Gustavo Ballvé on September 12th, 2011
Corporate Strategy, Food for thought, Home, Investment Themes, Portfolio Management

We had another post lined up, but this is pretty interesting: Buffett has hired another manager to join Todd Combs (for whom Buffett had kind words in this release). The new-hire’s name is Ted Weschler, hailing from Peninsula Capital Advisors, apparently a US$ 2bi highly-concentrated equities manager. The point here is not (yet) to try to distill Mr. Weschler’s experience, holdings over the last year and – much more importantly – investment processes. We don’t know much about him yet, although this story by Buffett’s friend Carol Loomis certainly helps in establishing “motivation”. The point is the interesting dynamic this creates – Mr. Buffett will now have two managers whose performance he will review, and who can learn from him and – we hope – collaborate with one another. That collaboration will be a vital aspect: whether there’s true “team spirit” or unchecked competition – declared or not – may determine whether both, or even of them, stay on and prosper. Not surprisingly, the press release leaves open the possibility of hiring yet another manager. That’s consistent with previous communications in this subject.

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