1 Cathie Wood and Warren Buffett Stock That Could Go Parabolic in 2025

Core Viewpoint - Cathie Wood and Warren Buffett, despite their contrasting investment philosophies, both hold positions in Nu Holdings, a fintech company focused on Latin and South America, which is seen as a potential breakout opportunity by 2025 [1][3]. Company Overview - Nu Holdings is a digital financial services platform offering a range of products including checking and savings accounts, investing, and loans, primarily targeting markets in Brazil, Colombia, and Mexico [4]. - As of the end of Q3, Nu had 110 million members, reflecting a 23% year-over-year growth, with an average revenue per user (ARPU) of $11 [5]. Financial Performance - Nu's gross margin increased by 300 basis points, and net income rose by 83$553 million during the third quarter [6]. - The company's profitability has improved as it has made its customers more profitable over time [6]. Valuation Perspective - Nu's price-to-sales (P/S) ratio is competitive compared to other international fintech companies, indicating an attractive valuation relative to its growth [7]. - The P/S ratio has been declining recently, attributed to macroeconomic conditions in Latin America, particularly Brazil, though this is not seen as a reason to sell the stock [8]. Market Comparison - Nu is compared to SoFi, another fintech company that has faced challenges but has seen a resurgence as economic conditions improved [9][11]. - Concerns regarding inflation and economic conditions affecting Nu's growth are similar to those faced by SoFi, but long-term prospects remain strong due to rising user base and profitability [12][13].