5 Best Value Stocks in Warren Buffett’s Portfolio

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In this article, we discuss the 5 best value stocks in Warren Buffett’s portfolio. If you want our detailed analysis of Buffett’s history, investment philosophy, and hedge fund performance, go directly to 10 Best Value Stocks in Warren Buffett’s Portfolio

5. DaVita Inc. (NYSE:DVA)

Berkshire Hathaway’s Stake Value: $4,196,471,000

Percentage of Berkshire Hathaway’s 13F Portfolio: 1.43%

Number of Hedge Fund Holders: 39

P/E Ratio: 12.37

DaVita Inc. (NYSE:DVA) made it to our list of the best value stocks in Warren Buffett’s portfolio, with the company announcing solid Q3 earnings on October 28, posting an EPS of $2.36, beating estimates by $0.10. Revenue over the period also outperformed estimates by $23.55 million. 

Deutsche Bank analyst Pito Chickering on November 17 lowered the price target on DaVita Inc. (NYSE:DVA) to $150 from $164 and kept a Buy rating on the shares after the capital markets day, stating that the company offers a longer term investment horizon than many investors can be comfortable with. 

DaVita Inc. (NYSE:DVA) is a healthcare company primarily focusing on kidney diseases and dialysis support, operating in nine countries in addition to the United States. Warren Buffett holds a $4.19 billion position in DaVita Inc. (NYSE:DVA) as of September this year, with DaVita Inc. (NYSE:DVA) stock accounting for 1.43% of the billionaire’s total investments. 

At the end of the third quarter, 39 hedge funds tracked by Insider Monkey reported owning stakes worth $4.81 billion in DaVita Inc. (NYSE:DVA). This is compared to the same number of funds holding the DaVita Inc. (NYSE:DVA) stock in the preceding quarter, with a total stake value of approximately $5.13 billion. 

Gates Capital Management increased its stake in DaVita Inc. (NYSE:DVA) by 5% in the third quarter, and is one of the leading stakeholders of the company, with a $174.1 million position. 

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