What’s So Good About DaVita (DVA) That Warren Buffett Remains Bullish On It Since 15 Years?
DaVita Inc. (NYSE:DVA) is included in our list of the best Warren Buffett stocks.
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Buffett added DaVita Inc. (NYSE:DVA) to his portfolio in 2011, purchasing 5.37 million shares worth $203.51 million, which made the stock Warren Buffett’s 20th biggest holding as of Q4 2011. Berkshire’s investment in the stock has grown to $3.61 billion as of Q4 2025, representing approximately 32 million shares.
DaVita Inc. (NYSE:DVA) also enjoys the confidence of other hedge funds, with 40 hedge funds remaining bullish on the stock. The combined hedge fund stake in the company totals $4.39 billion as of Q4 2025.
DaVita Inc. (NYSE:DVA)’s bullish case is supported by stable profitability, clinical differentiation, and orderly capital allocation, even as treatment volumes continue to face pressure. As of April 20, 2026, the stock has significantly outperformed its peers in 2026, with shares up more than 30%, compared with a 2.8% gain for the Medical Care Facilities industry. That reflects the stock’s resurgence from the 52-week low it hit earlier in the year.
In 2025, DaVita Inc. (NYSE:DVA) reported $13.64 billion in consolidated revenue, $2.09 billion in adjusted operating income, and more than $1 billion in free cash flow, highlighting the resilience of its core U.S. dialysis business, despite a 1.1% decline in treatments.
A key driver of optimism is DaVita Inc. (NYSE:DVA)’s integrated kidney care platform, which achieved profitability in 2025, earlier than management anticipated.
Executives noted that IKC patients demonstrate better outcomes compared to the broader dialysis population, including reduced hospitalization rates, fewer infections, stronger adherence, higher vaccination rates, and lower dialysis costs. This reinforces the view that the company’s value-based care model is both clinically effective and financially stable.
Management also outlined a credible path toward improving long-term treatment volumes through clinical initiatives, such as higher vaccination rates, GLP-1 adoption, advanced dialysis technologies, and its strategic investment in Elara Caring, announced in February.
While the full impact of these efforts may take time to materialize, management is confident that they can help drive approximately 2% volume growth over time.
Coupled with ongoing share buybacks and consistent free cash flow generation, the company continues to stand out as a defensive, cash-generative business, with additional upside tied to the successful execution of its clinical strategy.
DaVita Inc. (NYSE:DVA) is a healthcare company that caters to the needs of kidney patients.