In preparation for his inevitable withdrawal from the world of moneymaking, Warren Buffett is grooming his successors Ted Wechsler and Todd Combs. Latest in a series of moves, the pair will oversee approximately $4 billion each, up from about $2.75 billion from the beginning of the year.
“They have terrific talent,” Buffett said. “I feel very, very, very good about where we are now versus a few years ago in terms of successor investment management.”
Buffett, who is now 81, still personally oversees Berkshire Hathaway’s (NYSE: BRK.A) largest investment assets. The company’s stock portfolio amounts to nearly $89.1 billion.
Weschler, 51, and Combs, 41, have full autonomy to manage their investments, which at present won’t be more than $1 billion apiece.
Buffett is paying Weschler and Combs long-term for managing Berkshire’s performance. In addition to individual salaries of $1 million, they also stand to earn 10 percent of the amount by which their stock portfolios exceed Standard & Poor’s 500 index on a 3-year basis. Part of the pay of each is also interlocked with the other’s, a way to induce collaboration.
Berkshire’s board has already chosen the company’s future CEO for after Buffett exits the scene, though the company refused to release names. Buffett has, however, hinted that his son Howard Buffett would not take on the role.