Berkshire Hathaway (NYSE: BRK.A ) CEO Warren Buffetts latest
successor-in-training used to run Peninsula Capital Advisors, a hedge fund. One
of Peninsulas biggest investments, kidney dialysis center owner DaVita (NYSE:
DVA ), caught my attention. Should you invest? Like Apples (NASDAQ: AAPL ) Steve
Jobs, Buffett is a business hero who shares a common feature with the rest of
humanity he wont last forever. So Buffett has been hiring investment managers
and giving them multibillion-dollar chunks of his portfolio to see how they do.
His first was Todd Combs, and now Buffett has hired Peninsulas manager, Ted
Wechsler. Wechsler won an anonymous bid to have lunch with Buffett in 2010
topping $2.6 million, according to Fortune . Peninsula put in a pretty good
performance for its investors. Since its 2000 inception, it returned 1,236% far
better than Berkshire B stock that gained a relatively small 146%. One of
Wechslers biggest bets as of earlier this year was DaVita. But has Wechsler
already taken full advantage of the profit opportunity in its stock? Here are
three reasons to consider an investment: Low valuation. DaVita trades at a
price/earnings-to-growth ratio of 0.71 (where a PEG of 1.0 is considered fairly
valued) and a P/E of 19.2 on earnings forecast to grow 27.1% to $6.13 in 2012 .
Good earnings reports. DaVita has been able to beat analysts expectations in
No comments:
Post a Comment