Warren Buffett Has a Big IPO Coming Before the End of the Year. Should You Invest?
There may only be a month left in the year, but Warren Buffett and his company Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) are far from done in 2021. Before 2022 begins, they will be looking for a huge gain on their $500 million investment in the fast-growing Brazilian digital bank Nu Holdings, which I'll refer to as Nubank. The company is expected to go public in December and raise more than $3 billion, valuing it as high as $50 billion. Should you invest alongside Buffett and Berkshire? Let's take a look.
Nubank has been able to significantly disrupt the Brazilian banking market, which is filled with competitors that charge high fees and make banking very complex for consumers. In comparison, Nubank is a digital bank that offers a credit card with no annual fees, debit cards and cash management accounts, payment services, installment loans, and the ability to invest online. Nubank mainly serves customers in Brazil and Mexico, but is also expanding to other parts of Latin America.
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