Nu .(US:NU) The Motley Foolยท2025-05-20 09:00Core 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]