Warren Buffett Sells $168M in DaVita Inc. (DVA) Shares

According to a Form 4 filing with the United States Securities and Exchange Commission, on May 8, Berkshire Hathaway sold 1,145,938 shares of DaVita Inc. (NYSE:DVA), valued at $168.58 million.

The move occurred just a day before a union health benefits fund sued top dialysis services providers in the country, including DaVita Inc. (NYSE:DVA), for allegedly artificially inflating treatment costs for billions of dollars.

The class action lawsuit accused DaVita and Fresenius Medical Care of illegally carving up areas in the US to avoid competition. The plaintiffs added that the two companies colluded in parallel price increases that were higher than those of competitors and not explained by market forces. DaVita has denied the allegation as baseless and vowed to defend itself vigorously against it.

The sell-off just a day before the lawsuit has once again proven Warren Buffett’s business foresight, which has been a cornerstone of Berkshire’s success. Despite the recent trade, DaVita Inc. (NYSE:DVA) remains a top pick from the 94-year-old’s stock portfolio, with holdings of over $5 billion in the company.

DaVita Inc. (NYSE:DVA) is one of the largest kidney dialysis providers in the US with 2,657 centers. The company also operates 509 dialysis centers in 13 other countries. The stock has surged by 4% in the past 12 months.

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