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txlaw

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DaVita Thesis?

« on: November 08, 2012, 11:13:45 AM »Quote

0

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

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Re: DaVita Thesis?

« Reply #1 on: November 08, 2012,

11:20:20 AM »

Quote

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.


Yours Truly

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Re: DaVita Thesis?

« Reply #2 on: November 08, 2012,Quote

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Author Topic: DaVita Thesis? (Read 7543 times)

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DaVita Thesis? http://www.cornerofberkshireandfairfax.ca/forum/berkshire-hathaway/da...

1 of 15 13/07/2013 17:44

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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


Compounders | Cannibals | Spin-offs

Palantir

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Re: DaVita Thesis?


04:45:27 PM »

Quote

« Last Edit: November 08, 2012, 04:50:26 PM by Palantir »

It's not that hard to see really...good company with very strong growth

characteristics....


My Portfolio: PH, GOOG, MSFT, BRK.B, RHT, RSKIA, AAPL

txlaw

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Re: DaVita Thesis?


08:44:47 AM »

Quote

Article from Geoff Gannon on DaVita.

http://www.gurufocus.com/news/196687/why-ted-weschler-keeps-buying-

davita-dva


Grenville

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Re: DaVita Thesis?


09:07:23 AM »

Quote

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

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.


jeffmori7

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Re: DaVita Thesis?


06:58:16 PM »

Quote

http://www.bizjournals.com/denver/news/2012/11/27/buffet-increases-share-

of-davita-stock.html

Now a nearly 13% stake. Is Berkshire doing a BNSF with Davita? Building a


2 of 15 13/07/2013 17:44

« Last Edit: November 27, 2012, 07:15:21 PM by jeffmori7 »

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


tooskinneejs

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Re: DaVita Thesis?

« Reply #7 on: December 02, 2012,

05:17:54 AM »

Quote

Davita being accused of a massive overbilling fraud...

http://www.cnn.com/2012/11/30/health/medicare-fraud-

case/index.html?hpt=hp_t3


Grenville

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Re: DaVita Thesis?


09:40:23 AM »

Quote

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

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.


jeffmori7

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Re: DaVita Thesis?


03:36:48 PM »

Quote

Still adding:

http://www.mysanantonio.com/business/article/Berkshire-Hathaway-still-

adding-to-DaVita-stake-4103618.php


fareastwarriors

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Re: DaVita Thesis?


08:08:35 AM »

Quote

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


3 of 15 13/07/2013 17:44

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Still adding:

http://www.mysanantonio.com/business/article/Berkshire-Hathaway-still-adding-to-DaVita-

stake-4103618.php

Another Bloomberg article about BRK adding to DaVita

http://www.bloomberg.com/news/2012-12-11/berkshire-adding-davita-

makes-pick-among-top-at-buffett-s-firm.html


berkshiremystery

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Re: DaVita Thesis?

« Reply #11 on: January 18, 2013,

07:39:55 AM »

Quote

« Last Edit: January 18, 2013, 07:48:25 AM by berkshiremystery »

Berkshire Hathaway Enlarges DaVita Stake as Company Expands

2013-01-18 Forbes.com

http://www.forbes.com/sites/gurufocus/2013/01/18/berkshire-hathaway-

enlarges-davita-stake-as-company-expands/?partner=yahootix

------

Why Ted Weschler Keeps Buying DaVita (DVA)

2012-11-09 GuruFocus.com

http://www.gurufocus.com/news/196687/why-ted-weschler-keeps-buying-

davita-dva

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LC

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Re: DaVita Thesis?


07:26:16 PM »

Quote

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


"Lethargy bordering on sloth remains the cornerstone of our investment style."

siddharth18

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Re: DaVita Thesis?


01:17:32 AM »

Quote

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?


ItsAValueTrap

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Re: DaVita Thesis?

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


4 of 15 13/07/2013 17:44

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PM »

« Last Edit: May 06, 2013, 11:49:19 PM by ItsAValueTrap »

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.


"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

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Re: DaVita Thesis?

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

AM »

Quote

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).


dcollon

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Re: DaVita Thesis?

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

PM »

Quote

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 company’s


5 of 15 13/07/2013 17:44

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


Yours Truly

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Re: DaVita Thesis?

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

PM »

Quote

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 company’s 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



ItsAValueTrap

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Re: DaVita Thesis?

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

PM »

Quote

Some information on standstill agreements:

http://scholarlycommons.law.wlu.edu/cgi/viewcontent.cgi?article=2948&

context=wlulr





-Warren Buffett

Grenville

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Re: DaVita Thesis?

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

PM »

Quote

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

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!


6 of 15 13/07/2013 17:44


zarley

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Re: DaVita Thesis?

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

PM »

Quote

8K:

http://www.sec.gov/Archives/edgar/data/927066/000119312513204531

/d533361d8k.htm

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 Company’s 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 Company’s 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.


Drokos

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Re: DaVita Thesis?

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

PM »

Quote

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.


7 of 15 13/07/2013 17:44

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.


ItsAValueTrap

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Re: DaVita Thesis?

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

PM »

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

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.




8 of 15 13/07/2013 17:44



-Warren Buffett

Yours Truly

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Re: DaVita Thesis?

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

AM »

Quote

There's that nice pop on DVA



Drokos

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Re: DaVita Thesis?

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

PM »

Quote

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.


mountboney

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Re: DaVita Thesis?

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

AM »

Quote

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.


ItsAValueTrap

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Re: DaVita Thesis?

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

AM »

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).





9 of 15 13/07/2013 17:44


-Warren Buffett

enoch01

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Re: DaVita Thesis?

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

AM »

Quote

« Last Edit: May 09, 2013, 09:30:49 AM by enoch01 »

Instead of thinking about the Medicare/Medicaid revenue as profitless

business, maybe it’s 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.


ItsAValueTrap

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Re: DaVita Thesis?

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

AM »

Quote

Davita's and Fresnius' margins seem to have stayed the same over the past

decade.

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.





-Warren Buffett

fareastwarriors

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Re: DaVita Thesis?

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

AM »

Quote

http://www.bloomberg.com/news/2013-05-24/berkshire-s-weschler-holds-

almost-150-million-of-davita.html


10 of 15 13/07/2013 17:44

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.


Yours Truly

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Re: DaVita Thesis?

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

AM »

Quote

Quote from: fareastwarriors on May 25, 2013, 10:06:04 AM

http://www.bloomberg.com/news/2013-05-24/berkshire-s-weschler-holds-almost-

150-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



ItsAValueTrap

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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.


11 of 15 13/07/2013 17:44

« Last Edit: June 15, 2013, 04:04:21 PM by ItsAValueTrap »

-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.





-Warren Buffett

rogermunibond

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Re: DaVita Thesis?

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

AM »

Quote

CMS proposes 9.4% cut for dialysis providers

By Rich Daly

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%.


12 of 15 13/07/2013 17:44

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 2012—followed 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.


fareastwarriors

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Re: DaVita Thesis?

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

PM »

Quote

http://www.bloomberg.com/news/2013-07-05/buffett-s-berkshire-increases-

davita-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.


twacowfca

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Re: DaVita Thesis?

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

PM »

Quote

I smell a deal.

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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« Last Edit: July 12, 2013, 07:55:34 PM by twacowfca »

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.


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.


twacowfca

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Re: DaVita Thesis?


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« Last Edit: Today at 07:34:12 AM by twacowfca »

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

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?


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