Berkshire Hathaway Trims DaVita Holdings Following Earnings Slump

Published 16 hours agoDVA

Berkshire Hathaway Trims DaVita Holdings Following Earnings Slump

Berkshire Hathaway, the multinational conglomerate, has been reducing its stake in DaVita, a provider of kidney dialysis services. On February 11, 2025, Berkshire sold 203,091 shares, adjusting its ownership to about 45%, with holdings now at approximately 35.89 million shares valued at $6.4 billion. This sale coincides with a share repurchase agreement obliging DaVita to buy back shares quarterly to maintain Berkshire's position. Reuters reported on these transactions as part of the strategy.

Continuing the trend, between February 14 and 19, Berkshire sold another 750,000 shares, cutting its stake by approximately 2% down to 35.14 million shares worth $5.4 billion. These sales amounted to about $115 million, ultimately reducing Berkshire's ownership to 44%, considering DaVita's total shares outstanding. This strategic divestment aligns with a period of DaVita stock volatility following disappointing earnings guidance.

Berkshire Hathaway's investment in DaVita dates back to the fourth quarter of 2011, managed by Ted Weschler since his 2012 joining as a portfolio manager. The sales are in response to DaVita's announcement on February 13, 2025, forecasting a 2025 earnings outlook that fell short of investor expectations, resulting in an 11% drop in the company's share price the next day.

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