Warren Buffett has finally come out with an announcement about the appointment of Todd Combs as an investment officer at Berkshire Hathaway. To date Buffett has remained silent on the matter. Charlie Munger has also not made any public comments. The official announcement about Todd Combs came in the form of a Berkshire Hathaway press release earlier this week.
Today Buffett came out with comments that were published in the Wall Street Journal regarding the new appointment.
According to the article http://online.wsj.com/article/SB20001424052702303341904575576373008860754.html#printMode:
The two soon met for a lunch that extended well into the afternoon at the California Club in downtown Los Angeles. Mr. Munger later phoned Mr. Buffett and told him, "this is a guy I am sure you are going to like," Mr. Munger recalls.
Mr. Buffett says he and Mr. Munger were sold on Mr. Combs not only because of his ability and intelligence but also because they were convinced he would fit in to Berkshire's no-fuss culture.
Mr. Combs, a Sarasota, Fla., native who is still partial to his alma mater Florida State Seminoles football team, struck a lasting impression, Mr. Buffett says. He and Mr. Munger arrived at the decision based on the same kind of "gut check" they make with acquisitions of companies.
"He is a 100% fit for our culture," Mr. Buffett says. "I can define the culture while I am here, but we want a culture that is so embedded that it doesn't get tested when the founder of it isn't around. Todd is perfect in that respect."
The article reveals that Combs applied for the job in 2007. This is particularly interesting. Even though Combs only started his firm in 2005. It greatly surprises me that Buffett and Munger considered someone with a two year track record at that point. What made his application stand out, out of the hundreds of applications received? It seems to be just a gut feeling that Combs would fit in well with Berkshire Hathaway's culture. However, is there more that Buffett knows about Combs which has not been made public yet?
I assume there is more information out there that Buffett has not revealed yet to the media. It would also be interesting to hear Buffett discuss the whole Li Lu flip flop. Buffett to date has never mentioned a word about Li Lu. Charlie Munger was the one to make the announcement that Li Lu would get the job as an investment officer (although Li Lu has now declined that role). I hope Buffett is more open about why Combs.
There are still many unanswered questions. I will be watching the news to see if Buffett or Munger answer some of these questions.
The full article is here:
http://online.wsj.com/article/SB20001424052702303341904575576373008860754.html#printMode
H/T to David Lau of http://dahhuilaudavid.blogspot.com/ for the find
Disclosure: None
http://www.valuewalk.com/
Today Buffett came out with comments that were published in the Wall Street Journal regarding the new appointment.
According to the article http://online.wsj.com/article/SB20001424052702303341904575576373008860754.html#printMode:
The two soon met for a lunch that extended well into the afternoon at the California Club in downtown Los Angeles. Mr. Munger later phoned Mr. Buffett and told him, "this is a guy I am sure you are going to like," Mr. Munger recalls.
Mr. Buffett says he and Mr. Munger were sold on Mr. Combs not only because of his ability and intelligence but also because they were convinced he would fit in to Berkshire's no-fuss culture.
Mr. Combs, a Sarasota, Fla., native who is still partial to his alma mater Florida State Seminoles football team, struck a lasting impression, Mr. Buffett says. He and Mr. Munger arrived at the decision based on the same kind of "gut check" they make with acquisitions of companies.
"He is a 100% fit for our culture," Mr. Buffett says. "I can define the culture while I am here, but we want a culture that is so embedded that it doesn't get tested when the founder of it isn't around. Todd is perfect in that respect."
The article reveals that Combs applied for the job in 2007. This is particularly interesting. Even though Combs only started his firm in 2005. It greatly surprises me that Buffett and Munger considered someone with a two year track record at that point. What made his application stand out, out of the hundreds of applications received? It seems to be just a gut feeling that Combs would fit in well with Berkshire Hathaway's culture. However, is there more that Buffett knows about Combs which has not been made public yet?
I assume there is more information out there that Buffett has not revealed yet to the media. It would also be interesting to hear Buffett discuss the whole Li Lu flip flop. Buffett to date has never mentioned a word about Li Lu. Charlie Munger was the one to make the announcement that Li Lu would get the job as an investment officer (although Li Lu has now declined that role). I hope Buffett is more open about why Combs.
There are still many unanswered questions. I will be watching the news to see if Buffett or Munger answer some of these questions.
The full article is here:
http://online.wsj.com/article/SB20001424052702303341904575576373008860754.html#printMode
H/T to David Lau of http://dahhuilaudavid.blogspot.com/ for the find
Disclosure: None
http://www.valuewalk.com/
