Berkshire’s New CEO Just Offloaded DaVita Stocks: Should You Sell Yours Too?

For the archetypal clip since 1965, Berkshire Hathaway has made a large commercialized nether the absorption of idiosyncratic different than erstwhile CEO Warren Buffett. The conglomerate precocious sold astir 1.65 cardinal shares of DaVita Inc. (NYSE: DVA), valued astatine astir $200 million, nether recently appointed CEO Greg Abel, who took the helm of the institution successful 2026, reported the International Business Times.

However, this does not needfully mean that Abel is countering the wishes of his erstwhile mentor. In fact, it whitethorn simply correspond a benignant of accounting repositioning.

Here are the details of the commercialized and what it mightiness mean for idiosyncratic investors.

Recent SEC filings amusement that Berkshire Hathaway has a stock repurchase statement with DaVita that requires the conglomerate to support its beneficial ownership beneath 45%. As DaVita repurchases its ain shares regularly, the company’s stock number goes down. This requires Berkshire Hathaway to trim its ain involvement successful bid to stay wrong the presumption of the stock repurchase agreement.

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Even with the repurchase statement successful place, determination could beryllium a much bearish crushed for the sale. Davita’s banal declined by treble digits successful 2025, successful spite of the S&P 500 rising by 17.9%, according to First Trust. It’s wholly imaginable that Abel and Berkshire simply soured connected the firm’s aboriginal outlook, looking to fastener successful profits oregon trim vulnerability to a marketplace laggard. However, there’s nary definitive nationalist denotation of this.

Individual investors should ne'er marque trades successful their ain accounts simply due to the fact that different steadfast oregon instauration does. This is existent successful the lawsuit of Berkshire Hathaway selling DaVita shares arsenic well.

For starters, there’s nary definitive mode to cognize wherefore precisely Berkshire sold the shares and the crushed whitethorn precise good person been structural alternatively than tactical.

Secondly, your idiosyncratic fiscal objectives and hazard tolerance are apt overmuch antithetic than those of Berkshire Hathaway and those should beryllium your guiding principles.

Lastly, adjacent Abel himself whitethorn beryllium regretting the sale, arsenic conscionable a fewer days later, DaVita reported blockbuster earnings, propelling its stock terms higher by astir 40%.

The bottommost enactment is that Berkshire’s merchantability of DaVita shares should not trigger a occurrence merchantability successful your ain portfolio successful and of itself. However, if your ain investigation shows a deterioration successful the company’s fundamentals, an summation successful its hazard illustration oregon a stretched valuation, you whitethorn see selling. When successful doubt, ever consult a licensed fiscal advisor.