Berkshire's Billion-Dollar Secret: The Surprising Healthcare Giant in Its Crosshairs

Berkshire Hathaway's portfolio has attracted significant attention for its large stakes in prominent companies like Apple and American Express. However, Warren Buffett and Greg Abel's largest holding proportionally is actually in DaVita (NYSE: DVA), a niche healthcare business that operates kidney dialysis centers across the United States.

As of July 31, Berkshire owned approximately 28.7 million shares of DaVita, giving it a stake of nearly 45% in the company's equity. This is remarkable considering that Buffett and Abel have been periodically reducing their holding since early 2025, after maintaining a relatively static position from 2020 to 2024.

DaVita has indeed been a successful investment for Berkshire, with its stock price up by over 56% year-to-date. The company's recent earnings report beat analyst estimates, resulting in an increased guidance for adjusted earnings per share (EPS) of $14.10 to $15.20. This predictably profitable and growing business is precisely the kind that Buffett has favored.

The fact that Berkshire's stake in DaVita is larger proportionally than its stakes in Apple or American Express highlights the importance of this investment for the company. Analysts expect DaVita to continue delivering revenue growth and profitability, making it a promising stock to hold onto.