A rare interview with Ted Weschler, Todd Combs, Warren Buffett & Tracy Britt Cool (2014)

TL;DR

Berkshire Hathaway investment managers Todd Combs and Ted Wechsler, along with Tracy Brick Cool, discuss their paths to Berkshire, their investment processes, and their roles within the company.

Transcript

We have a rare interview with Berkshire Hathaway  investment managers Todd Combs and Ted Wechsler   plus Tracy Brick Cool who is Warren Buffett's  financial assistant all three of them are here   and this is a rare treat because i don't think you  three have ever sat down together for an interview   have you? oh that's for fun. Todd let's talk a  l... Read More

Key Insights

• 🫠 Todd Combs and Ted Wechsler spend a significant amount of time reading and researching potential investments before making decisions.
• 🧑‍🎓 Tracy Brick Cool joined Berkshire Hathaway through her involvement with a student group and later reached out to Buffett directly.
• ❓ Warren Buffett values both intellect and character when evaluating potential investment managers.
• ❓ Combs, Wechsler, and Cool all own shares of Berkshire Hathaway personally.
• ❓ Berkshire Hathaway's culture and autonomy are valued by its investment managers.
• 😨 Combs and Wechsler find value in companies that deliver better quality of care, provide net savings to the healthcare system, and have high returns on capital.
• 🫡 Combs and Wechsler have respected investors in their industry, such as Tom Bancroft and David Tepper.

Questions & Answers

Q: How do Todd Combs and Ted Wechsler identify potential investment opportunities?

Both Combs and Wechsler spend a significant amount of time reading various sources, such as annual reports and regulatory filings. They look for businesses with good quality, net savings to the healthcare system, and high returns on capital.

Q: Do Todd Combs and Ted Wechsler own Berkshire Hathaway shares personally?

Yes, both Combs and Wechsler own shares of Berkshire Hathaway. However, Combs mentioned that he would not have included it in his fund if he were still running one.

Q: How did Tracy Brick Cool become a part of Berkshire Hathaway?

Cool initially met Buffett through a student group and later wrote him a letter asking to spend time with him. Buffett agreed, and she eventually became a part of Berkshire Hathaway.

Q: Are Todd Combs and Ted Wechsler's compensation tied to each other in an 80-20 split?

Yes, Combs and Wechsler's compensation is tied to each other in an 80-20 split. They have a long-term track record of working well together.

Summary & Key Takeaways

• Todd Combs and Ted Wechsler reached out to Warren Buffett individually, with Combs getting a recommendation from Charlie Munger. They both had series of conversations before meeting Buffett.

• Combs and Wechsler moved their families to Omaha after joining Berkshire Hathaway and have found the experience to be wonderful.

• Tracy Brick Cool initially met Buffett through a student group and later sent him a letter asking for the opportunity to spend time with him. Buffett agreed, and she eventually joined Berkshire Hathaway.