DaVita Thesis?

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Author txlaw
Lifetime Member Hero Member

Topic: DaVita Thesis? (Read 7543 times)

DaVita Thesis?
on: November 08, 2012, 11:13:45 AM Quote

Posts: 2283 Country:

I have no plans on putting any money into DaVita, but I'm interested in seeing if any board members have a thesis on why BRK is so interested in the company. Anyone want to provide such a thesis? I know very little about the company.
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mysticdrew
Jr. Member

Re: DaVita Thesis?

Reply #1 on: November 08, 2012, 11:20:20 AM

Quote

Posts: 89

Long term trends in aging and health care. high growth in diabetes and kidney disease, increased use of dialysis. Potentially some moat around brand and scale. I can't really name another nationwide competitor.
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Yours Truly
Full Member

Re: DaVita Thesis?

Reply #2 on: November 08, 2012,

Quote

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12:37:11 PM Quote from: txlaw on November 08, 2012, 11:13:45 AM

I have no plans on putting any money into DaVita, but I'm interested in seeing if any board members have a thesis on why BRK is so interested in the company. Anyone want to provide such a thesis? I know very little about the company.

I believe dialysis falls within Ted's circle of competence and he must really like the wacky CEO
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Palantir
Hero Member

Re: DaVita Thesis?

Reply #3 on: November 08, 2012, 04:45:27 PM

Quote

It's not that hard to see really...good company with very strong growth characteristics....
Posts: 927 Country: My Portfolio: PH, GOOG, MSFT, BRK.B, RHT, RSKIA, AAPL Last Edit: November 08, 2012, 04:50:26 PM by Palantir Report to moderator Logged

txlaw
Lifetime Member Hero Member

Re: DaVita Thesis?

Reply #4 on: November 13, 2012, 08:44:47 AM

Quote

Article from Geoff Gannon on DaVita.

Posts: 2283 Country:

http://www.gurufocus.com/news/196687/why-ted-weschler-keeps-buyingdavita-dva
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Grenville
Lifetime Member Hero Member

Re: DaVita Thesis?

Reply #5 on: November 13, 2012, 09:07:23 AM

Quote

Quote from: txlaw on November 13, 2012, 08:44:47 AM

Posts: 645 Country:

Article from Geoff Gannon on DaVita. http://www.gurufocus.com/news/196687/why-ted-weschler-keeps-buying-davita-dva

Thanks for the article. Interesting company.

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jeffmori7
Full Member

Re: DaVita Thesis?

Reply #6 on: November 27, 2012, 06:58:16 PM

Quote

Posts: 236 Country:

http://www.bizjournals.com/denver/news/2012/11/27/buffet-increases-shareof-davita-stock.html Now a nearly 13% stake. Is Berkshire doing a BNSF with Davita? Building a

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large position on the open market before a buyout someday?

http://www.dataroma.com/m/ins/ins.php?t=y&am=0&sym=DVA&L=1
Last Edit: November 27, 2012, 07:15:21 PM by jeffmori7 Report to moderator Logged

tooskinneejs
Lifetime Member Full Member

Re: DaVita Thesis?

Reply #7 on: December 02, 2012, 05:17:54 AM

Quote

Davita being accused of a massive overbilling fraud...

Posts: 196

http://www.cnn.com/2012/11/30/health/medicare-fraudcase/index.html?hpt=hp_t3
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Grenville
Lifetime Member Hero Member

Re: DaVita Thesis?

Reply #8 on: December 02, 2012, 09:40:23 AM

Quote

Quote from: tooskinneejs on December 02, 2012, 05:17:54 AM

Posts: 645 Country:

Davita being accused of a massive overbilling fraud... http://www.cnn.com/2012/11/30/health/medicare-fraud-case/index.html?hpt=hp_t3

Thanks. Not the best PR for Davita. + The Vainer Private Civil Suit started in 2008 and covers Vitamin D and Iron Agents + The Woodward Private Civil suit that was started in 2007 was settled recently for 55mln recently and related to EPO dosages + I'm not a huge fan of the 100mln spent to build the new HQ in Colorado. I don't know if that's a lot for HQ but it seems a bit high. Thoughts? + Kent Thiry does get paid well + If the claims from the Vainer suit are true I don't understand why the government is not involved in supporting the litigation.
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jeffmori7
Full Member

Re: DaVita Thesis?

Reply #9 on: December 09, 2012, 03:36:48 PM

Quote

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Still adding: http://www.mysanantonio.com/business/article/Berkshire-Hathaway-stilladding-to-DaVita-stake-4103618.php

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fareastwarriors
Hero Member

Re: DaVita Thesis?

Reply #10 on: December 11, 2012, 08:08:35 AM

Quote

Posts: 616

Quote from: jeffmori7 on December 09, 2012, 03:36:48 PM

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Country:
Still adding: http://www.mysanantonio.com/business/article/Berkshire-Hathaway-still-adding-to-DaVitastake-4103618.php

Another Bloomberg article about BRK adding to DaVita http://www.bloomberg.com/news/2012-12-11/berkshire-adding-davitamakes-pick-among-top-at-buffett-s-firm.html

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berkshiremystery
Lifetime Member Hero Member

Re: DaVita Thesis?

Reply #11 on: January 18, 2013, 07:39:55 AM

Quote

Berkshire Hathaway Enlarges DaVita Stake as Company Expands 2013-01-18 Forbes.com http://www.forbes.com/sites/gurufocus/2013/01/18/berkshire-hathawayenlarges-davita-stake-as-company-expands/?partner=yahootix
Posts: 759

-----Why Ted Weschler Keeps Buying DaVita (DVA) 2012-11-09 GuruFocus.com http://www.gurufocus.com/news/196687/why-ted-weschler-keeps-buyingdavita-dva
Last Edit: January 18, 2013, 07:48:25 AM by berkshiremystery Report to moderator Logged

LC
Sr. Member

Re: DaVita Thesis?

Reply #12 on: January 19, 2013, 07:26:16 PM

Quote

DVA is also a hedge for BRK's large KO exposure.

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siddharth18
Full Member

Re: DaVita Thesis?

Reply #13 on: January 20, 2013, 01:17:32 AM

Quote

Posts: 113

Ted Weschler has known DVA and has been buying DVA since 10+ years. He has no shortage of capital seeing as how he works for BRK now. He wants to buy DVA as much as possible without causing a mayhem, but seeing as how stock has been rising relentlessly, one has to wonder what does he think this company is worth?
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ItsAValueTrap
Hero Member

Re: DaVita Thesis?

Reply #14 on: May 06, 2013, 11:47:20

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PM

I believe here's the thesis in a nutshell: 1- Returns on capital are very high. http://www.gurufocus.com/financials/dva EBIT / (Net fixed Assets + Working Capital) is around 50%. In other words, pre-tax ROIC is roughly 50%. 2- Davita is really well managed. Ken Thiry became the CEO in 1999. His asset allocation is top notch. He buys back shares when they are cheap, uses stock as currency when it is expensive, etc. etc. This is mostly a bet on management. Thiry came in and turned the company around because the previous management team made a mess out of it. If Thiry dies, it will be really bad for this company. I don't think that Davita has a moat. --This is a wonderful business selling at an ok price.
Last Edit: May 06, 2013, 11:49:19 PM by ItsAValueTrap Report to moderator Logged

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"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Charlie understood this early; I was a slow learner. But now, when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements." -Warren Buffett

SwedishValue
Newbie AM

Re: DaVita Thesis?

Reply #15 on: May 07, 2013, 12:39:37

Quote

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One of my better friend's father is one of the best kidney doctors in Sweden. I talked to him about companies providing dialysis and he suggests that "the more, the better" a dialysis treatment is. He suggested the trend of recent years that increased amount of treatment for dialysis patients is very likely to continue as we grow richer, as it leads to a noticable improvement in the well-being of the patients. Sure, you shouldn't ask the barber whether you need a haircut, but I find that this thesis goes well with my basic knowledge in medicine. I looked through a couple of 10-Ks for DVA, and I cannot say I understand the investment thesis at the current price (although I would rather bet on the ability of Ted than myself).
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dcollon
Lifetime Member Hero Member PM

Re: DaVita Thesis?

Reply #16 on: May 07, 2013, 01:40:52

Quote

DaVita enters standstill agreement with Berkshire Hathaway (BRK.B) -- 8K Tuesday, May 07, 2013 08:35:55 PM (GMT)

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Pursuant to the agreement, BRK.B agreed, subject to certain exceptions and to the termination provisions specified in the Standstill agreement, not to acquire beneficial ownership of the company exceeding 25% of the companys

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then-outstanding common stock, and to certain other provisions respecting stockholders meetings, mergers and other matters specified therein. Berkshire currently holds 14.2% of the outstanding shares of DVA according to a Form 4 filed on 4-Mar
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Yours Truly
Full Member PM

Re: DaVita Thesis?

Reply #17 on: May 07, 2013, 02:11:24

Quote

Posts: 188 Country:

Quote from: dcollon on May 07, 2013, 01:40:52 PM DaVita enters standstill agreement with Berkshire Hathaway (BRK.B) -- 8K Tuesday, May 07, 2013 08:35:55 PM (GMT)

Pursuant to the agreement, BRK.B agreed, subject to certain exceptions and to the termination provisions specified in the Standstill agreement, not to acquire beneficial ownership of the company exceeding 25% of the companys then-outstanding common stock, and to certain other provisions respecting stockholders meetings, mergers and other matters specified therein. Berkshire currently holds 14.2% of the outstanding shares of DVA according to a Form 4 filed on 4-Mar

I'm going to speculate that Ted is going to build his position right near that 25% threshold if given more capital to put to use
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ItsAValueTrap
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Re: DaVita Thesis?

Reply #18 on: May 07, 2013, 02:18:04

Quote

Some information on standstill agreements: http://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?article=2948& context=wlulr

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"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Charlie understood this early; I was a slow learner. But now, when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements." -Warren Buffett

Grenville
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Re: DaVita Thesis?

Reply #19 on: May 07, 2013, 02:37:34

Quote

Quote from: ItsAValueTrap on May 07, 2013, 02:18:04 PM

Posts: 645 Country:

Some information on standstill agreements: http://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?article=2948&context=wlulr

Thanks for the link. Was curious about standstill agreements and their background!

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zarley
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Re: DaVita Thesis?

Reply #20 on: May 07, 2013, 03:37:13

Quote

8K: http://www.sec.gov/Archives/edgar/data/927066/000119312513204531 /d533361d8k.htm

Posts: 329 Country:

Standstill Agreement: http://www.sec.gov/Archives/edgar/data/927066/000119312513204531 /d533361dex991.htm

Quote from: DVA Standstill Agreement Section 1. Proposals. (a) For any period (the Standstill Period) during which Investor beneficially owns ... 15% or more of the then-outstanding Common Stock, Investor shall not, directly or indirectly, (i) call, or seek to call, a meeting of the stockholders of the Company, (ii) submit any stockholder proposal ... to seek representation on the Companys Board of Directors, or any other proposal to be considered by the stockholders of the Company, nor publicly recommend that any other stockholder vote in favor of, or otherwise publicly comment favorably about, or solicit votes or proxies for, any such proposal submitted by another stockholder of the Company, (iii) otherwise seek to control or influence the management, Board or policies of the Company, or (iv) nominate any directors for election at any meeting of stockholders of the Company. (b) During the Standstill Period, Investor shall cause, for any meeting of stockholders of the Company, all shares of voting stock of the Company owned by Investor as of the record date, to be present for quorum purposes. (c) From and after the Investment Authority Date, Investor shall cause any Excess Shares to vote or consent on any matter in the same proportion as the votes or consents of shares of the voting stock of the Company voted or consented with respect to such matter (excluding shares with respect to which the votes were withheld, abstained or otherwise not cast) and not beneficially owned by Investor, whether at an annual or special meeting of stockholders of the Company, by written consent or otherwise. In furtherance of the foregoing, Investor shall deliver to the Company upon the Companys written request, with respect to any Excess Shares, executed proxies naming the proxies appointed by the Company, so that the Company may vote such Excess Shares in the proportional manner described in this Section 1(c). Excess Shares means any shares of voting stock of the Company beneficially owned by Investor in excess of 15% of the then-outstanding voting stock of the Company, and Investment Authority Date means the first date on which both (i) Warren E. Buffett is no longer Chief Executive Officer of Investor and (ii) R. Ted Weschler is no longer an investment manager of Investor.

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Drokos
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Re: DaVita Thesis?

Reply #21 on: May 07, 2013, 07:25:08

Quote

Posts: 11

I haven't looked into the name for a few years, but here is my quick take. The thesis seems simple: 1) Customer is trapped, once you start starting using dialysis you're going to need it for life or until you get a new kidney 2) Duopoly market - DVA and FMS dominate the market (at least in the US) scale advantages make it unlikely for a new entrant to come in and undercut you on price.

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3) Favorable demographic and lifestyle trends should provide a long-term tailwind However, the biggest concern and the reason I would never invest in it is that you are reliant on the government. something like 60-70% of revenue is from Medicare. You are making the (IMO risky) assumption that Medicare doesnt decide to cut reimbursement rates. IMO that risk is too great. Also, with most healthcare fee for services, it is ripe for fraud. Over prescribing EPO or what not.
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ItsAValueTrap
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Re: DaVita Thesis?

Reply #22 on: May 07, 2013, 09:54:25

Quote

Quote 1) Customer is trapped, once you start starting using dialysis you're going to need it for life or until you get a new kidney

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I don't think that they are. I believe that medicare customers are free to change clinics. Allowing customers to change clinics is very important. If they weren't allowed to change clinics, they would have a hard time going on vacation since they HAVE to find a city with a suitable dialysis clinic. The government also wants to have competition amongst dialysis providers. (Even if it's not a good idea???) 2- I don't really understand how all the Medicare and Medicaid rules and regulations work. The government has numerous competing goals: a- Reduce cost to taxpayers. Quality care may reduce costs to taxpayers. b- Ensure that patients receive quality care. In theory, you can do this by giving bonus payments to clinics that deliver quality care. c- Avoid fraud. Usually when you transfer money to other people, fraudsters will figure out how to abuse the system. If you allow bonus payments for quality care, then unscrupulous people will figure out how to game the system. So Medicare might be layering on all these insane rules to stomp out fraud. Unfortunately, they may not be doing a good job of ensuring quality care. d- Sometimes the politicians interfere. This can lead to really dumb decisions. If they think that Medicare expenses can be cut (because they want to be seen as people who create efficiencies and cut out excessive spending and can balance a budget), then this could have reactions that causes overall costs to go up. (e.g. dialysis clinics are forced to provide crappy care to stay in business, which affects the health of patients, which end up requiring really expensive treatment when they have health problems) Apparently this leads to a crazy system with lots of dumb rules.
Quote 3) Favorable demographic and lifestyle trends should provide a long-term tailwind

It seems to me that Davita has grown much faster than the overall market.
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price. Charlie understood this early; I was a slow learner. But now, when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements." -Warren Buffett

Yours Truly
Full Member AM

Re: DaVita Thesis?

Reply #23 on: May 08, 2013, 07:25:22

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There's that nice pop on DVA

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Drokos
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Re: DaVita Thesis?

Reply #24 on: May 08, 2013, 04:50:25

Quote

Posts: 11

I didn't mean they are necessarily locked into Davita, but they will be a dialysis customer for life until they get a kidney transplant. The ultimate repeat customer business. Vacation issue is one of the reasons why it makes sense to a have a duopoly. If I am a DVA/FMS user and I go on vacation or travel I am more comfortable going to a branch of the same company rather than trying to find a mom and pop no name dialysis clinic. I think it is too easy to see a situation like sequestration where there could be 1-5% across the board medicare reimbursement cut that hits dialysis. If it was more reliant on commercial insurance or self pay I would agree that it is a wonderful business, however with the risk of Medicare cuts I am not so convinced.
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mountboney
Newbie AM

Re: DaVita Thesis?

Reply #25 on: May 09, 2013, 07:48:02

Quote

Posts: 26

If Geoff Gannon's facts are correct that 100% of profits come from 10% of patients with no profits from the 90% on medicare/medicade then that's roughly $1.5mm in enterprise value per profitable patient. I hope I never have kidney failure.
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ItsAValueTrap
Hero Member AM

Re: DaVita Thesis?

Reply #26 on: May 09, 2013, 08:27:17

Quote

In 2011 it averaged out to around $49,000/year in revenue for a patient. 2- Please... sign up for organ donation. Kidney disease is a terrible thing. You're tied to a hospital (and you still have health issues because dialysis doesn't replace all the functions of a kidney).
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enoch01
Lifetime Member Sr. Member AM

Re: DaVita Thesis?

Reply #27 on: May 09, 2013, 09:26:15

Quote

Posts: 388 Country:

Instead of thinking about the Medicare/Medicaid revenue as profitless business, maybe its just as easy to think about it as float that costs very little. The economies of scale that DaVita is achieving as they get bigger flows to the owners. Medicare is financing the operation and asking nothing in return. Does Medicare reimburse different amounts for the same service at different dialysis centers? If not, then DaVita's increasing market share enhances it's moat, so long as it continues to gain bargaining power on its costs. Update: Hm, I didn't realize they also carry about $8B in debt. That undercuts my idea.
Last Edit: May 09, 2013, 09:30:49 AM by enoch01 Report to moderator Logged

ItsAValueTrap
Hero Member AM

Re: DaVita Thesis?

Reply #28 on: May 09, 2013, 09:35:22

Quote

Davita's and Fresnius' margins seem to have stayed the same over the past decade.
Posts: 693 Country:

http://www.gurufocus.com/financials/dva http://www.gurufocus.com/financials/FMS I'm guessing that economies of scale have been offset by lower profitability of the overall industry. (Does anybody know the actual answer to this? I don't.) 2- This blog is interesting: http://whyisamericanhealthcaresoexpensive.blogspot.ca/search?q=dialysis It seems that the level of dialysis care provided depends on social, political, and ethical issues. An argument can be made for spending more money on keeping people alive. An argument can be made for spending less money and allowing some people to die a peaceful death (instead of being medical zombies). And then there are issues of fairness.
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fareastwarriors
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Re: DaVita Thesis?

Reply #29 on: May 25, 2013, 10:06:04

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http://www.bloomberg.com/news/2013-05-24/berkshire-s-weschler-holdsalmost-150-million-of-davita.html

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Ted Weschler has a personal holding in the dialysis provider valued at almost $150 million. Weschler has 1.19 million shares, or about 1.1 percent, of the Denver-based company, according to a regulatory filing yesterday. The holding was amassed before he joined Omaha, Nebraska-based Berkshire, according to the document.
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Yours Truly
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Re: DaVita Thesis?

Reply #30 on: May 27, 2013, 08:51:55

Quote

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Quote from: fareastwarriors on May 25, 2013, 10:06:04 AM http://www.bloomberg.com/news/2013-05-24/berkshire-s-weschler-holds-almost150-million-of-davita.html

Ted Weschler has a personal holding in the dialysis provider valued at almost $150 million. Weschler has 1.19 million shares, or about 1.1 percent, of the Denver-based company, according to a regulatory filing yesterday. The holding was amassed before he joined Omaha, Nebraska-based Berkshire, according to the document.

I don't see Ted's name anywhere on the DVA 13G? whereas on the Starz, DTV 13G, its listed
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ItsAValueTrap
Hero Member

Re: DaVita Thesis?

Reply #31 on: June 14, 2013, 12:39:58 AM

Quote

I've been doing some research on DaVita. I can see why somebody might be attracted to the stock. Kent Thiry is one of the best CEOs in that niche. Davita and Fresenius post similar returns on capital though Davita stock has performed better due to superior asset allocation (?and faster growth?). HOWEVER... Thiry strikes me an unethical. Yes, the whole for-profit dialysis industry is unethical. The economic reality is that only the cutthroat survive. Both Fresenius and Davita have paid settlements over Medicare fraud. But, Thiry strikes me as an unethical person. -He talks a lot about improving patient outcomes. Yet his company was putting patients at risk by overprescribing EPO just to make a little extra profit. They reuse dialysis filters (unlike Fresenius, which has moved towards single-use filter). Many of the staff at DaVita are unhappy that cost-cutting measures are putting patients at risk. -He talks a lot about saving the American taxpayer money. Yet DaVita has participated in many instances of Medicare fraud: overprescribing EPO, wasting drugs, etc.

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-Thiry's salary has grown much faster than Davita's profits. Presumably, the board made Weschler enter into a standstill agreement. Berkshire Hathaway gets very little out of the standstill agreement while the board of directors gets extra job protection.
Quote Does Medicare reimburse different amounts for the same service at different dialysis centers? If not, then DaVita's increasing market share enhances it's moat, so long as it continues to gain bargaining power on its costs.

DaVita actively tries to create monopolies in local markets. For example, they paid doctors to enter into 10-year non-compete agreements. Patients do not want to drive excessive distances to get to a dialysis clinic (especially if they are so sick that they cannot drive themselves). So if there is only one clinic near them, they don't have much of a choice.
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"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price. Charlie understood this early; I was a slow learner. But now, when buying companies or common stocks, we look for first-class businesses accompanied by first-class managements." -Warren Buffett

rogermunibond
Lifetime Member Sr. Member AM

Re: DaVita Thesis?

Reply #32 on: July 02, 2013, 07:34:58

Quote

CMS proposes 9.4% cut for dialysis providers By Rich Daly

Posts: 305 Country:

Posted: July 1, 2013 - 8:00 pm ET Dialysis service providers would see a 9.4% cut to their Medicare pay in 2014 under a proposed CMS update (PDF) issued late Monday. Under a provision of the last-minute fiscal deal reached on New Year's Eve, the CMS proposed recalculating payments to dialysis providers to obtain $4.9 billion in savings. Dialysis provider shares lost value in afterhours trading on word of the proposed rate cut. For instance, DaVita HealthCare Partners, the country's second-largest dialysis provider, dropped 5.5% Monday night. The new rate stems from rebasing Medicare's bundled payments to dialysis providers to bring the reimbursement in line with lower use of a costly group of anti-anemia drugs, which represent Medicare's largest drug expenditure. The current rate is based on 2007 treatment protocols, and the use of them has dropped significantly in recent years due to safety concerns. The agency compared treatment costs for end-stage renal disease in 2007 and 2012 and concluded that a $29.52 reduction in the $246.47 base rate per treatment was in order. That cut would provide a 2014 dialysis base rate of $216.95, or down 12%. That blow is mitigated somewhat by an adjusted marketbasket update of 2.5%.

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The proposed rule sought comments over whether the phase-in period should occur over longer than one year. In 2011, the CMS spent $10.1 billion on 365,000 beneficiaries with end-stage renal disease, according to the Government Accountability Office The legislative requirement for Medicare to change the dialysis payment folded into the American Taxpayer Relief Act of 2012followed a December GAO report that argued Medicare has overpaid for end-stage renal disease treatment by relying on 5-year-old drug use trends that are no longer accurate. The proposed rule also includes changes to the ESRD Quality Improvement Program, which could cost dialysis providers as much as 2% of their Medicare payments if they fail to meet performance targets. The CMS will accept comments on the proposed rule until Aug. 30.
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fareastwarriors
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Re: DaVita Thesis?

Reply #33 on: July 05, 2013, 04:10:44

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http://www.bloomberg.com/news/2013-07-05/buffett-s-berkshire-increasesdavita-stake-4-3-amid-stock-slide.html Berkshire bought 639,200 DaVita shares on July 2 and 3 for about $73.4 million, according to a regulatory filing today by the Omaha, Nebraska-based investment company.
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twacowfca
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Re: DaVita Thesis?

Reply #34 on: July 12, 2013, 07:25:43

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I smell a deal.
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The pattern of BRK's buying DVA over the last two years is reminiscent of their pattern of acquiring BNSF. Opportunistic purchases on the dips at a gradually increasing price for a massive holding. The maximum price BRK paid this year was $119.98/ share, not far from the current price. There are three recent events that suggest there could be an offer to acquire DVA announced by BRK as soon as Q4 this year. 1) DVA's board has authorized an initiative that may increase the existing grants of stock appreciation rights to their CEO and other key employees. A proposal by a shareholder activist to eliminate the immediate vesting of these rights upon a change of control was voted down at their recent AGM. 2) The recent standstill agreement signed with longtime DVA shareholder Ted Weschler acting also for BRK may be a prelude to an acquisition offer. 3) DVA has finally hired a permanent CFO with an interesting background. He holds a Ph.D in molecular biology from Cambridge University. He has run biotech companies. In recent years he has worked on Wall Street, first as a

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DaVita Thesis?

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deal maker for Credit Suisse and recently for Goldman Sachs. It goes without saying who WEB's favorite investment banker is. DVA's new CFO will be joining them as their Financial VP in mid September. He will officially assume the duties of CFO on Sept. 31, one day after they file their Q3. It will be interesting to see what happens after that.
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rogermunibond
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Re: DaVita Thesis?

Reply #35 on: Today at 06:13:33 AM

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Their new cfo's background would be useful less with a BRK deal and more if DVA went on a Valiant Pharma path.
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twacowfca
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Re: DaVita Thesis?

Reply #36 on: Today at 07:29:54 AM

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Quote from: rogermunibond on Today at 06:13:33 AM

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Their new cfo's background would be useful less with a BRK deal and more if DVA went on a Valiant Pharma path.

That's interesting as well. Their recent large acquisition seems to be working out well. It certainly hasn't cooled Weschler's ardor for buying their stock. It's not inconsistent with the other thesis, however. The companies Berkshire acquires are enabled to do many potentially high return, usually bolt on acquisitions of their own without being constrained by financing or worries of becoming over levered, or the possibility of the CEO losing his job if an acquisition doesn't work out as well as expected.
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Re: DaVita Thesis?

Reply #36 on: Today at 07:29:54 AM

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