Seeking Alpha

Berkshire ups stake in DaVita

  • Berkshire Hathaway (BRK.A) has bought another 1.13M shares in DaVita Healthcare (DVA) to take its total holding in the kidney dialysis company to 37.62M shares, or 17.7%.
  • The investment is being led by Berkshire fund manager Ted Weschler rather than Warren Buffett.
  • Last May, Berkshire agreed not to raise its stake above 25%, and not to push for board seats or launch a proxy fight.
  • DaVita shares are +2.2% to $67.50.
Comments (7)
  • Kimer62
    , contributor
    Comments (245) | Send Message
     
    In this weeks Barron's they showed six insiders selling a pretty good chunk? something to watch, but this makes me feel better!
    27 Feb 2014, 08:40 AM Reply Like
  • Michael Bryant
    , contributor
    Comments (5755) | Send Message
     
    (BRK.B) is buying (DVA) low. The insider sellings brought the stock down, so now it is low. Question is who are those insiders.
    27 Feb 2014, 08:46 AM Reply Like
  • PeteCal
    , contributor
    Comments (90) | Send Message
     
    It is about time Buffet got out of this company.

     

    I have been into BRK since 1992.
    Lots of lean years while he appeared on the talk circuit not the stock circuit.
    27 Feb 2014, 09:34 AM Reply Like
  • sonetirot
    , contributor
    Comments (62) | Send Message
     
    Can you imagine Apple stock drop if Steve Jobs still CEO and drop dead?
    Good transition for Apples. If Warren happens to drop dead while CEO. It is probably good time to add more since he is basically figure head now.
    BTW: I am long BRK.B
    27 Feb 2014, 01:55 PM Reply Like
  • soccerref
    , contributor
    Comments (25) | Send Message
     
    Was last year a lean year? If so, maybe penny stocks are your thing.
    Based on your 48 comments, you are not very technical. "What is sulfur used for?" Ever hear of sulfuric acid? Sulfate drugs? Vulcanization of rubber (vehicular tires), gunpowder. The list is long.
    I like having a "figurehead" who values integrity and honesty. Yes, WB is a figurehead but that's what a chairman on the fifth largest company by asset is supposed to be.
    27 Feb 2014, 08:15 PM Reply Like
  • flashvin
    , contributor
    Comment (1) | Send Message
     
    Not sure if this is relevant . Last time Berk. took +20% was Burlington RR. That turned out to be just an okay return for coatailers. Although if one took Berk stock on the takeout one has done well. Would current arrangement with DVA prevent an outright buyout?
    28 Feb 2014, 09:31 AM Reply Like
  • TRHanson
    , contributor
    Comments (172) | Send Message
     
    I'm happy that I'm not a coattailer on this one. I bought DVA 24.5% ago. They've been making good moves and it's not like kidney disease/failure is going to drop in the US.

     

    I think the comparison to Burlington is probably not a fair one. Growth prospects of DVA are very much higher than an established rail.
    28 Feb 2014, 09:54 AM Reply Like
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