The stock market made a significant comeback in 2023, gaining 24%. But with the positive market sentiment, many stocks gained much more than that. Nu Holdings (NYSE: NU), which is part of the Berkshire Hathaway equity portfolio, gained 105% last year. Can it do a repeat in 2024?

Nu has many features that appeal to both clients and investors. It's an all-digital bank that provides a suite of low-fee financial services to its customers in Brazil, Mexico, and Colombia. The concept is catching on, and Nu is recruiting customers at a rapid pace. It added 5.4 million customers in the 2023 third quarter, and it now has more than half of the adult population in Brazil on its platform. Lest you think that amounts to saturation, it added as many as 1.5 million customers monthly in Brazil in the quarter, and it has a healthy base from which to onboard more. It has expanded into regions where it still has low penetration -- only 3% in Mexico and 2% in Colombia as of early 2023, so the market is still wide open. It will probably enter other regions in the future.

On top of that, it's been successful with its strategy of cross-selling and upselling new products to existing customers. It measures that with average revenue per active customer (ARPAC), which increased 18% over last year in the third quarter to $10.

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Source Fool.com