Warren Buffett sells $168M in DaVita Inc. shares before lawsuit

From Yahoo Finance: 2025-05-17 21:39:00

Warren Buffett sold $168 million worth of DaVita Inc. (DVA) shares just before a union health benefits fund sued top dialysis providers, including DVA, for inflating treatment costs. Despite the sell-off, DVA remains a top pick in Berkshire Hathaway’s portfolio with over $5 billion in holdings.

DaVita Inc. is a major kidney dialysis provider in the US with 2,657 centers and operates 509 centers in 13 other countries. The stock has seen a 4% surge in the past year. However, some believe that other AI stocks offer greater potential for higher returns with limited downside risk.

A class action lawsuit accuses DaVita and Fresenius Medical Care of colluding to raise prices above market levels. DaVita has denied the allegations and plans to vigorously defend itself. The sell-off of DVA shares before the lawsuit shows Warren Buffett’s foresight in business, a key factor in Berkshire Hathaway’s success.

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