DaVita Inc (DVA)

DaVita Inc (NYSE: DVA) may not be a household name, but its business is one of the stickiest models in the entire US healthcare sector. DaVita operates dialysis centers for patients with End-Stage Renal Disease (ESRD) - patients whose kidneys have failed and who must undergo dialysis roughly 3 times a week, for life, unless they receive a kidney transplant. Picture a business model where the customer doesn't just repeat, but almost cannot stop - that's why dialysis is considered one of the most defensive, recurring-revenue segments in all of healthcare.

Together with its main rival, Fresenius Medical Care, DaVita controls the vast majority of the US outpatient dialysis market - a duopoly structure that's rare in an industry this large. That position gives DaVita reasonable pricing power, especially on commercially-insured patients, even though the majority of its patients are paid for through Medicare.

Why Has the Stock Jumped 105% This Year?

DVA's 2026 story centers on one major narrative shift: GLP-1. Investors had previously worried that drugs like Ozempic and Wegovy (used to manage diabetes and obesity) would slow the progression of chronic kidney disease (CKD), shrinking the future pipeline of new patients who eventually need dialysis - a long-term threat to DaVita's business model. But clinical data from late 2025 revealed something few expected: GLP-1s were found to reduce dialysis-patient mortality by roughly 17% - meaning patients already on dialysis are now living LONGER, and mathematically generating MORE lifetime treatments each. The narrative flipped from “threat” to “tailwind”, becoming one of the key drivers behind DVA's more-than-100% share price gain in 2026.

Berkshire Hathaway - The Largest Shareholder

Warren Buffett/Berkshire Hathaway owns roughly 43.9% of DaVita - one of the largest single holdings in Berkshire's portfolio by ownership percentage. There's a standing agreement under which DaVita buys back shares from Berkshire periodically (mechanically) to keep Berkshire's stake below ~45% - this is NOT a reflection of Berkshire's view on the stock, purely a contractual structure. Even so, every such sale tends to get misread by the media as “Buffett is selling DaVita”.

Massive Buybacks - The Capital Return Engine

DaVita has never paid a dividend. Instead, almost 100% of capital returned to shareholders comes through extremely aggressive share buybacks - shares outstanding have shrunk roughly 39.5% over 5 years. This is one of the most aggressive buyback programs in the S&P 500.

Shariah Compliance Status

Based on our database, DVA's status is NON-COMPLIANT. This is primarily due to the company's high debt level relative to its market value (roughly $10.7 billion in debt versus a ~$15 billion market cap), which exceeds the typical debt screening threshold (~33%) used in Shariah screening. Shariah-conscious investors should avoid this stock entirely or consult their own Shariah advisor.

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