Buffett Leaves Abel with a $320 Billion Portfolio Challenge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: Fool
- Massive Portfolio: Upon stepping down at the end of 2025, Buffett left Berkshire Hathaway with a marketable equity portfolio valued at approximately $320 billion and $354 billion in cash reserves, presenting new CEO Abel with significant management challenges as investors await his strategic adjustments.
- First Stock Sale: Under Abel's leadership, Berkshire disclosed the sale of 1.7 million shares of DaVita (DVA), which, while executed under a pre-existing agreement, raised concerns among investors about potential reductions in holdings, thereby impacting market confidence.
- Strong DaVita Performance: DaVita's recent earnings report revealed a 10% revenue increase and a 52% surge in adjusted earnings per share (EPS), and despite ongoing concerns regarding flu season and GLP-1 drug impacts, management's optimistic forecast of 45% EPS growth for 2026 indicates a positive outlook.
- Potential Kraft Heinz Sale: Abel appears poised to sell Berkshire's stake in Kraft Heinz (KHC), despite Buffett's previous comments on the merger's shortcomings; Abel's disapproval of the company's split plan may present an opportunity for Berkshire to divest its shares.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy DVA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on DVA
Wall Street analysts forecast DVA stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for DVA is 136.50 USD with a low forecast of 130.00 USD and a high forecast of 143.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
0 Buy
3 Hold
1 Sell
Hold
Current: 149.220
Low
130.00
Averages
136.50
High
143.00
Current: 149.220
Low
130.00
Averages
136.50
High
143.00
About DVA
DaVita Inc. is a healthcare provider focused on transforming care delivery to improve the quality of life for patients globally. The Company is a provider of kidney care services in the United States. Its United States dialysis (U.S. dialysis) and related lab services business treats patients with chronic kidney failure and end-stage kidney disease (ESKD). The Company’s robust platform delivers kidney care services and includes established nephrology and payor relationships. The Company’s international operations provide dialysis and administrative services to a total of outpatient dialysis centers. The Company’s U.S. integrated kidney care (IKC) business provides integrated care and disease management services to patients in risk-based integrated care arrangements and to additional patients in other integrated care arrangements across the United States. It also maintains a few other ancillary services and investments outside its U.S. dialysis, U.S. IKC, or international operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Buffett Leaves Abel with a $320 Billion Portfolio Challenge
- Massive Portfolio: Upon stepping down at the end of 2025, Buffett left Berkshire Hathaway with a marketable equity portfolio valued at approximately $320 billion and $354 billion in cash reserves, presenting new CEO Abel with significant management challenges as investors await his strategic adjustments.
- First Stock Sale: Under Abel's leadership, Berkshire disclosed the sale of 1.7 million shares of DaVita (DVA), which, while executed under a pre-existing agreement, raised concerns among investors about potential reductions in holdings, thereby impacting market confidence.
- Strong DaVita Performance: DaVita's recent earnings report revealed a 10% revenue increase and a 52% surge in adjusted earnings per share (EPS), and despite ongoing concerns regarding flu season and GLP-1 drug impacts, management's optimistic forecast of 45% EPS growth for 2026 indicates a positive outlook.
- Potential Kraft Heinz Sale: Abel appears poised to sell Berkshire's stake in Kraft Heinz (KHC), despite Buffett's previous comments on the merger's shortcomings; Abel's disapproval of the company's split plan may present an opportunity for Berkshire to divest its shares.
See More
Warren Buffett Steps Down as CEO of Berkshire Hathaway
- Leadership Change: Warren Buffett's resignation as CEO of Berkshire Hathaway after over 65 years marks a significant turning point in the company's history, potentially impacting investor confidence and future strategic direction.
- Stock Sales Overview: Berkshire's recent stock sales totaled $12.5 billion, involving six stocks including Apple and Bank of America, indicating Buffett's cautious stance on high-valuation stocks, which may affect the company's short-term earnings performance.
- Investment Strategy Shift: In the third quarter, Berkshire allocated nearly $6.4 billion to stock purchases while adding $9.9 billion to short-term U.S. Treasury Bills, reflecting Buffett's concerns about market valuations and emphasis on liquidity, which could influence future investment decisions.
- Increased Cash Allocation: Currently, cash and Treasury Bills make up about one-third of Berkshire's total value, demonstrating Buffett's cautious approach to the current market environment, which may pose greater challenges for the company in finding viable investment opportunities.
See More
Buffett Sells Stocks for 12 Consecutive Quarters
- Selling Trend: Buffett has been a net seller of stocks for 12 consecutive quarters, with the latest round of sales totaling $12.5 billion, indicating his concerns about market valuations that could impact Berkshire Hathaway's portfolio performance.
- High-Yield Investments: Despite selling, Berkshire invested nearly $6.4 billion in equities during Q3, with $9.9 billion allocated to short-term U.S. Treasury Bills, reflecting a focus on liquidity and safety that may influence future investment strategies.
- Apple and Bank of America Reductions: Buffett has been trimming his stakes in Apple and Bank of America due to their high valuations, as Apple's stock has surged in recent years and Bank of America's price approached twice its tangible book value, prompting a reassessment of their investment worth.
- Cash Position Maintenance: Berkshire now holds cash and Treasury Bills amounting to one-third of its total value, demonstrating Buffett's cautious stance on the current market, which may affect his future investment decisions and market engagement.
See More
DaVita (DVA) Q2 2025 Earnings Call Transcript
See More
DaVita (DVA) Q1 2025 Earnings Call Transcript
See More
ezCater Appoints New Chief Operations Officer
- Executive Appointment: ezCater announced that Shaila Parikh will join as Chief Operations Officer on February 4, 2026, bringing over 20 years of operational and strategic experience to enhance customer service and supply chain efficiency, thereby strengthening the company's competitive position in the U.S. market.
- Leadership Experience: Parikh's previous roles at high-growth companies like Papa, Lyft, and DaVita Kidney Care will enable her to help ezCater reduce operational costs while improving customer experience, further driving business growth for enterprise clients and restaurant partners.
- Market Demand Response: As the leading food tech platform in the U.S., ezCater meets workplace food needs with flexible solutions, and Parikh's addition will help optimize operations and enhance service quality in a complex market environment.
- Strategic Vision: Parikh expressed her excitement to modernize operations to deliver greater value to customers and partners, further solidifying ezCater's leadership in the corporate catering market and driving sustainable growth for the future.
See More
Buffett Leaves Abel with a $320 Billion Portfolio Challenge
- Massive Portfolio: Upon stepping down at the end of 2025, Buffett left Berkshire Hathaway with a marketable equity portfolio valued at approximately $320 billion and $354 billion in cash reserves, presenting new CEO Abel with significant management challenges as investors await his strategic adjustments.
- First Stock Sale: Under Abel's leadership, Berkshire disclosed the sale of 1.7 million shares of DaVita (DVA), which, while executed under a pre-existing agreement, raised concerns among investors about potential reductions in holdings, thereby impacting market confidence.
- Strong DaVita Performance: DaVita's recent earnings report revealed a 10% revenue increase and a 52% surge in adjusted earnings per share (EPS), and despite ongoing concerns regarding flu season and GLP-1 drug impacts, management's optimistic forecast of 45% EPS growth for 2026 indicates a positive outlook.
- Potential Kraft Heinz Sale: Abel appears poised to sell Berkshire's stake in Kraft Heinz (KHC), despite Buffett's previous comments on the merger's shortcomings; Abel's disapproval of the company's split plan may present an opportunity for Berkshire to divest its shares.
See More
Warren Buffett Steps Down as CEO of Berkshire Hathaway
- Leadership Change: Warren Buffett's resignation as CEO of Berkshire Hathaway after over 65 years marks a significant turning point in the company's history, potentially impacting investor confidence and future strategic direction.
- Stock Sales Overview: Berkshire's recent stock sales totaled $12.5 billion, involving six stocks including Apple and Bank of America, indicating Buffett's cautious stance on high-valuation stocks, which may affect the company's short-term earnings performance.
- Investment Strategy Shift: In the third quarter, Berkshire allocated nearly $6.4 billion to stock purchases while adding $9.9 billion to short-term U.S. Treasury Bills, reflecting Buffett's concerns about market valuations and emphasis on liquidity, which could influence future investment decisions.
- Increased Cash Allocation: Currently, cash and Treasury Bills make up about one-third of Berkshire's total value, demonstrating Buffett's cautious approach to the current market environment, which may pose greater challenges for the company in finding viable investment opportunities.
See More
Buffett Sells Stocks for 12 Consecutive Quarters
- Selling Trend: Buffett has been a net seller of stocks for 12 consecutive quarters, with the latest round of sales totaling $12.5 billion, indicating his concerns about market valuations that could impact Berkshire Hathaway's portfolio performance.
- High-Yield Investments: Despite selling, Berkshire invested nearly $6.4 billion in equities during Q3, with $9.9 billion allocated to short-term U.S. Treasury Bills, reflecting a focus on liquidity and safety that may influence future investment strategies.
- Apple and Bank of America Reductions: Buffett has been trimming his stakes in Apple and Bank of America due to their high valuations, as Apple's stock has surged in recent years and Bank of America's price approached twice its tangible book value, prompting a reassessment of their investment worth.
- Cash Position Maintenance: Berkshire now holds cash and Treasury Bills amounting to one-third of its total value, demonstrating Buffett's cautious stance on the current market, which may affect his future investment decisions and market engagement.
See More
DaVita (DVA) Q2 2025 Earnings Call Transcript
See More
DaVita (DVA) Q1 2025 Earnings Call Transcript
See More
ezCater Appoints New Chief Operations Officer
- Executive Appointment: ezCater announced that Shaila Parikh will join as Chief Operations Officer on February 4, 2026, bringing over 20 years of operational and strategic experience to enhance customer service and supply chain efficiency, thereby strengthening the company's competitive position in the U.S. market.
- Leadership Experience: Parikh's previous roles at high-growth companies like Papa, Lyft, and DaVita Kidney Care will enable her to help ezCater reduce operational costs while improving customer experience, further driving business growth for enterprise clients and restaurant partners.
- Market Demand Response: As the leading food tech platform in the U.S., ezCater meets workplace food needs with flexible solutions, and Parikh's addition will help optimize operations and enhance service quality in a complex market environment.
- Strategic Vision: Parikh expressed her excitement to modernize operations to deliver greater value to customers and partners, further solidifying ezCater's leadership in the corporate catering market and driving sustainable growth for the future.
See More
