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Warren Buffett Purchases More DaVita Shares

October 02, 2012 | About:
Warren Buffett’s Berkshire Hathaway Inc. (BRK.A)(BRK.B) has purchased 282,403 more shares of DaVita Inc. (DVA), at $103.83 per share, recorded on Sept. 28, according to GuruFocus Real Time Picks.

This boosts Berkshire’s total shares to 9,582,403, a 28% increase from the amount reported on June 6, making Buffett more than 10% owner of the company.

DaVita Inc. delivers dialysis services to patients with chronic kidney failure and end-stage renal disease. These services include clinical care, integrated treatment plans, personalized care teams and health management services. DaVita has more than 1,800 outpatient dialysis centers nationwide, and has operated 19 outpatient dialysis centers in four countries outside of the U.S., according to the company’s website.

Aside from Berkshire’s most recent purchase, there have been three additional accounts of DaVita insider activity within the last month, including more than 4,000 shares sold by DVA Director Pamela Arway, more than 15,000 shares sold by DVA Chief Compliance Officer David Shapiro, and more than 4,900 shares sold by DVA Group Vice President Leanne Zumwalt.

Other Gurus who also hold shares of DaVita besides Buffett include Lone Pine Capital’s Steve Mandel, who owns 3.2% of the company, Viking Global Investors LP’s Andreas Halvorsen, who owns 3.34% of the company and Maverick Capital’s Lee Ainslie, who owns 0.73%.

DaVita has a net income of about $2.8 million based upon figures the company reported in its six-months quarterly report ending last June.

With a market cap of $9.8 billion, DaVita has a P/E ratio of 17.3, a P/S ratio of 1.4 and an annual average earnings growth of 18.6% in the last 10 years. DaVita is traded at its highest price in at least three years.

GuruFocus gives DaVita a Business Predictability Rank of 3.5 stars, a financial strength rank of 7 out of 10, and a reflectively positive high profitability rank of 9 out of 10.

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About the author:

Dianne Tordillo
Dianne Tordillo is staff writer for GuruFocus.com. She reports on a variety of financial news, primarily dealing with investor portfolios and stock trades. Her articles also highlight insider trades, as well as the many useful features of GuruFocus.

Visit Dianne Tordillo's Website


Rating: 3.2/5 (13 votes)

Comments

vgm
Vgm - 1 year ago
It's Berkshire, but not Buffett. Weschler and likely Coombs also.

That makes DaVita and DirecTV very large holdings for the new guys, given the total size of their portfolios.
mocheng
Mocheng premium member - 1 year ago
DaVita doesn't seem like a value to me, it's not cheap by Warren's definition, so i don't know if Buffett is behind this purchase.
mscott9
Mscott9 premium member - 1 year ago
How could guru know these additional share were purchased?

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