Corning Incorporated (GLW): Is This Buffett’s Next Acquisition?

DaVita HealthCare Partners Inc (NYSE:DVA) is a sure bet on a sick future. This is another potential Heinz-like stock in the making. The kidney dialysis market is growing at an almost certain 4% a year, as more and more of the U.S. population develops diabetes.

DaVita’s earnings growth rate over the last five years is an annual 15.1%, and the consensus annual growth rate for the next five years is 12.7%. The stock doesn’t pay a dividend, but sports a healthy quarterly revenue growth of 33% and gross operating margin of 17%. Buffett has been accumulating shares of DaVita at a steady pace in recent quarters. Perhaps this is a prelude for an imminent purchase of the company as a whole.

Whether Berkshire Hathaway purchases any of the above mentioned companies is purely speculation. But with the financial stability, brand power and shareholder friendliness that these companies have been demonstrating over the years, perhaps you, and not just Berkshire should add them to your stock portfolio.

The article Is This Buffett’s Next Acquisition? originally appeared on and is written by Shmulik Karpf.

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