3 Stocks To Buy From Warren Buffet's Portfolio - DaVita

1-DaVita

DaVita Inc. is a company that serves 206,900 patients with 2,753 outpatient dialysis centers in the United States, and also provides dialysis services to 28,700 patients with 259 outpatient dialysis centers in 10 countries outside the USA. The company also benefits from the fact that Medicare (US national health insurance) accepts any American with end-stage kidney disease who needs dialysis, regardless of age. This provides some insurance coverage for every American. According to HealthCare appraisers, DaVita controls about 37 percent of this market. However, this market share does not isolate the company from all threats. In states such as California, parliament has set limits on third-party reimbursement rates for dialysis clinics in the context of the bill. Fortunately for DaVita, the courts have so far blocked this practice from taking effect. However, such initiatives can limit revenues, especially in large states such as California. In addition, holistic (holistic, alternative medicine) approaches can challenge the traditional dialysis treatments DaVita specializes in. In addition, companies such as Somatus are trying to prevent the need for dialysis. While such advances are helping kidney patients, they threaten DaVita's revenue streams. In addition, as the COVID-19 outbreak made its clinics more dangerous, DaVita had to make extra efforts to separate positive patients, rearrange them and provide dialysis services at home. Despite these difficulties, revenue grew by just over 1 percent, while net income fell roughly 3 percent.

Despite the low income, DaVita shares have gained nearly 50 percent in the last 12 months!

In the same period, it surpassed its rival Fresenius, which rose by about 15 percent. This increase increased the Price/Earnings ratio from 14 to about 17 in the period a year ago. As long as DaVita continues its business and outperforms Fresenius, it will continue to serve Buffett and its investors.   3 Stocks To Buy From Warren Buffet's Portfolio - DaVita Source: https://www.fool.com/ You may also be interested in:

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