Warren Buffett’s Berkshire Hathaway Sells Its Stake in Nubank’s Parent Company
The investment company Berkshire Hathaway, led by the Oracle of Omaha, Warren Buffett, has recently sold all of its shares in Nu Holdings, the parent company of Brazilian cryptocurrency-friendly bank Nubank. This sale not only concludes Buffett’s investment relationship with the digital bank but also marks Berkshire’s cumulative profit of $250 million from this investment.
(Background: Buffett admits: “I really feel old, thinking and reading has become more difficult…”)
(Additional context: Buffett previously invested in Brazil’s cryptocurrency-friendly bank Nu Holdings, with Berkshire holding $1.2 billion at one point.)
According to the latest data disclosed by the U.S. Securities and Exchange Commission (SEC), Warren Buffett’s Berkshire Hathaway has sold all of its shares in Nu Holdings, the parent company of Brazilian cryptocurrency-friendly bank Nubank. This sale not only ends Buffett’s investment relationship with the digital bank but also signifies that Berkshire has earned a total profit of $250 million from this investment.
The Journey of Buffett’s Investment in Nubank
Public records indicate that Nubank is Brazil’s largest digital bank, founded in 2013. Nubank actively embraces cryptocurrencies, allowing users to trade major cryptocurrencies like Bitcoin, Ethereum, and Ripple directly within its app, and in 2022 allocated 1% of its net assets to Bitcoin, becoming one of the most cryptocurrency-friendly financial institutions in Latin America.
Despite Buffett’s long-standing skepticism towards cryptocurrencies, even referring to them as “rat poison squared,” Berkshire invested in Nu Holdings in its early days, indirectly entering the cryptocurrency arena. However, starting in 2024, Berkshire began to reduce its holdings in Nubank. Data shows that in the third quarter of 2024, Berkshire sold 20.7 million shares at an average price of $13.46 per share, followed by the sale of 46.3 million shares in the fourth quarter at $13.22 per share, and finally offloading the remaining 40.2 million shares in the first quarter of 2025 at $11.83 per share. This concluded Berkshire’s total holdings in Nubank, resulting in an approximate profit of $250 million.
Berkshire’s Cash Reserves Reach $347.8 Billion
It is noteworthy that Buffett’s decision to liquidate his Nubank holdings does not appear to be due to poor performance; rather, it seems to be part of a broader adjustment in Berkshire’s investment strategy. In the first quarter of 2025, Berkshire not only sold its Nubank shares but also liquidated its holdings in Citigroup and significantly reduced its stake in Bank of America, selling over $2.1 billion in financial stocks. This series of actions has propelled Berkshire’s cash reserves to a record high of $347.8 billion, with $305.5 billion invested in short-term U.S. Treasury bills.
Moreover, Nubank’s financial performance remains impressive. In the first quarter of 2025, the company reported a net income of $557.2 million, a 47% year-on-year increase; its adjusted net income was $606.5 million, up 37% from the previous year. For the entirety of 2024, Nubank achieved a net income of $1.97 billion, reflecting a remarkable 91% annual growth, highlighting its strong competitive position in the Latin American market.
Additionally, according to Google Finance data, Nu Holdings’ stock is currently priced at $13, slightly up from Buffett’s liquidation price, with a nearly 21% increase over the past month. Its market capitalization is approximately $62.6 billion.
Strategic Considerations Behind Buffett’s Reduction of Investments
Buffett’s recent significant reduction in financial stocks reflects his cautious attitude towards the current market environment. Analysts believe that Berkshire’s accumulation of substantial cash reserves may be a preparation for potential economic uncertainties or to await more attractive investment opportunities. Buffett has emphasized in the past that “cash is king,” and this recent liquidation of Nubank and other financial stock holdings further underscores his focus on liquidity and risk management.
Furthermore, Buffett’s decision to clear out his Nubank holdings does not seem to negate the bank’s potential but rather continues his investment philosophy under the prevailing market conditions. As Berkshire’s cash reserves reach new heights, the next steps of this giant will remain a focal point for the market.
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