Normally, it isn't wise to go up against Berkshire Hathaway, but that is exactly what Jim Chanos is doing with his position in DaVita (NYSE: DVA). In a recent interview with Hedgeye's Keith McCullough, Jim Chanos explained why he is shorting one of the largest kidney dialysis companies in the country and a company in which Berkshire owns a significant stake. Here we will take a look at what Chanos is seeing and why he is shorting DaVita.
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DaVita's primary service is providing kidney dialysis for patients with end-stage renal disease (ESRD). "ESRD is the stage of advanced kidney impairment that requires continued dialysis treatments or a kidney transplant to sustain life...Patients suffering from ESRD generally require dialysis at least three times a week for the rest of their lives."