Berkshire Hathaway offloaded nearly 1.7 million shares of DaVita worth $200 million on 29th January, weeks after the company, led by newly-appointed CEO Greg Abel, announced it could completely offload its $7 billion stake in Kraft Heinz.
Investors and analysts believe Warren Buffett left Abel with a massive portfolio and a pile of cash to manage, and the new CEO has already initiated a broader review of Berkshire’s holdings, which could lead to more trades in the near-term.
According to the 2nd February filing with the US Securities and Exchange Commission, Berkshire offloaded shares of DaVita, which operates a network of dialysis clinics. The move has investors worrying if Abel is reducing Berkshire’s exposure to the company, which Buffett invested in many years ago.
However, the latest stock sale might have to do with DaVita’s financials or outlook, but an agreement it signed with Berkshire in 2025, which limits its beneficial ownership to 45% of the business.
Under the terms of the agreement, DaVita can repurchase shares from Berkshire two days before it reports its quarterly earnings to maintain that 45% ownership stake. The company disclosed it repurchased $200 million worth of its shares from Berkshire since December-end through 2nd February, which is the exact transaction reported by Berkshire.
This move was unfortunate for Berkshire as DaVita shares soared 39% in the past five days after posting robust Q4 financial results. The company’s adjusted earnings per share (EPS) jumped over 50% to $3.40 from a year earlier, driven by a 10% revenue growth to $3.61 billion. For the full year 2026, the company guided for EPS growth of 45%.
Reason Behind Kraft Heinz Divestment
Berkshire Hathaway is the largest shareholder of Kraft Heinz. The stock of the ketchup maker has declined close to 70% from its 2017 highs. Berkshire Hathaway, under Buffett’s leadership, orchestrated the merger of Kraft and Heinz way back in 2015. However, the combined entity has faced difficulties in keeping up with changing consumer tastes and rising competition over the past decade.
Kraft Heinz now plans to split the business, with the separation expected to be completed by H2 2026, which management thinks could help streamline operations and reduce overheads. However, the announcement made in September 2025 did little to excite investors. Even Buffett expressed his discontent last year over the business split decision, telling a media outlet that he was ‘disappointed’ with Kraft Heinz’s decision. Now, his successor, Abel, appears to be following his predecessor’s sentiments.
‘My sense is that Greg Abel’s leadership style may be a departure from Buffett’s, and this sale, if completed, would represent a shift in corporate mindset. Berkshire under Buffett typically only made acquisitions, not divestitures. It’s not inconceivable, in our view, that Abel may likely assess every Berkshire subsidiary and decide to jettison those that do not meet his internal hurdles,’ CFRA Research analyst Cathy Seifert had stated.
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