Why Warren Buffett Stock Nu Holdings Dived by 13% This Week

Core Viewpoint - Nu Holdings has experienced a decline in share price due to a price target cut by an analyst and news of a new asset acquisition, despite maintaining a buy recommendation on the stock [1][3]. Group 1: Analyst Actions - Analyst Tito Labarta from Goldman Sachs reduced the price target for Nu Holdings by $2 to $17 while keeping a buy recommendation [1]. - The company's share price fell by 13% over the past trading week, influenced by the analyst's price target cut and news of an asset acquisition [3]. Group 2: Company Developments - Nu Holdings has made a $150 million investment to acquire a minority stake in Tyme Group, an international banking conglomerate, as part of its growth strategy [7]. - Berkshire Hathaway, led by Warren Buffett, still holds a significant stake in Nu Holdings, although it reduced its position by nearly 20% earlier this year [4][6]. Group 3: Market Position and Synergies - Nu Holdings operates in distinct markets, specifically South Africa and the Philippines, raising questions about the synergies with Tyme Group due to geographical separation [5]. - The company is eager to expand internationally and grow through acquisitions, indicating a proactive approach to market presence [7].