Buffett Completely Exits Nu Holdings Investment
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: NASDAQ.COM
- Buffett's Exit: Warren Buffett completely sold his stake in Nu Holdings at the end of 2024, despite the company becoming Brazil's largest financial institution, indicating a potential missed opportunity for Berkshire Hathaway to capitalize on future gains in a rapidly growing market.
- Strong Market Performance: Following Berkshire's divestment, Nu's stock outperformed all other Buffett holdings in 2025, already up 11% at the start of the year, highlighting its robust growth potential in the competitive fintech landscape.
- User Base Expansion: Over the past decade, Nu Holdings has rapidly grown to become the largest financial institution in Brazil, with 61% of the adult population on its platform, and penetration rates of 14% in Mexico and 10% in Colombia, showcasing its significant influence in the Latin American market.
- New Market Plans: Nu is set to open offices in the U.S., including Miami, Palo Alto, and Washington, D.C., further expanding its market share and expected to drive future growth, although it carries a higher risk profile compared to traditional Buffett investments.
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Analyst Views on NU
Wall Street analysts forecast NU stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NU is 18.80 USD with a low forecast of 16.00 USD and a high forecast of 22.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
9 Analyst Rating
7 Buy
2 Hold
0 Sell
Strong Buy
Current: 18.760
Low
16.00
Averages
18.80
High
22.00
Current: 18.760
Low
16.00
Averages
18.80
High
22.00
About NU
Nu Holdings Ltd is a Brazil-based holding company, which engages in the provision of digital banking services. The Company offers its customers products across the five financial seasons: spending, saving, investing, borrowing, and protecting. Its spending solutions are designed to help customers pay for goods and services in their everyday lives with a customized credit line or instantly through a mobile phone, while collecting loyalty points and rewards on applicable transactions. Its savings solutions are designed to help customers deposit, manage, and save their money in interest-earning accounts with complementary debit cards. Its investing solutions are designed to help customers invest their money in investment products and services. Its borrowing solutions are designed to provide customers with unsecured loans that are easy to receive, manage, and pay back. Its protecting solutions are designed to help customers secure life insurance and funeral benefits.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nu Holdings Poised for Strong 2026 Performance
- Significant Growth: Nu Holdings reported a 42% year-over-year revenue increase in Q3 2025, reaching $4.2 billion, indicating strong performance in the financial services sector, with a projected 31% revenue growth in 2026 further solidifying its market position.
- Market Share Expansion: With 110 million customers in Brazil, representing over 60% of the adult population, and an additional 13 million in Mexico and 4 million in Colombia, Nu demonstrates extensive coverage and growth potential in the Latin American market.
- Profitability Improvement: The company achieved a net profit margin of 18.8% in Q3 2025, a significant increase from 0.6% in Q3 2022, showcasing the effectiveness of its low-cost operating model, which is expected to drive further profit growth.
- Reasonable Valuation: As of January 29, Nu's forward price-to-earnings ratio stands at 23.4, which is considered reasonable given its strong growth prospects, attracting investor interest and likely to continue driving stock price appreciation.
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Berkshire Hathaway's Performance Under Buffett's Legacy
- Digital Banking Surge: Nu Holdings has rapidly expanded in Brazil, Mexico, and Colombia, becoming the largest financial institution in Brazil with 61% of the adult population as customers, showcasing its strong appeal and growth potential in the Latin American market.
- Market Expansion Plans: Nu is set to open new offices in the U.S., including Miami, Palo Alto, and Washington, D.C., indicating its strategic focus on international markets and future growth, which is expected to further drive user acquisition.
- Investment Return Comparison: Although Berkshire Hathaway completely exited Nu Holdings by the end of 2024, the company's performance in 2025 has outpaced other top Berkshire stocks, highlighting potential missteps in investment decisions and Nu's robust market performance.
- Sustained Growth Expectations: Nu continues to rapidly add new customers in the Brazilian market, with expectations for higher growth in the coming years, reflecting its competitive advantages and market opportunities in the digital banking sector.
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