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Berkshire reduces its stake in DaVita to 45% by selling some shares

Berkshire Hathaway, owned by Warren Buffett, said it sold 203 091 shares of DaVita on Thursday evening, reducing the company's holdings to 35.89 millions shares. This represents a 45% stake in DaVita worth approximately $6.4 billion.

Berkshire stated in a regulatory filing that the sale on February 11 was necessary pursuant to an agreement under which DaVita had agreed to purchase enough shares every quarter to reduce Berkshire’s ownership stake to 45 percent.

Berkshire stated that the April 2024 agreement requires Berkshire also to vote any shares above a 40% stake according to DaVita’s board of directors' recommendation.

Berkshire owns DaVita since the fourth quarter 2011.

Ted Weschler is the one who has spearheaded this investment. He joined Berkshire in 2012 as a portfolio director. He had previously invested in DaVita through his former hedge-fund firm, Peninsula Capital Advisors.

Weschler, Todd Combs and Buffett are all involved in managing Berkshire Investment portfolio. Berkshire did not disclose how much money they manage in the last few months.

Buffett has been the leader of Omaha-based Omaha Conglomerate, a conglomerate founded in Nebraska, since 1965. Reporting by Jonathan Stempel, New York; editing by Sandra Maler and Les Adler

(source: Reuters)