Berkshire Hathaway’s Latest Sale at DaVita Signals a Strategic Review
On January 29, 2026, Berkshire Hathaway Inc. sold 1,658,480 shares of DaVita Inc. at $120.56 each, reducing its stake from 30.1 million to 30.1 million shares after the transaction. The sale came at a price only marginally above the closing price of $109.34, and it follows a string of sell‑side filings that began in May 2025. The current transaction, though modest in dollar terms relative to Berkshire’s holdings, is noteworthy because it coincides with a period of heightened social media buzz (≈ 837 %) and a positive sentiment score of +79, suggesting that market participants are paying close attention to Berkshire’s moves.
Implications for Investors and DaVita’s Outlook
Berkshire’s gradual divestment may indicate a reassessment of the dialysis company’s valuation or risk profile. The company’s P/E of 11.04 is comfortably below the health‑care sector average, yet the stock’s 52‑week low of $101 and a yearly decline of 37 % raise concerns about long‑term growth prospects. The impending quarterly report on February 2, 2026, could either reaffirm confidence with improved earnings or deepen the sell‑off if guidance falls short. Investors should watch for any correlation between Berkshire’s sale volume and subsequent price movements; a sustained decline could erode confidence, while a rebound might reinforce a bullish narrative.
Berkshire Hathaway’s Historical Insider Activity: A Pattern of Opportunistic Selling
Berkshire’s transaction history with DaVita shows a clear pattern: a series of incremental sell‑offs from May through October 2025, with the largest sale of 1,145,938 shares on May 12, 2025, at $147.11. Subsequent sales were smaller, often in the 300,000‑share range, and executed at prices ranging from $138 to $141. This disciplined, ladder‑like divestiture suggests a deliberate strategy to reduce exposure without triggering a sharp price impact. Berkshire’s approach mirrors its broader portfolio management philosophy—selling when valuations become attractive relative to long‑term fundamentals, while maintaining a diversified position across sectors.
Strategic Takeaways for the Market
- Valuation Check‑In – Berkshire’s exits may be a signal to the market that the current price does not fully reflect DaVita’s intrinsic value, especially given the company’s robust cash flow from dialysis operations.
- Regulatory Headwinds – The Department of Veterans Affairs review and potential remedial oversight could introduce short‑term earnings volatility, which Berkshire might have deemed a risk worthy of reduced exposure.
- Investor Sentiment – The high buzz and positive sentiment surrounding the sale could either amplify a narrative of confidence in the company’s recovery or amplify fears of over‑valuation if the price fails to rebound.
Conclusion
Berkshire Hathaway’s recent sale of DaVita shares is more than a routine portfolio adjustment; it is a signal that even a long‑standing institutional investor is actively re‑balancing its holdings in response to evolving fundamentals and regulatory scrutiny. For shareholders, this move underscores the importance of staying attuned to institutional activity, especially when it comes from a player as influential as Berkshire Hathaway. As DaVita prepares to report its next quarter, the market will be watching closely to see whether the company can translate its operational strengths into sustained shareholder value, thereby either vindicating or challenging the narrative set by this latest insider dealing.
| Date | Owner | Transaction Type | Shares | Price per Share | Security |
|---|---|---|---|---|---|
| 2026-01-29 | BERKSHIRE HATHAWAY INC () | Sell | 1,658,480.00 | 120.56 | Common Stock |
