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Warren Buffett Becomes Largest Owner of DaVita

Sally Jones

Sally Jones

The Oracle of Omaha and Berkshire Hathaway (BRK.A)(BRK.B) continue to add DaVita Healthcare Partners (DVA) stock to its portfolio, making a seventh purchase since the start of 2013. Buffett’s most recent add on Feb. 27, 2013, brings his current DVA shares to 14,808,959, representing a 1.4% increase since his last purchase on Feb. 22, 2013, and an overall increase of 14.26% to his shares outstanding. The stock price was $120.03, a price change up 3%. This buy means a 33.44% share-number change from the last period. DaVita is now ranked in the eighth position of Buffett’s select portfolio of companies he holds for the long term.

With the release of Berkshire’s annual report, Buffett called his company’s performance “subpar” despite a growth in book value of $24.1 billion. With a clear interest in DaVita, Berkshire sees this expanding health care provider poised for exciting growth that translates to earnings and helps correct Berkshire’s underperformance. For Warren Buffett’s holding history of DVA:

Catering exclusively to kidney patients, DaVita HealthCare Partners Inc. is a provider of dialysis services mostly in the U.S., treating patients with chronic kidney failure. As of Jan. 7, DaVita also acquired nine dialysis centers, located in Portugal and Poland, partnering with competitor Fresenius Medical Care (FMS). These recent acquisitions bring DaVita’s total number of dialysis centers outside the U.S. to 33, along with its 1,912 centers in the U.S. The partnership between Fresenius and DaVita Rx will also help Fresenius comply with the congressional mandate for all oral end-stage renal disease medications to be included in a bundled payment model by 2016.

GuruFocus gives an in-depth analysis of DVA at:

DVA is one of 41 stocks in Berkshire Hathaway’s portfolio, valued at $75.3 billion, with a quarter-over-quarter turnover of 4%. Facing increased competition in the dialysis industry from large and medium-sized providers, DaVita directly competes for acquisition targets as well as for individual patients. DaVita Health Care Partners provides kidney dialysis services to approximately 142,000 patients. It also provides acute inpatient dialysis services in approximately 700 hospitals and related laboratory services. DaVita's dialysis and related lab services business accounts for approximately 93% of its consolidated revenues. Many of the company's outpatient dialysis centers offer services for home dialysis patients. See DVA’s growth rate here:

1362421980855.pngDVA data by

Berkshire portfolio manager Ted Weschler has also owned DVA shares for over 12 years. See Ted Weschler’s holding history of DVA:

Buffett’s recent buy follows other Berkshire adds of Wells Fargo (WFC), DirecTV (DTV) and Liberty Media Corp (LSTZA). For in-depth analysis of Berkshire Hathaway, start here:

Warren Buffett
’s buying history is shown here:

For Warren Buffett’s top buys, top sales and top holdings, take a look:

GuruFocus "Real Time Picks" reports the stock purchases and sales that Gurus have made within the prior two weeks. The report time lag can be as short as two days after the date of the transaction. This feature is for Premium Members only. If you are not a Premium Member, we invite you for a 7-day Free Trial.

About the author:

Sally Jones
Sally Jones writes about Real Time Picks. She says, "I truly enjoy watching the Gurus in realtime and telling their story."

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