Warren Buffett Is Backing Another IPO -- Here's What You Need to Know
Investing in initial public offerings (IPOs) continues to be more common for legendary investor Warren Buffett and his company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B). After investing in the highly touted Snowflake IPO toward the end of 2020, Berkshire in June made a $500 million investment in Brazilian fintech company Nubank, which is now reportedly preparing to go public before the end of this year. Here are three important things to know about Nubank.
Nubank launched as a challenger bank in 2013 to help Brazilians find a simpler solution for their banking needs in a country with a volatile economy and incredibly high banking fees. Challenger banks are normally smaller, technology-driven banks that attempt to lure customers away from larger, more traditional banks. They tend to offer better customer experience and often better pricing on financial products, which they are able to achieve because technology allows them to cut out many of the legacy costs that traditional banks still have.
Indeed, Nubank's technology, product offerings, and forward-thinking culture has helped grow the company to more than 40 million users. It's no longer just the largest challenger bank in Brazil or Latin America (it has expanded to Mexico, Argentina, and Colombia), it's now the largest in the world.
Source Fool.com
