Is Nu Holdings Stock a Buy?
No stock remains hidden once Warren Buffett notices it. That's why Nu Holdings (NYSE: NU), a small but growing Brazilian bank stock, has come onto many investors' radars. It has traded for less than $10 for most of its life as a public company, and it's down 56% since its initial public offering (IPO) almost a year ago. Should you follow Buffett into a position here?
Nu has attempted to offer a different kind of banking experience in its home market of Brazil. It's a digital customer-focused bank that offers low-cost and easy-to-use banking solutions. This was a new concept when the bank launched in 2013. Brazil is dominated by five large banks that together account for about 80% of total banking market share, and a slew of digital banks and fintech companies has cropped up recently to grab some of the tightly held market.
Nu has ambitious goals, targeting both personal accounts and small business accounts with a range of financial services like bank accounts, loans, insurance products, credit cards, and more. It's the No. 1 credit card issuer in its three markets of Brazil, Mexico, and Colombia.
Source Fool.com
