Form 4: Berkshire Hathaway Sells DaVita Shares

Berkshire Hathaway Inc. and Warren E. Buffett reported the sale of 1,658,480 shares of DaVita Inc. common stock for approximately $200 million.

Summary

• Berkshire Hathaway Inc., a 10% owner and represented by Director Warren E. Buffett, sold 1,658,480 shares of DaVita Inc. common stock.
• The transaction occurred on January 29, 2026, at a price of $120.5561 per share.
• The total value of the shares sold is approximately $200,000,000.
• Following this sale, Berkshire Hathaway Inc. beneficially owns 30,100,585 shares of DaVita Inc.
• The sale was conducted under a Rule 10b5-1 pre-arranged trading plan.
• Beneficial ownership includes shares held by Government Employees Insurance Company (15,126,977 shares) and Berkshire's pension plans (14,973,608 shares).
• Warren E. Buffett disclaims beneficial ownership except for his pecuniary interest, and Berkshire and the pension plans disclaim ownership in the pension plan shares.

Sentiment

Score: 4

Explanation: StockSavvy.ai views this as a moderately negative signal. While the sale is part of a pre-arranged plan, a significant reduction in stake by a major, influential investor like Berkshire Hathaway can lead to negative market perception and potentially pressure the stock price.

Positives

• The transaction was executed under a Rule 10b5-1 plan, indicating a pre-planned and orderly disposition rather than an immediate reaction to new information.

Negatives

• A significant sale of 1,658,480 shares by a 10% owner and director, Berkshire Hathaway, could be perceived negatively by the market, potentially signaling a reduction in conviction or a portfolio rebalancing.
• The sale reduces Berkshire Hathaway's overall stake in DaVita Inc.

Future Outlook

NA

Industry Context

StockSavvy.ai notes that large institutional sales, even if pre-planned, can sometimes influence market sentiment, particularly when involving prominent investors like Berkshire Hathaway. DaVita operates in the healthcare services sector, specifically kidney care, which is subject to regulatory changes and evolving healthcare policies. A reduction in stake by a major investor might prompt other investors to re-evaluate their positions in the company or the sector.

Related Party Transactions

• The sale of DaVita Inc. common stock by Berkshire Hathaway Inc., a 10% owner and entity represented by a director (Warren E. Buffett), constitutes a related party transaction.

Stakeholder Impact

• Shareholders: May interpret the sale by a major investor as a negative signal, potentially leading to decreased confidence and downward pressure on the stock price.
• Company Management: Could face questions regarding the implications of a significant shareholder reducing their stake.

Key Dates

Recommendation

While a significant insider sale by Berkshire Hathaway is generally a negative signal, the transaction was executed under a pre-arranged 10b5-1 plan, suggesting it's a planned portfolio adjustment rather than a reaction to new adverse information. Given Berkshire Hathaway still retains a substantial stake, a 'hold' recommendation is appropriate for existing investors to monitor market reaction and future company performance, while new investors might exercise caution.

Keywords

Berkshire Hathaway, DaVita Inc., DVA, Warren Buffett, Insider Sale, Form 4, Stock Sale, 10b5-1 Plan, Institutional Investor, Healthcare Services