Warren Buffett buys more of DaVita on the drop
The action comes after the U.S. Medicare system proposed cutting payments for dialysis patients by a larger-than-expected 9.4% next year.
I guess Warren Buffett’s Berkshire Hathaway (BRK.A) is a bigger short-term risk-taker than I am.
Buffett’s company increased its stake in DaVita Healthcare Partners (DVA) by $73.4 million after the stock dropped by almost 6% on July 2.
That drop came after the U.S. Medicare System proposed cutting its payments for dialysis services by 9.4% in 2014. (For more on the proposal, the drop, and DaVita and its major competitor in the sector, Fresenius, see my post from July 3. Berkshire Hathaway now owns 15.6 million shares.)
In that July 3 post on DaVita I had recommended waiting to buy -- because I felt that Wall Street analysts would be busy cutting their earnings estimates on the news until the company reported earnings n August 11. The stock might show further weakness then, if the company cut guidance for the rest of 2013.
DaVita is a member of my Jubak’s Picks portfolio. The shares closed up 2.03% Monday.
Full disclosure: I don’t own shares of any of the companies mentioned in this post in my personal portfolio. When in 2010 I started the mutual fund I manage, Jubak Global Equity Fund, I liquidated all my individual stock holdings and put the money into the fund. The fund did own shares of DaVita HealthCare Partners as of the end of March. For a full list of the stocks in the fund as of the end of March see the fund’s portfolio.
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i wouldn't be surprised if buffett doesn't get preferred presentations and inside information when reviewing companies.
all he needs to do is call up the company and inquire as to how they are doing. the management would fall all over themselves to answer his questions. then "loose lips" takes over and he gets inside scoop - good or bad - on his prospects.
Steve....You are absolutely correct.
Warren gets more then just inside info..
They make deals that we can only dream about..
And many/most times, there are "bumps" on the stock price if BERK takes a large position or adds.
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The solid report comes a month after the retailer closed all of its Canadian operations.
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