(BRK.A), (BRK.B)
Berkshire Hathaway, the renowned investment conglomerate led by Warren Buffett, is often celebrated for its strategic investments in household names like Apple, Bank of America, American Express, and Coca-Cola. However, one lesser-known gem in its portfolio is its nearly 40 percent ownership stake in DaVita, a leading global healthcare company specializing in kidney care.
DaVita operates dialysis centers across the United States and in 10 other countries, solidifying its position as a key player in the healthcare industry. As of December 31, 2023, Berkshire Hathaway held a substantial 36,095,570 shares of DaVita, making it one of the company’s top domestic holdings.
The investment has proven highly lucrative for Berkshire Hathaway, with DaVita’s stock surging over 7 percent on March 5, 2024, reaching an all-time high of $134.65 per share. This remarkable performance has been driven in part by DaVita’s aggressive share buyback program, which has effectively increased Berkshire Hathaway’s stake in the company without requiring additional investment.
DaVita’s impressive financial performance further underscores its importance in Berkshire Hathaway’s investment strategy. With a one-year return of 67.89 percent and a five-year return of 169.57 percent, DaVita stands out as one of Berkshire’s top-performing investments.
In discussions about Berkshire Hathaway’s patient and strategic approach to investing, DaVita should not be overlooked. Its success highlights the value of thorough research and long-term investment strategies in achieving substantial returns in the ever-evolving landscape of the stock market.
© 2024 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell a stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.