Warren Buffett To Start Slow With Combs

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He'll initially only be managing the money in The Oracle's back pocket.

In the board's business sessions, Buffett says, he clarified what role Combs will be playing when he reports for work in January. The backstory here concerns Berkshire's October 25th press release in which Buffett, announcing Combs' hiring, indicated that Combs would be running "a significant portion" of Berkshire's money. That wording, plainly imprecise, led some media commenters to believe that Combs was going to be handling megabillions of Berkshire's huge investment portfolio, which at the end of September was $113 billion in size.

But Buffett told the board that he and Combs had discussed Combs' initially running perhaps $2 billion to $3 billion. Either amount would greatly exceed the $400 million that Combs was running at Castle Point. Amounts of $2 billion to $3 billion, though, would be roughly comparable to the sums managed by Lou Simpson, who has long been in charge of investing the funds of GEICO, a big Berkshire division.

Welcome To Omaha, Todd Combs [Fortune]

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