Berkshire’s New CEO Just Offloaded DaVita Stocks: Should You Sell Yours Too?
Written by
John Csiszar
Edited by
Angela Corry
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For the first time since 1965, Berkshire Hathaway has made a major trade under the direction of someone other than former CEO Warren Buffett. The conglomerate recently sold roughly 1.65 million shares of DaVita Inc. (NYSE: DVA), valued at about $200 million, under newly appointed CEO Greg Abel, who took the helm of the company in 2026, reported the International Business Times.
However, this does not necessarily mean that Abel is countering the wishes of his former mentor. In fact, it may simply represent a type of accounting repositioning.
Here are the details of the trade and what it might mean for individual investors.
DaVita Share Repurchase Agreement
Recent SEC filings show that Berkshire Hathaway has a share repurchase agreement with DaVita that requires the conglomerate to keep its beneficial ownership below 45%. As DaVita repurchases its own shares regularly, the company’s share count goes down. This requires Berkshire Hathaway to trim its own stake in order to remain within the terms of the share repurchase agreement.
Why Investors May Be Concerned
Even with the repurchase agreement in place, there could be a more bearish reason for the sale. Davita’s stock declined by double digits in 2025, in spite of the S&P 500 rising by 17.9%, according to First Trust. It’s entirely possible that Abel and Berkshire simply soured on the firm’s future outlook, looking to lock in profits or trim exposure to a market laggard. However, there’s no definitive public indication of this.
What Should Investors Do Now?
Individual investors should never make trades in their own accounts simply because another firm or institution does. This is true in the case of Berkshire Hathaway selling DaVita shares as well.
For starters, there’s no definitive way to know why exactly Berkshire sold the shares and the reason may very well have been structural rather than tactical.
Secondly, your personal financial objectives and risk tolerance are likely much different than those of Berkshire Hathaway and those should be your guiding principles.
Lastly, even Abel himself may be regretting the sale, as just a few days later, DaVita reported blockbuster earnings, propelling its share price higher by roughly 40%.
The bottom line is that Berkshire’s sale of DaVita shares should not trigger a fire sale in your own portfolio in and of itself. However, if your own analysis shows a deterioration in the company’s fundamentals, an increase in its risk profile or a stretched valuation, you may consider selling. When in doubt, always consult a licensed financial advisor.
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