Warren Buffett Buys DaVita, But You Should Not: Adami
By: On Tuesday after the bell the Fast Money pros took a hard look at DaVita after the latest 13F filing from famed investor Warren Buffett revealed the Oracle of Omaha had established a new position.
Buffett may be bullish, but Fast trader Guy Adami is not - at least not at these levels.
Although he thinks the stock will be the object of a Buffett bounce, he cautions investors not to chase an upcoming rally. DaVita has rallied a lot already.
“I’d wait on this one,” he says. If the stock does bounce, valuations will be a little stretched. c
And if must play DaVita, Adami says wait until the company reports earnings, then make your trading thesis.
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In case you’re wondering what the traders found noteworthy in the Buffett 13F filing:
Warren Buffett: New Positions In:
DaVita (DVA)
Liberty Media (LMCA)
Warren Buffett: Added to Positions In:
Coke (KO)
DirecTV (DTV)
CVS (CVS)
General Dynamics (GD)
Wells Fargo 9WFC)
Visa (V)
Warren Buffett: Cut but Did Not Eliminate Positions In:
Johnson and Johnson (JNJ)
Kraft (KFT)
Warren Buffett: Sold Out Of:
Exxon Mobil (XOM)
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Trader disclosure: On February 14, 2012 , the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long VRTS; Terranova is long LQD; Terranova is long SWN; Terranova is long CSCO; Terranova is long TBT; Terranova is long SBUX; Terranova is long FXE; Terranova is long OXY; Terranova is long MCD; Terranova is long JOY; Terranova is long AXP; Terranova is long EMC; Terranova is long IBM; Terranova is long UNG puts; Terranova is short AAPL put spreads; Najarian is long VIX call spreads; Najarian is long RVBD calls; Finerman is long AAPL; Finerman is long BAC; Finerman is long JPM; Finerman is short IBM calls; Finerman is long HPQ; Adami owns C; Adami owns GS; Adami owns MSFT; Adami owns AGU; Adami owns NUE; Adami owns INTC; Adami owns BTU; Scaramucci is long AAPL; Scaramucci is long BAC; Scaramucci is long C; Scaramucci is long GS
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