Core Insights - The company initiated a position in Nu Holdings (Nubank) in early 2024, believing it was reasonably priced for investment [1] - The focus is on businesses with strong cash generation and competitive advantages, aiming for at least 15% annualized returns [1] - The company has achieved an annualized time-weighted return of about 16% over the past three years and plans to continue improving this performance [1] Investment Strategy - The investment strategy includes seeking companies that are deeply discounted from their asset base, provided they are highly marketable [1] - The company is open to investing in takeover targets, as long as the underlying business remains strong [1]

Although Warren Buffett is a justifiably celebrated and successful investor, not all of his company's holdings have soared in popularity recently. Case in point: Brazil-based fintech Nu Holdings (NU 0.48%), which according to data compiled by S&P Global Market Intelligence suffered a 13% decline in share price over this just-completed trading week. This occurred on news of a fresh asset buy and an analyst's price target cut.A modest but impactful analyst moveOf the two news items, that cut was the more impa ...

Nu Holdings Ltd. (NU) has delivered impressive performance this year. Its stock has surged 41%, significantly outperforming the industry‘s growth of 10%.However, the stock has faced a recent downturn, declining 21% over the past three months, indicating an ongoing correction. In comparison, its peers have shown varied results. Banco Santander (Brasil) S.A. (BSBR) dropped 27%, while SoFi Technologies (SOFI) soared with a remarkable 103% gain during the same period.Image Source: Zacks Investment ResearchThis ...

Editor's note: Seeking Alpha is proud to welcome Alexander Ball as a new contributing analyst. You can become one too! Share your best investment idea by submitting your article for review to our editors. Get published, earn money, and unlock exclusive SA Premium access.Hi my name is Alex and I like investing in stocks. I will always be honest and upfront about my position sizing. I like researching stocks and investing.Analyst’s Disclosure: I/we have a beneficial long position in the shares of NU either th ...

This dynamic stock combines modern digital banking with an emerging market with seismic growth potential.Emerging markets might be the best place to find lucrative investment ideas in today's banking industry. Consider that Latin America has a population of 665 million, roughly double that of the United States. However, unlike in the U.S., large segments of the population still lack basic modern-day privileges, like essential banking services.As the Latin American economy matures, Nu Holdings (NU -0.42%) fi ...

A long-term bet on Nu Holdings means a bet on a specific geographical region.The largest neobank in the Western world is a company you've likely never heard of. Nu Holdings (NU -0.42%) is the parent company of Nu Bank, a digital bank taking Latin America by storm. Starting in Brazil, the bank and financial services platform has disrupted the stodgy legacy institutions and is now closing in on 100 million active customers.This growth stock could be an exciting fintech play on the growth of the Latin American ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Nu Holdings. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Investors usually look to bank stocks for stability and passive income. They're rarely the growth portion of an equity portfolio, but they can keep your holdings on solid ground when the economy or market is shaky.But today, there's a new cadre of bank stocks that are all-digital and fast-growing. These fintech companies have tremendous opportunity as the future of the industry, and Nu Holdings (NU -0.42%) is leading the way. If you have $1,000 to invest, Nu could be the ultimate bank stock to buy right now ...

Company Overview - Nu Holdings is the parent company of Brazil-based Nubank, offering a wide range of financial services including credit cards, checking and savings accounts, investing, crypto, personal loans, and cellphone plans [2] - The company has expanded its services across Brazil, Colombia, and Mexico, with nearly 110 million customers at the end of Q3 2023, a 23% increase year-over-year [3] - Nu Holdings has the largest number of active credit customers in Brazil, with over half of adults in the country having a Nubank account and 84% monthly active customer rate in Q3 [4] Market Expansion - Nu Holdings has 9 million customers in Mexico and 2 million in Colombia, with customer growth accelerating by nearly 16% in Q3 [5] - The company is already Mexico's leading digital financial platform [5] Financial Performance - Nu Holdings turned a net profit in 2021 and continues to expand its margins [6] - Revenue rose 58% in Q3 to $2.9 billion, with net income jumping 82% to $553 million [7] - Gross profit margins increased to 46% in Q3, up from 43% in the year-ago quarter [7] Valuation - Nu Holdings' stock has a price-to-earnings ratio of 33, compared to the S&P 500's P/E ratio of 30.9 and SoFi Technologies' earnings multiple of 133 [8]

Nu Holdings (NU -2.20%) is expanding quickly in its home market while expanding into new territories.*Stock prices used were the afternoon prices of Dec. 9, 2024. The video was published on Dec. 11, 2024. ...