Here's why this Warren Buffett stock plunged 11% in a day

Core Viewpoint - DaVita Inc. experienced an 11% decline in stock price due to a weaker-than-expected earnings outlook for 2025, attributed to rising patient care costs, supply constraints, and ongoing dialysis center closures [1][3][4] Financial Performance - DaVita reported adjusted earnings per share (EPS) of $2.24 for the fourth quarter, surpassing Wall Street's forecast of $2.13, with revenue reaching $3.3 billion, also exceeding estimates [3] - The company's 2025 EPS forecast ranges from $10.20 to $11.30, which is below analyst expectations, with the midpoint falling short of the $11.24 consensus estimate [3] Operational Challenges - Rising patient care costs, supply constraints, and dialysis center closures resulted in a loss of $24.2 million in Q4 [4] - New patient growth was hindered by supply constraints in peritoneal dialysis solutions, particularly due to the temporary closure of Baxter's North Cove facility, leading to a loss of approximately 350 new patient admissions [5][6] Shareholder Activity - Berkshire Hathaway sold 203,091 shares of DaVita for $31.7 million, reducing its stake to 45% as part of a preplanned share repurchase agreement [6][7] - Despite the sale, Berkshire remains DaVita's largest shareholder, holding approximately 35.9 million shares valued at around $6.4 billion [7]