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Berkshire Hathaway sees 93% gain from Nubank investment in 2023

EditorAmbhini Aishwarya
Published 10/12/2023, 09:15 AM
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Warren Buffett's Berkshire Hathaway (NYSE:BRKa) witnessed a significant upward trend in its investment portfolio with a 93% rise from its stake in Nu Holdings, the parent company of crypto-friendly Brazilian bank Nubank. This surge has made it the top performer in Berkshire's approximately $350 billion portfolio this year, outshining key holdings like Amazon (NASDAQ:AMZN) and Apple (NASDAQ:AAPL), which surged by 57% and 39%, respectively.

Berkshire initially invested in Nubank during its IPO in 2021, securing 107 million shares that represented a 2% stake. Despite an initial dip of 13% from the IPO price, Nubank's shares have since recovered, contributing to the substantial gain for Berkshire. With an initial investment of $500 million, the stake is now valued at $845 million.

The operational growth of Nubank also played a crucial role in this success story. The bank increased its customer base by 28% to reach a count of 84 million and boosted its revenue by 61%, totaling about $1.9 billion. In addition to this, Nubank managed to turn a previous net loss of $30 million into a net profit of $225 million.

However, not all investments in Berkshire's portfolio saw similar success this year. Some key holdings like Coca-Cola (NYSE:KO), Bank of America, and Kraft Heinz (NASDAQ:KHC) experienced a decrease, contrasting the high returns from the Nubank investment.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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