate has stakes in plenty of competitors; 16% in American Express, 6% in U.S. Bancorp, and 10% in Wells Fargo.
It was previously revealed that Buffett owns his own personal shares of JPMorgan, and that he admired CEO Jamie Dimon and looked forward to his annual letter. Even Dimon is excited to have Combs; “He is an extraordinary leader, investor, and thinker, with a deep understanding of finance,” he commmented.
Still though, recent filings show no sign of JPMorgan being on Berkshire’s radar— perhaps Combs joining the board will change that. Berkshire will now have a little insight into some of the worlds top banking activities, and I don’t think it was to further Combs understanding of finances.