In late 2024, Warren Buffett’s conglomerate fully divested its position in Nu Holdings Ltd., yet the digital banking group went on to outperform every other former Buffett holding in 2025. Over the course of that year, NU delivered a total shareholder return exceeding 85%, driven by rapid user growth and expanding revenue streams. By December 2025, Nu had solidified its position as the largest financial institution in Brazil by customer count, surpassing legacy banks with more than 100 million active digital accounts, up from roughly 75 million a year earlier.

Nu Holdings shares plunged by 5.38% in the most recent trading session, a steeper drop than the broader Latin America financial sector index. The sell-off followed a cautious profit-taking wave after NU’s strong fourth-quarter results highlighted a deceleration in net revenue growth—from a 45% year-over-year increase in Q2 2025 to 28% in Q4 2025—raising short-term concerns among momentum investors despite the company’s solid long-term fundamentals.

Looking ahead to 2026, analysts emphasize that Nu’s current valuation remains moderate even after its outsized gains last year. Management forecasts continued customer base expansion at an annualized rate above 30% through mid-2026, fueled by underbanked populations across Mexico, Colombia and Argentina. With digital loans outstanding climbing to over $12 billion by the end of 2025—a 50% increase year-on-year—Nu is positioned to capture significant market share as traditional lenders struggle to modernize their platforms.