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

By Holly LaFon,

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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.

GuruFocus Real Time Picks alerts you for the stock purchases and sales that Gurus have made within the last two days. Follow your favorite Gurus closely with GuruFocus' Premium Membership! If you are not a Premium Member, we invite you for a 7-Day Free Trial.About GuruFocus: GuruFocus.com tracks the stocks picks and portfolio holdings of the world's best investors. This value investing site offers stock screeners and valuation tools. And publishes daily articles tracking the latest moves of the world's best investors. GuruFocus also provides promising stock ideas in 3 monthly newsletters sent to Premium Members .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing
Referenced Stocks: DVA

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