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Buffett’s Berkshire Hathaway Raises Stake in DaVita to Almost 11%

October 12, 2012 | About:
Holly LaFon

Holly LaFon

277 followers
Warren Buffett added 0.71% to his holding of DaVita Inc. (DVA) at the average price of $107.82 on 10/09/2012, as reported by GuruFocus Real Time Picks. After the purchase, he owns 9,650,349 shares, of 10.8% of the company. He just increased his holding of DaVita by 3.04% on Sept. 28. DaVita is currently trading at historic highs.

It is speculated that one of Berkshire Hathaway (BRK.A)(BRK.B)’s new managers, Ted Weschler or Todd Combs, purchased this stock, as Buffett has publicly stated that they were responsible for the smaller positions added to the portfolio around that time. Weschler owned 3.3% of DaVita through his hedge fund prior to leaving it to join Berkshire.

Berkshire initiated the DaVita position in the fourth quarter of 2011, buying 2.7 million shares at an average price of $71, and more than tripled the holding in the first and second quarters of 2012.

Other Guru investors who have large holdings of DaVita include Steve Mandel and Andreas Halvorsen, who each own less than 4% of the company.

DaVita Inc. is one of the largest providers of high-quality dialysis and related services for patients suffering from chronic kidney failure, also known as end stage renal disease.

DaVita Inc. has a market cap of $10.25 billion; its shares were traded at around $110.37 with a P/E ratio of 18.1 and P/S ratio of 1.5. DaVita Inc. had an annual average earnings growth of 17.8% over the past 10 years. GuruFocus rated DaVita Inc. the business predictability rank of 3.5-star.

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Rating: 2.9/5 (11 votes)

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