Tags: warren buffett | davita | berkshire hathaway | unitedhealth

CNBC: Warren Buffett Scores Quick $230 Million with DaVita Deal

Wednesday, 06 Dec 2017 03:47 PM

Warren Buffett's Berkshire Hathaway scored a one-day paper profit of more than $231 million on the sale of a division of DaVita, the kidney dialysis center operator. Berkshire is the biggest shareholder of DaVita with a 20 percent stake.

UnitedHealth is paying $4.9 billion for DaVita Medical Group, which operates 300 clinics and a handful of outpatient surgical centers in six states.

The unit will be folded into UnitedHealth's Optum group, which includes pharmacy benefits, data analytics, clinics, surgical centers and home care, CNBC reported.

The rest of DaVita will focus on the kidney care business. It says it will use the proceeds of the sale to buy back stock and pursue other investments.

Berkshire began investing in DaVita in 2011. The stock has been a favorite of Berkshire portfolio manager Ted Weschler, who has a personal stake in the medical services company of 2.2 million shares, according to FactSet.

At the end of 2011, DaVita shares traded at about $38, rising to $75 by the end of 2014. But they are down 20 percent since then, closing on Tuesday at $60.93.

DaVita shares jumped more than 10 percent after the deal was announced on Wednesday.

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Warren Buffett's Berkshire Hathaway scored a one-day paper profit of more than $231 million on the sale of a division of DaVita, the kidney dialysis center operator. Berkshire is the biggest shareholder of DaVita with a 20 percent stake.UnitedHealth is paying $4.9 billion...
warren buffett, davita, berkshire hathaway, unitedhealth
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2017-47-06
Wednesday, 06 Dec 2017 03:47 PM
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