Group 1 - Nu Holdings, widely known as Nubank, is valued above Itaú Unibanco, South America's largest private bank, indicating its significant market position [1] - Nubank is recognized as the most successful Neobank globally, achieving remarkable growth in less than a decade [1] Group 2 - The article highlights the author's background as a Latin-American fundamentalist investor with experience in tech, retail, and banking sectors [1]

Group 1 - Nu Holdings (NYSE: NU) was initially picked at a price of $4.47 and is considered one of the best companies by the author [1] - The focus of Potential Multibaggers is on stocks that have the potential to increase tenfold or more over the next decade [1] Group 2 - Potential Multibaggers targets long-term investors seeking significant returns and emphasizes the importance of patience and resilience during market volatility [2] - The analysis provided by Potential Multibaggers is centered on long-term fundamentals rather than short-term market fluctuations [2]

Core Insights - Nubank, headquartered in São Paulo, Brazil, is the largest fintech bank in Latin America with approximately 118.6 million customers, primarily in Brazil [1] Company Overview - Nubank is best known for its digital banking services, which have contributed to its significant customer base in the region [1] Market Position - The company has established itself as a leading player in the fintech sector within Latin America, indicating strong growth potential in the digital banking space [1]

Nu Holdings (NYSE: NU ) reported decent earnings for its first fiscal quarter last week amid strong growth momentum in the Fintech's core markets in Brazil, Mexico and Colombia. In the first-quarter, Nu Holdings reported strong customer acquisition momentum and the FintechAnalyst’s Disclosure: I/we have a beneficial long position in the shares of NU, SOFI, XYZ either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving comp ...

Core Viewpoint - Nu Holdings Ltd. (NU) has experienced a significant stock decline of nearly 16% over the past six months, contrasting sharply with the 23% growth in the industry, raising concerns about its near-term trajectory [1][3]. Company Performance - NU's stock performance is notably weaker compared to peers, with SoFi Technologies (SOFI) also down 19%, while Banco Santander (Brasil) S.A. (BSBR) has gained over 17% [2][3]. - The company added 4.3 million customers in Q1 2025, bringing its total global customer count to 118.6 million, indicating strong growth driven by its digital-first strategy [5]. - NU reported a 19% year-over-year revenue increase in Q1, showcasing robust revenue growth [8]. Financial Metrics - NU's trailing 12-month Return on Equity (ROE) stands at 30.8%, significantly higher than the industry average of 11.7% [9]. - The trailing 12-month Return on Invested Capital (ROIC) is 14.5%, well above the industry average of 3.1% [10]. - NU's stock is currently trading at 17.77 times forward earnings, more than double the sector's average of 8.58 times, indicating a high valuation premium [12]. Analyst Sentiment - Over the past 60 days, analyst estimates for NU have been revised downward, with two analysts downgrading projections for 2025 and one for 2026, reflecting growing concerns about mid-term growth [13][15]. - There have been no upward revisions during this period, suggesting a lack of renewed optimism among analysts [15]. Macroeconomic Environment - Brazil is facing an inflation rate of around 5%, higher than that of the U.S., and the currency has weakened against the U.S. dollar, posing risks to NU's profitability [16]. - Inflationary volatility is a recurring issue in several Latin American markets where NU operates, impacting investor sentiment [16]. Investment Recommendation - Given the stock's decline amid industry gains, macroeconomic headwinds, and high valuation, it may be prudent for investors to consider selling NU stock and reassessing at a more favorable price [17].

Core Insights - Warren Buffett's retirement announcement at Berkshire Hathaway marks a historic moment, drawing significant attention to his investment strategies and trades [1] - Berkshire Hathaway has sold its remaining shares in Nu Holdings, a digital bank in Brazil, which has shown impressive market performance [3][13] Company Overview - Nu Holdings operates as a fintech company in Brazil, Mexico, and Colombia, boasting 104.6 million members in Brazil, representing 59% of the adult population, with substantial growth potential in Mexico and Colombia [4] - The company has seen a 70% year-over-year increase in its customer base in Mexico, where it currently serves 12% of the population [4] Financial Performance - Nu's revenue per customer is expected to grow from approximately $5 to over $25 as customer engagement increases, while legacy banks average $43 in revenue per active customer [7] - The company reported a 74% year-over-year increase in net income and a 40% rise in revenue in the first quarter [7] Operational Efficiency - Nu is leveraging technology to reduce costs, with a declining cost to serve per active customer as it scales operations [8] - The company is cash-rich, utilizing deposits to fund loans, which drives high profits through interest earned on its credit portfolio [12] Market Expansion - Nu is laying the groundwork for international expansion while focusing on its current markets, which have significant growth opportunities [9] - The company is positioned to benefit from a shift in digital financial services and is currently insulated from U.S. tariff threats [14] Investment Context - Berkshire Hathaway's investment in Nu was made during a pre-IPO funding round, and the decision to sell may not have been directly influenced by Buffett [10] - Despite the sale of Nu shares, the company continues to show potential for long-term shareholder rewards [14]

Core Viewpoint - Nu Holdings has shown impressive market performance, rising nearly 30% this year, while the S&P 500 remains relatively unchanged, indicating a shift in investor sentiment towards its international status as a safer investment amid ongoing tariff discussions [1] Company Performance - In Q1 2025, Nu Holdings reported a 40% year-over-year revenue increase to $3.1 billion (currency neutral) and a 74% rise in net income to $557.2 million, driven by new customer acquisitions and cross-selling of products [5] - The company added 4.3 million customers, totaling 118.6 million, marking a 19% year-over-year increase [5] - Deposits surged by 48% to $31.6 billion, while the interest-earning portfolio grew by 62% to $13.8 billion [5] Customer Engagement - Most customers utilize Nu as their primary banking service, allowing the company to leverage data for expansion and product development [6] - The cost to serve has decreased, and the average revenue per active customer (ARPAC) has increased, particularly as customer tenure on the platform grows, leading to better monetization [6] Market Expansion - In Brazil, Nu has captured 59% of the adult population, with a 14% year-over-year increase in membership, indicating ongoing growth potential [8] - In Mexico, membership rose by 70% year-over-year to 11 million, with deposits more than doubling to over $5 billion, and revenue nearly doubling to $245 million, although it currently serves only 12% of the adult population [9] - The company has a small presence in Colombia, reaching 3 million members, or 8% of its target market [10] Valuation and Investment Potential - Nu Holdings is considered a growth stock with a forward one-year price-to-earnings (P/E) ratio of 17, which is viewed as attractive for a growth company, suggesting potential for price expansion as it continues to grow and enter new markets [12]

For the past few years, I had been defending the bullish thesis on Nu Holdings ( NU ) that it was a stock to own rather than trade, based on its rapid expansion of clients, veryAs a researcher and operations manager at DM Martins Research, I leverage my deep understanding of global markets to provide valuable and actionable insights. Previously, I contributed to TheStreet and currently write for platforms such as TipRanks and GuruFocus. At Seeking Alpha, my focus is on delivering in-depth analysis of foreig ...

Core Insights - Berkshire Hathaway made significant adjustments to its bank stock holdings in the first quarter of 2025, while maintaining a stable position in Apple [1][2] - The company completely sold its 14.63 million shares of Citigroup and reduced its stake in Bank of America by over 7%, amounting to a reduction of 48.66 million shares [1] - Despite these reductions, Berkshire still holds over 631.5 million shares of Bank of America as of the end of the first quarter [1] - The company also fully divested its 40 million shares in fintech company NuHoldings and reduced its stake in First Capital Financial by approximately 4% [1] - On the other hand, Berkshire significantly increased its investment in Constellation Brands by 113.5%, acquiring 6.38 million shares, bringing the total to 12 million shares [1] - Additionally, the company added 760,000 shares of Occidental Petroleum and doubled its stake in PoolCorp by acquiring 860,000 shares [1] - Berkshire did not initiate any new positions in the first quarter [1] Investment Strategy - Berkshire's flagship holding, Apple, remained unchanged at 300 million shares, with a market value of $66.6 billion, representing about 25% of its total stock portfolio [1] - The company reduced its investment in Liberty Formula One by about half, down to 3.5 million shares [2] - Overall, Berkshire's investment activity in the first quarter was relatively cautious, with minimal stock trading changes [2] - The company currently holds cash and U.S. Treasury securities totaling $333 billion, indicating a strong preference for cash in the current market environment [2]

Group 1 - Berkshire Hathaway has more than doubled its stake in Constellation Brands, increasing its holdings from 5.6 million shares to approximately 12 million shares, representing a 6.6% ownership in the company [1][2][4] - The company has sold its holdings in Citigroup and Brazilian fintech lender Nu Holdings as part of its portfolio adjustments [1][2] - The quarterly disclosures do not specify whether individual trades were made by Warren Buffett, portfolio managers Todd Combs and Ted Weschler, or future CEO Greg Abel [3]