Meet StoneCo, Warren Buffett's Small Emerging Market Digital Payments Investment
Warren Buffett has recently taken some heat over his holdings in Visa (NYSE: V) and Mastercard (NYSE: MA) -- or rather, over not owning more of each. While Mr. Buffett is a fan of American Express, Berkshire Hathaway's (NYSE: BRK.B) comparatively tiny investments in two of the best war-on-cash stocks of the last decade were a missed opportunity, with Buffett himself admitting the small positions are the responsibility of two of his portfolio managers, Todd Combs and Ted Weschler.
When it comes to investing, though, do-overs are allowed. Likely again because of his portfolio managers, Buffett is an owner of 8% of Brazilian digital payments company StoneCo (NASDAQ: STNE), one of the top performers in Berkshire's stable in 2019. This Buffett stock is akin to Square, and its liftoff could still be in the early innings.
As in many emerging market economies, cashless transactions are a fast-growing industry in Brazil with lots of potential. StoneCo operates in this large country, although it could expand into other Latin American countries as fellow Brazilian company Mercado Libre has. In Brazil, 85% of transactions are done in cash, and some 55 million people don't have a bank account.
Source Fool.com
