Most of you probably have never heard of Nu Holdings ($NU) and not surprised that you haven’t. It’s a bank headquartered in Brazil. Before you dismiss it based on its location, you should consider one fact. Berkshire Hathaway is one of their biggest shareholders. Did this get your attention? And Cathie Wood, too (3.4 million shares)
Let’s continue. Why did we even bothered to take a look at this company?
- Berkshire Hathaway made a $1 billion investment in $NU.
- $NU operate most in Latin America where there are 122 million “unbanked” people. That’s a massive upside.
- Massive growth: revenue went from $359.5 million in 2019 to $2.97 billion in 2022. Yes, that’s not a typo.
- Guess which stock performed the best within Berkshire portfolio? You got it, $NU.
- Unlike most fintech, they are profitable. EPS of 0.08 and revenue beat of $2.4 billion vs. $2.34 billion in the latest quarter.
- How good is their banking services and platform? 46% of Brazil’s adult population has a Nubank account. And they started 9 years ago. Yes, 9 years ago.
- Expanded into Mexico (3% market penetration after 3 years) and Colombia (2% market penetration after a year) and the growth hasn’t even started.
The list can go on and on. So after doing some extensive research, we decided to take a hefty bet scooping up $NU shares and using our proprietary trading, we have been accumulating even more shares in $NU.
You must be thinking…how high can it go and is it too late to get in? Let’s answer the first question. How high can it go? We believe it can go $47+ in several years. You might say that it’s insane for this company to be valued at $200+ billion but given the growth and profitability and how they are taking market share from traditional banks, it will be feasible. Is it late? Absolutely not. It just started and the stock has only gone up 50% since we last tweeted in July. And how many times has $NU made ATH last several weeks? Everyday!
Another good earnings reports and if Berkshire Hathaway increase their stake, you know this is going to skyrocket in no time. That’s why we are long as the show has just started and it’s going to get better.
Again, don’t rely on our PoV. Do your own DD before making any investment decisions.