At the end of 2024, Warren Buffett’s Berkshire Hathaway fully divested its entire stake in Nu Holdings, marking a dramatic shift from earlier bullish positions. The sale of approximately 4% of the company’s outstanding shares was executed over several trading days in December, raising questions among investors about Buffett’s long-term view on Latin America’s digital banking space. This move follows a period in which Berkshire initially acquired its stake at an average cost basis near market levels, suggesting the firm saw greater opportunities elsewhere as the macroeconomic outlook for emerging-market financials grew more uncertain.

Following Buffett’s exit, Nu Holdings shares declined by 5.38% on the latest trading session, underperforming the broader Brazilian financial index. Traders cited profit-taking and concerns over potential margin pressure as key drivers. Despite this setback, trading volumes remained elevated, with nearly 30% more shares changing hands than the 30-day daily average, indicating that institutional investors continue to be active in the stock based on evolving views of Latin American banking growth prospects.

Nu Holdings has surged to become the largest financial institution in Brazil by customer count, surpassing traditional banks with over 100 million active accounts as of December 2024. The company’s fee-free digital checking accounts and low-cost credit offerings have driven a 45% year-over-year revenue increase in its core Brazilian market. Its net interest margin expanded by 120 basis points over the past 12 months, reflecting both competitive pricing power and a shift toward higher-yield consumer loan products.

Analysts forecast that 2026 will be a breakout year for Nu Holdings as it capitalizes on underbanked populations across Latin America. With a current price-to-sales multiple below regional fintech peers, the stock offers relative valuation appeal despite a near-tripling of its share price over the last two years. Management guidance projects 30% revenue growth in 2025 and continuation into 2026, driven by geographic expansion into Mexico and Colombia, where Nu has already initiated pilot programs serving over 1 million new customers combined.