10 Best Performing Warren Buffett Stocks in 2024

3. DaVita Inc. (NYSE:DVA)

Warren Buffett’s Q2 2024 Stake: $5 Billion

Year to Date Gain as of September 20: 52.62%

Number of Hedge Fund Investors In Q2 2024: 34

DaVita Inc. (NYSE:DVA) is one of Warren Buffett’s top investments in the healthcare sector, specializing in providing kidney dialysis services. It is one of the best-performing Warren Buffett stocks in 2024, benefiting from solid service demand that has yielded impressive financial results.

DaVita Inc. (NYSE:DVA)’s competitive edge stems from being the major provider of kidney dialysis services across the United States, managing 2,675 locations for outpatient dialysis and an additional 367 sites in 11 different nations. Its consistent approach to business aligns well with Warren Buffett’s investment strategies.

After accruing most of the growth in the US, DaVita Inc. (NYSE:DVA) is expected to grow its global presence further by making strategic acquisitions and aiming to become the leading provider of dialysis services in Latin America.

The company was on a roll in the second quarter, with dialysis treatment increasing 1.1% to $7.265 million. The dialysis provider generated $3.187 billion in revenues and a net income of $223 million or $2.59 a share. It exited the quarter in a solid financial position with $1 billion in free cash flow. The stock is currently trading at a discount with a price-to-earnings multiple of 14.

Insider Monkey reviewed 912 hedge fund portfolios for their Q2 2024 shareholdings and identified 34 investors in DaVita Inc. (NYSE:DVA). The largest shareholder was Warren Buffett’s Berkshire Hathaway, with a $5 billion investment.

Here’s what Ariel Global Fund mentioned about DaVita Inc. (NYSE:DVA) in its Q1 2024 investor letter:

“Leading provider of dialysis services, DaVita Inc. (NYSE:DVA) outperformed during the period following a top- and bottom-line earnings beat. DaVita is benefitting from cost saving initiatives, early signs of a normalization in patient growth trends on par with pre-pandemic levels, improved leverage and an aggressive share buyback program. The company also recently announced an expansion of its international operations in Latin America, presenting an attractive long-term growth opportunity. Furthermore, management provided a 2024 financial outlook which is well above consensus and anticipates favorable growth. In our view, we believe the market misunderstands the long-term clinical impact of glucagon-like-peptide-1 (GLP-1s) on dialysis and as such, DaVita currently trades at a significant discount relative to our estimate of its intrinsic value.”