Warren Buffett’s Berkshire Hathaway Purchases More Stakes In DaVita

Warren Buffett’s Berkshire Hathaway Purchases More Stakes In DaVita
By Mark Hirschey (Work of Mark Hirschey) [CC BY-SA 2.0], via Wikimedia Commons

Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B), the company controlled by billionaire investor Warren Buffett, purchased more stakes in Davita Inc. (NYSE:DVA), a company engaged in providing dialysis treatment for kidney patients.

Warren Buffett’s Berkshire Hathaway Purchases More Stakes In DaVita

Based on the company’s regulatory filing with the Securities and Exchange Commission, Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B) bought a stake of nearly 11 percent, in shares of Davita, worth approximately $29 million. The company bought the stock during the 3 day period of September 26 to September 28, with a price range from $100.42 to $103.76 per share.

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Berkshire Hathaway Inc. (NYSE:BRK.A) (NYSE:BRK.B)’s total stakes in DaVita are now worth approximately $1.1 billion. The company increased its stake in the Denver-based dialysis company over the past year, and the stock value rose by 65%. The company disclosed its latest stock acquisition, because it is more than 10 percent, as required by government regulations.

Based on the regulatory filing of DaVita Inc. (NYSE:DVA) this year, 89 percent of its patients are covered under government-based programs. Dialysis is used to treat people with kidney failure. The treatment removes toxins and salt from the blood.

Last August, Berkshire Hathaway reported that its U.S. Equity portfolio was worth $74.3 billion. Its largest holdings are The Coca-Cola Company (NYSE:KO), Wells Fargo & Company (NYSE:WFC), American Express Company (NYSE:AXP), and International Business Machines Corp. (NYSE:IBM). Berkshire Hathaway owns a 21 percent stake in Coca Cola, an 18 percent stake in Wells Fargo, and an 11 percent stake  in American Express. The company’s holds a 17.5 percent interest in IBM.

Berkshire Hathaway’s stock picks generally move the market. Buffet reiterated that not all the moves in the investment portfolio could be attributed to him. Todd Combs and Ted Weschler, the new portfolio managers of Berkshire Hathaway made some of the smaller positions in the company.

Buffet hired Combs and Weshler as investment managers in 2011. Berkshire Hathaway’s most recent billion-dollar investment was Direct TV, which was made by either Combs or Weschler.

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