Warren Buffett Already Cleaning Up in DaVita Investment (BRK.A, DVA)

DaVita Inc. (NYSE DVA) is turning out to pay off already for Team Buffett over at Berkshire Hathaway Inc. (NYSE: BRK.A).  We do not have a real tally of what Buffett’s new portfolio manager paid for the stake, but if we look at the days when volume was elevated in the fourth quarter the prices were in a range of mostly $64.00 to $76.00 and the year-end price for 2011 was $75.81.  In order to be conservative on estimates, we will assign an average price in the upper-half of the range at $73.00 for an implied cost basis.

As of the end of 2012, Buffett’s position in the leading kidney dialysis provider was 2.684 million shares worth $203 million.  Now the company beat its earnings estimates and its shares are up around $85.50.  Shares are up almost 13% year-to-date and are up 17% from that implied ‘guesstimate’ average price of $73.00 per share.

We have not seen trades yet on DaVita, but shares are indicated higher.  If you have followed Buffett for years, you know that Buffett often adds to his investment positions after initiating new positions.  DaVita is working out rather well even if it is not a position large enough to move the needle for Berkshire Hathaway.