By Rebecca Lipman.
There are several good pairings out there: beer and football, Oprah and Dr Phil, William and Kate, and the latest: sugar and dialysis.
That last one represents an announcement from Warren Buffett – billionaire investor who famously has a sweet tooth and an even sweeter portfolio – that hedge fund manager Ted Weschler will be joining Berkshire Hathaway to help manage equities. Ted Weschler owns a big stake in DaVita (DVA), one of two leading dialysis centre operators.
Buffett’s portfolio includes Coca-Cola (KO) and Kraft (KFT), both sugary contributors to the world’s growing battle with obesity. Obesity is a key cause of diabetes, which can lead to kidney failure and in turn a need for dialysis to survive.
According to articles investigating Weschler, he owns no overlapping stocks with Buffett. And while this comically “gruesome synergy,” as Y Charts puts it, can hardly be called intentional, it certainly seems to be a financially rational pairing.
In some ways, the two stocks complete the more gruesome picture of consumption from an investment standpoint.
“One need only peer into fellow shoppers’ carts to see soda pop and sweets being consumed in large quantities. To see the unpleasant result of that consumption, drive over to a strip mall that is home to a dialysis clinic someday, and watch the comings and going; the machines are always busy,” says Jeff Bailey of Y Charts.
Interested in exploring this bitter-sweet investment synergy?
Use Kapitall’s Turbo Chart to compare KO and DVA’s performance against the S&P500. As the chart shows, DVA has outperformed the S&P 500 for much of the year while KO has had a mixed performance.
Press play on the Compar-O-Matic to compare the average analyst recommendations for DVA relative to its industry competitors.
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