Warren Buffett’s conglomerate Berkshire Hathaway has sold another 200,010 shares of DaVita, raising concerns about its stake in the kidney dialysis provider. The sale is the latest move by Berkshire to trim its holding in DaVita, which has quadrupled in value since 2011.
Berkshire remains DaVita’s biggest institutional investor with a 42.3% stake, but its latest sale reduces its share in the company. The conglomerate initially bought 200,010 shares of DaVita between May 22-27 and sold them later.
DaVita has faced rising patient care and operating costs, as well as disruptions from hurricanes and a ransomware attack. This has affected the stock’s performance, which is down about 9% this year after surging 40% in each of the past two years.
Berkshire first acquired DaVita shares in 2011 and at that time, the stake was relatively small. However, under the management of portfolio manager Ted Weschler, who joined Berkshire in 2011, the stake grew significantly due to Weschler’s bullish outlook on DaVita. He believed the company provided “better quality of care,” high return on capital with predictable growth, and a shareholder-friendly management.
DaVita provides kidney dialysis services through at-home dialysis and a network of outpatient clinics across the United States, founded in 1994.
Source: https://www.cnbc.com/2025/06/01/berkshire-has-been-selling-down-a-top-healthcare-holding-heres-why.html