Tuesday, October 2, 2012

Buffett Bets on the Boomers: End Stage Renal Disease (BRK.B; DVA)

Around ten years ago a sharp young analyst gave me his five-minute kidneys and dialysis pitch. It made quite an impression on me, I remember it to this day. Unfortunately for him and his firm we were just coming off the Dotbomb crash and everything looked really cheap so I filed the idea under "stuff I'll get to".
Davita is up seven-fold since that day, $103.44 at the close. Fresenius, the largest in the industry is up ten-bagger in ten years, no lost decade there.

From Market Folly:
Warren Buffett's Berkshire Buys More DaVita (DVA)
In Forms 3 and 4 filed with the SEC today, Warren Buffett's Berkshire Hathaway has disclosed an increased position in DaVita (DVA).

Per the filing, Berkshire now owns over a $1 billion stake with 10,197,569 shares (or over 10% of the company).  The filings disclose Berkshire purchased 282,403 shares at weighted average prices ranging from $100.96 to $103.7272 between September 26th and 28th.

In the most recent issue of our Hedge Fund Wisdom newsletter, we highlighted how Berkshire had boosted its stake in DVA by 55% during the second quarter and noted that it is portfolio activity most likely attributed to new portfolio manager Ted Weschler.  DVA was one of Weschler's big holdings at his previous hedge fund....MORE