Could This Overlooked Company Be One of the Best Investments of the Next Decade?

2 hours ago 1
  • Nu Holdings has important imaginable successful expanding into caller markets.

  • It besides has a agelong maturation runway successful monetizing its existing lawsuit base.

  • Buffett and his squad sold retired of Nu stock, but it has soared since then.

  • 10 stocks we similar amended than Nu Holdings ›

It's the artificial quality (AI) giants that are capturing marketplace attraction these days, but these immense companies are mostly past their highest-growth days. Growth investors looking for superior gains often person to excavation a small deeper to find the overlooked stocks that connection the top potential. Consider that respective years ago, the larger investing assemblage had ne'er heard of Nvidia, but investors looking for thing antithetic had already recovered it and reaped large rewards.

If you're looking for thing a small retired of the container today, see Nu Holdings (NYSE: NU), which could beryllium 1 of the champion investments of the adjacent decade.

Person with a telephone  and a Nu recognition  card.

Image source: Nu Holdings.

Nu was started by a radical of young, affluent consumers who felt locked retired of the banking strategy successful Brazil. The accepted banks determination person precocious barriers to entry, making it hard for lower-income users to enactment astatine each and challenging adjacent for the higher-income population. The founders sought to unfastened up entree done a integer app that had a constricted assortment of fiscal services, and it's exploded successful the decennary since.

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Today, Nu counts much than 60% of the colonisation successful Brazil arsenic customers, from each sociodemographic strata. It's besides getting a due slope charter to connection a greater enactment of services. It has expanded into Mexico and Colombia, and unneurotic these 3 countries person the largest populations successful Latin America. It's inactive a tiny beingness successful the newer markets, but it's increasing quickly, and arsenic of the extremity of the 2025 3rd quarter, 14% of the big colonisation successful Mexico and 10% of the big colonisation successful Colombia are connected the platform.

Nu added 4.3 cardinal caller members successful full successful the 3rd quarter, and there's inactive a batch much to bring on. Beyond caller customers, absorption sees a immense maturation runway successful cross-selling and monetizing the existing user base. It continues to adhd caller services, including circumstantial products aimed astatine the affluent membership, and it has years of maturation opportunities disposable arsenic customers prosecute with the level and marque it their superior bank.

The institution is besides making moves to grow into much planetary locations, including the U.S., and the runway is wide open.

Nu gained a sanction arsenic a Buffett stock, since Berkshire Hathaway invested successful its past circular of backing earlier it became a nationalist institution successful 2021. The holding institution sold retired of its presumption successful 2024, but Nu has continued to soar, gaining 62% past year. So adjacent if it's mislaid the Buffett cachet, you shouldn't relegate it to the has-been pile. In fact, it could beryllium conscionable the benignant of uncommon woody Buffett himself has spoken astir galore times. While different investors peruse the Berkshire Hathaway portfolio for ideas, bargain yourself immoderate Nu stock, which could extremity up being 1 of the champion investments of the decade.

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