Warren Buffet must be very pleased with DaVita HealthCare Partners Inc (NYSE:DVA)’s performance, which is apparently the only healthcare stock in the portfolio of his holding company, Berkshire Hathaway Inc. (NYSE:BRK.A). TheStreet‘s Jonathan Marino reported on the phenomenal rise of the stock this year.
“[…] DaVita HealthCare Partners Inc (NYSE:DVA) stock is up 18% so far this year, and the company has made solid gains since the financial crises, making itself a big winner in Berkshire Hathaway Inc. (NYSE:BRK.A)’s portfolio. Buffet like DaVita so much that it is the only healthcare stock in his portfolio. He also increased his position in it, according to a recent filing […],” said Marino.
The Oracle of Omaha, which Buffet is called on account of his clairvoyant abilities as far as stock picking is concerned, usually sees an opportunity in companies, which have been written off the cards by rest of the market. The case of DaVita HealthCare Partners Inc (NYSE:DVA) is different though, as Marino explained. It is simpler.
“[…] The theory behind backing DaVita HealthCare Partners Inc (NYSE:DVA) is not complex. It provides increasingly needed dialysis services to a growing population of elderly clients here in the U.S. DaVita is also striking deals to enter new markets from Colorado to Malaysia to support growth. That is good news for Buffet too […],” informed Marino.
The company has a sound business model taking into account that the global population is living much longer than before with the improvement in medicine and hygiene. With old age also come the increased chances of relying on medical treatments such as dialysis, and that is where companies like DaVita HealthCare Partners Inc (NYSE:DVA) come in. The country topping the life expectancy list in the world is Monaco with a life expectancy of 89.68.
DaVita is currently up about 0.43% for the day and is trading at $75.4.
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