Down 40%, Can This Buffett-Backed Fintech Stock Resume Rallying?

Warren Buffett is arguably the greatest investor who's ever lived. He's gone from buying his first stock at the age of 11 in 1942 (three shares of Cities Service Preferred for $38 apiece) to managing a portfolio of equities through Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) worth more than $342 billion as of this writing. And he's made many, many people who've invested along with him extraordinarily wealthy in the the process.

That doesn't mean you should buy and hold exactly the same stocks as Warren Buffett does. Buffett has long admitted he doesn't enjoy some of the same advantages of smaller retail investors, particularly in that he doesn't have the luxury of owning many small- and mid-cap stocks (that is, short of acquiring their businesses outright). Given their size, these kinds of stocks generally can't move the needle as part of Berkshire's enormous equity portfolio, which helps explain why Berkshire has focused much of its capital on stable large- and mega-cap names.

There is, however, one particularly volatile mid-cap stock in Berkshire's portfolio that I think could be a massive winner going forward: StoneCo (NASDAQ: STNE), a Brazilian fintech company focused on helping local merchants seamlessly conduct commerce whether online or in person.

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Source Fool.com