Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) made a $500-million investment in the parent company of Nubank, a privately held digital bank based in Brazil, the South American company announced on Tuesday.
Nubank was founded in 2013, and said it has roughly 40 million customers.
The company’s CEO told the Wall Street Journal that an initial public offering is not currently planned but is likely in the future.
Buffett is no stranger to investing in financial firms, as traditional banks and insurance companies make up a large portion of Berkshire’s investment portfolio. However, Buffett had sold nearly all of his stake in Wells Fargo by the end of the first quarter, according to securities filings.
Together, the deal put Nu's value at ~$30B.The Berkshire deal is the largest single investment it has ever received, the company said. Nubank, has customers in Brazil, Mexico, and Colombia, it said, and has raised ~$2B since its was created in 2013. In 2019, SoftBank was considering a $1B investment in Nubank.
BRK.A jumped $4,460.00 or just over 1%, to $430,151, early Tuesday.
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