Why Should You Follow Buffett Into This Bank Stock?
Late last year, Warren Buffett and his holding company Berkshire Hathaway bought shares of a South American bank called Nu Holdings (NYSE: NU). Buffett owns several American bank stocks, of course, including Bank of America, U.S. Bancorp, Bank of New York Mellon, and Citigroup. But I'm most excited about Nu because I think it has the largest upside.
Buffett and Berkshire invested $1 billion in Nu, which is a tiny investment for him. (He reported having over $41 billion invested in Bank of America in Q1). If you dig into his Nu investment, you'll see it's an unusual bank stock for Buffett. It was an IPO investment -- as was data warehouse specialist Snowflake when Buffett bought shares at the IPO. And it's a foreign bank based in Brazil -- Buffett mostly buys American stocks.
But perhaps the biggest difference is that Nu is an internet bank that doesn't have a brick-and-mortar operation. That's why many people classify Nu as a fintech stock as much as a bank.
Source Fool.com
