Ted Weschler
Investment Manager, Berkshire Hathaway
One of the two investment managers hired to eventually help manage Berkshire's equity portfolio.
Biography
Ted Weschler joined Berkshire Hathaway as an investment manager in 2012, alongside Todd Combs, to help manage Berkshire's growing equity portfolio and eventually take over the investment function from Buffett.
Weschler came to Buffett's attention after winning two consecutive charity auction lunches — famously bidding over $5 million each time for the opportunity to spend a meal with Buffett. Before Berkshire, he ran Peninsula Capital Advisors, a highly successful investment partnership in Charlottesville, Virginia, which he voluntarily closed to join Berkshire.
Buffett has praised both Weschler and Combs as people who will be "better investors than I am" in some respects — particularly in evaluating technology businesses and other industries that evolved after Buffett's formative investing decades. Their combined portfolio has grown from a few billion dollars to over $30 billion.
Key Stories
The $5 Million Lunch — Weschler bid more than $5 million at charity auction twice to have lunch with Buffett. After the second lunch, Buffett offered him a job. This unusual path to Berkshire became one of the more memorable stories in Wall Street lore — a reflection of both Weschler's conviction and Buffett's willingness to find talent in unexpected places.
Closing Peninsula — When Buffett offered Weschler the position, Weschler shut down his highly successful hedge fund — returning all capital to investors — to join Berkshire. This sacrifice of substantial personal income to work on salary at Berkshire said something about his priorities and his commitment to the long-term stewardship of Berkshire's capital.
Growing Independence — Initially managing relatively small portfolios to demonstrate judgment, both Weschler and Combs have been given growing responsibility. Some of Berkshire's more recent technology investments — including in Apple — reflect their analytical work. They represent Berkshire's investment future.
Impact on Berkshire
Weschler (and Combs together) represent Berkshire's succession plan for the investment function — one of the most critical and difficult-to-replace aspects of Buffett's role.
Portfolio Growth: Their combined portfolio has grown substantially, and certain positions now attributed to them — particularly in technology — have generated outstanding returns.
Expanded Role: Beyond pure investing, both Weschler and Combs have taken on broader operational responsibilities, serving on corporate boards and running businesses (Combs as GEICO CEO). This versatility reflects Buffett's hope that his successors will be more than portfolio managers.
Continuity of Philosophy: Both have demonstrated commitment to the same principles Buffett lives by: long holding periods, owner-oriented thinking, concentration in high-conviction ideas, and patience. The philosophical inheritance appears intact.
Key Passages from Buffett's Letters
Todd Combs built a $1.75 billion portfolio (at cost) last year, and Ted Weschler will soon create one of similar size. Each of them receives 80% of his performance compensation from his own results and 20% from his partner’s. When our quarterly filings report relatively small holdings, these are not likely to be buys I made (though the media often overlook that point) but rather holdings denoting purchases by Todd or Ted. One additional point about these two new arrivals. Bo
GEICO.com. When I count my blessings, I count GEICO twice. Š Todd Combs and Ted Weschler, our new investment managers, have proved to be smart, models of integrity, helpful to Berkshire in many ways beyond portfolio management, and a perfect cultural fit. We hit the jackpot with these two. In 2012 each outperformed the S&P 500 by double-digit margins. They left me in the dust as well. Consequently, we have increased the funds managed by each to almost $5 billion (some of thi
*S&P 500, both Todd Combs and Ted Weschler handily did so. Each now runs a portfolio exceeding $7 billion. They’ve earned it. I must again confess that their investments outperformed mine. (Charlie says I should add “by a lot.”) If such humiliating comparisons continue, I’ll have no choice but to cease talking about them. Todd and Ted have also created significant value for you in several matters unrelated to their portfolio activities. Their contributions are just beginning: *
*I therefore think it’s worthwhile for Todd Combs and Ted Weschler, our two investment managers, to each have oversight of at least one of our businesses. A sensible opportunity for them to do so opened up a few months ago when we agreed to purchase two companies that, though smaller than we would normally acquire, have excellent economic characteristics. Combined, the two earn $100 million annually on about $125 million of net tangible assets. I’ve asked Todd and Ted to each *
Mark. Though Todd and Ted Weschler are primarily investment managers – they each handle about $9 billion for us – both of them cheerfully and ably add major value to Berkshire in other ways as well. Hiring these two was one of my best moves. ‹ With the PCC acquisition, Berkshire will own 101⁄4 companies that would populate the Fortune 500 if they were stand-alone businesses. (Our 27% holding of Kraft Heinz is the 1⁄4.) That leaves just under 98% of America’s business giants t