Berkshire Hathaway Buys More DaVita (DVA) ~ market folly

Monday, July 8, 2013

Berkshire Hathaway Buys More DaVita (DVA)

Warren Buffett's Berkshire Hathaway filed a form 4 with the SEC regarding their position in DaVita (DVA).  Per the filing, Berkshire has disclosed that they purchased 639,200 shares on July 2nd and 3rd at weighted average prices ranging from $112.35 to $116.41.  After all purchases, Berkshire now owns over 15.6 million shares of DVA.

DaVita shares have recently been hit on news that a proposal by the Centers for Medicare and Medicaid Services would decrease payments to dialysis facilities by $970 million in calendar year 2014 (more details here).

Berkshire has been slowly building a large stake in DVA and we've detailed their previous purchases.  This coincided with new portfolio manager Ted Weschler joining the Berkshire team (DVA was a top holding at his previous hedge fund).

Berkshire originally built their position in DaVita between $70-85 it looks like and they've slowly added to the stake each quarter, recently buying at around $110 and now again at the prices outlined above.

Per Google Finance, DaVita is "is a provider of dialysis services in the United States for patients suffering from chronic kidney failure, also known as end stage renal disease (ESRD)."

For more from this manager, we've also highlighted some other recent Berkshire Hathaway portfolio activity.

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