Warren Buffett's Berkshire Hathaway Trims DaVita Stake by 2% in $116M Share Sale

In a move that has caught the attention of investors, Warren Buffett's Berkshire Hathaway has sold a significant portion of its shares in DaVita, the kidney dialysis services giant. The sale, valued at approximately $116 million, has reduced Berkshire's stake in DaVita by around 2%. This article will delve into the reasons behind this decision, the implications for DaVita's future prospects, and the broader investment landscape.

Berkshire Hathaway's sale of DaVita shares was primarily driven by a share repurchase agreement between the two parties. In April 2024, DaVita and Berkshire Hathaway reached an agreement where DaVita would buy back shares on a quarterly basis to reduce Berkshire's ownership stake to 45%. This agreement was the primary reason for the sale of 203,091 shares on February 11, 2025, which brought Berkshire's stake back down to 45%, worth nearly $6.4 billion (Reuters, 2025).



DaVita's 2025 earnings outlook may have also contributed to Berkshire's decision to sell shares. The company guided for adjusted earnings of $10.20 to $11.30 in 2025, which was below analysts' expectations of $11.38. This could have influenced Berkshire's decision to reduce its stake, as the company's outlook may have been less optimistic than previously anticipated (The Wall Street Journal, 2025).

Despite the sale, Berkshire Hathaway remains DaVita's largest institutional investor, with a 45% stake. This indicates that Berkshire still has confidence in the company's long-term prospects. Warren Buffett, Berkshire's CEO, is known for his "buy and hold" strategy, and the conglomerate's investment in DaVita since 2011 reflects this approach (Reuters, 2025).

The broader healthcare and investment landscape may have played a role in Berkshire's decision. The kidney dialysis services industry, in which DaVita operates, is subject to regulatory and reimbursement pressures. Additionally, the overall investment landscape may have influenced Berkshire's decision to reallocate capital to other opportunities.

In conclusion, Berkshire Hathaway's sale of DaVita shares was primarily driven by a share repurchase agreement, with the company's 2025 outlook potentially contributing to the decision. Despite the sale, Berkshire's long-term investment horizon remains intact, as evidenced by its continued significant stake in DaVita. The broader healthcare and investment landscape may have played a role in the decision, but more specific information is needed to draw concrete conclusions.